Nexen Inc. is an gas and oil company based in Calgary. Now, China National Offshore Oil Corporation (CNOOC) offered a $15 billion deal to buy a major Canadian petroleum producer.

The Board Directors of Nexen has all agreed to accept China’s offer. The big question; Will Canada’s government approve this business proposition? Ever since CNOOC made this offer, Nexen’s stock market increased by ten percent.

China National Offshore Oil Corporation (CNOOC) is the major national oil company in China, interested in purchasing Nexen.

Currently, Canada is only selling their oil products to United States. If this business plan is approved, Canada has the potential in expanding the oil business world wide. This will result in multi-markets in Canada’s oil business.

The economy in the States is pretty bad and Europe is collapsing because of the debt crisis. Canada has the chance to strength their economy and make better relationship  with China. China is a developing and strong country. I believe there will be a day when China will be as powerful as the United States. So having a good relationship with China could be beneficial for Canada in the future.