“Beginning today, Abu Dhabi National Energy Company (TAQA) will own and operate TAQA North Ltd, following the completion of the acquisition of Northrock Resources Ltd, a subsidiary of the US firm Pogo Producing Company, for two billion US dollars,” a statement said.

“The new entity, TAQA North, is set to provide TAQA with an additional 142 million barrels of proven oil and gas reserves, over 37,000 boe/d (gross) and a best-in-class exploration and production team.”

The Calgary-based oil and gas exploration production company will have “access to significant development and exploration opportunities in Saskatchewan and Alberta, with key exploration plays in Canada’s Northwest Territories, British Columbia and the Alberta Foothills,” it added.

Founded in 2005, TAQA is majority-owned by the government of Abu Dhabi. Just under a quarter – 24.9 percent – of TAQA’s shares is traded on the Abu Dhabi Stock Exchange, while the rest is owned by the emirate’s government.

Much of the foreign investment in the Canadian oil industry has been aimed at exploiting the oil sands, which contain reserves second only to Saudi Arabia. Companies like Royal Dutch Shell Plc. and Statoil ASA have spent billions this year bolstering their access to the 174-billion barrel resource.

Milk consumption in China is soaring with rising incomes, a massive expansion of the dairy industry, and the creation of new taste-buds, of non-traditional food, among the young generation (ie. chocolate bars, cheeseburgers, lattes). Milk, yogurt, butter and packaged cheese slices can all be found in local supermarkets, with China’s growing love for dairy products today. Global demand for dairy products have been immense, while its supplies remain exceptionally tight.

According to the Food and Agricultural Organization, international dairy prices have increased 46 percent between the months of November 2006 and April 2007.

The Canadian government, as well as the United States government, imposes policies, tariffs and quotas to protect their respective milks from international prices. These policies are under strain today, as pressures from farmers continue to grow with high rewards in global markets. According to the United States Department of Agriculture, milk prices were at a record-high last month, where consumers paid an average $3.80 a gallon, compared to $3.29 in January.

Many companies that use milk as an ingredient, such as Hershey Co. (chocolate bar company), are looking to use less lactose and/or raise prices of their products due to the rising cost of milk. Now this would only be a solution (though I wouldn’t really call it one) for such substitutable products. What about the classic, healthy (required) milk? Hmmm…

Makes me wonder what other problems we will be faced with as the Chinese bubble continues to expand globally. As China becomes a growing net-importer in many industries, such as the dairy industry, it makes me wonder what China’s next big export will be… Global inflation?

Motorists in Toronto stopped to pump every empty litre in their tanks today, where prices fell as low as 96.9 cents (as per gasbuddy.com). It was the first time since March that GTA drivers celebrated prices below the $1 mark.

Celebrations aren’t expected to be long, so enjoy while you can. The decrease was lead by a combination of temporary factors, including a few American refineries who resumed operations after routine maintenance and unplanned outages. Expect this as a temporary relief, as global oil prices continue to rise along with the season’s increasing gasoline demand. When and how will prices fly back up? Who knows… so my advice, keep your tanks full.