DIPLOMATS, oil majors, energy veterans and global energy pundits, while in discussion in Riyadh and indeed Dhahran – virtually the global energy capital – often raise the question; if and indeed when, oil producers (read Saudi Arabia) would provide upstream access to global oil majors? A pertinent question indeed, one has to concede. And during course of a similar discussion here in Riyadh, years back, this correspondent could recall good, old friend, Fatih Birol, the guru of the energy world, conceding, that probably Saudi Aramco doesn't need the assistance of oil majors. ‘It has all the technical capabilities and indeed resources.' Yet in the same vein he quipped, most other national oil companies do need the help of global oil majors. Yet despite all the technicalities, the very discussion has innate nationalistic passions, lingering in the background, one really can't deny. And the fervor is not specific to energy sector. Who can forget the furor some six years back when the UAE government-owned company DP World had won the rights to operate six main US ports through a multi-billion-dollar deal in which it acquired British P and O. But it was followed by a massive US Congress opposition which voiced security concerns over a deal involving an Arab state and DP World ultimately had to back out of the deal. This was nationalistic fervor at its peak. And now, while I am in Toronto, the same fervor seems engulfing the energy fraternity here too. Top oil industry executives are now asking Ottawa for rules to protect Canadian ownership of major oil sands companies from a flood of foreign investment expected in the sector. Foreign investment upstream has to be looked properly and extensively, they are asserting too. Indeed Canada's oil sands contain the third-largest crude oil reserves in the world and are a strategically critical resource for the country. As per BP's latest Statistical Review of World Energy, graphically displayed in a research note from AltaCorp Capital, 84 percent of the world's remaining oil reserves are either state-owned or controlled. And of the freely accessible leftovers, 62 percent reside in Canada's oil sands. And thus oil sands have a crucial role to play in the years to come. And the Canadian energy fraternity knows it – well. Though they are supporting the proposed $15.1-billion acquisition of Nexen Inc. by China's CNOOC Ltd., yet feel the deal signals growing foreign interest in the oil sands and insist Ottawa needs to ensure a substantial level of domestic ownership as more deals loom. “I think it is important to get some ground rules in place before the next one,” said Murray Edwards, CEO of Canadian Natural Resources Ltd., one of Canada's biggest energy companies and a major oil sands player. Canadian oil executives are apprehensive that a surge of direct foreign investment from China and other countries is just beginning to reach these shores and that Canadians are unprepared for fundamental changes it will bring. “There is a tidal wave that is heading out of China in the next decade and I don't think we're ready for it,” underlined University of Toronto economist Wendy Dobson, noting Chinese firms will be looking to invest more than $1 trillion in the coming decade to acquire access to resources and related technology. Canadian Natural's Mr. Edwards emphasized there should be limits to what Ottawa is prepared to approve given the strategic importance of the oil sands, insisting, “we want to make sure we have access to capital but, as a country, we want to ensure a strong Canadian presence in the oil sands.” Suncor chief executive Steve Williams too felt the government will have to grapple with the bigger issue of where to draw the line on foreign investment in key sectors. Cenovus CEO Brian Ferguson said he was a strong believer in the free market system but argued that Ottawa needed to ensure foreign investments were in the national interest and that Canada needed domestic champions in the oil industry. In a report released recently, the Canadian Imperial Bank of Commerce said Chinese firms own only 7 percent of oil sands reserves and total state-owned enterprise ownership is a mere 10 percent. And China is aware of it. Felix Chee, Canada director for the China Investment Corp., said Chinese companies face barriers that don't exist for US corporations. “I don't think it's about foreign investment, I think it's about China,” Mr. Chee said. And while Canada is perceived as a welcoming place for investment, he said “a million pair of eyes” are watching in China to see how Ottawa responds to the Nexen deal. Chinese envoy to Canada too warned against letting politics interfere with its multi-billion dollar takeover bid for Calgary-based Nexen Inc. Chinese Ambassador to Canada Zhang Junsai, brushed off concerns that Beijing would take advantage of a growing position in Canada. “We are not coming to control your resources,” he said. “If we politicize all this, then we can't do business,” the ambassador added. Meanwhile, lawmakers in Ottawa too have been expressing reservations over a possible Chinese takeover of a major Canadian energy company. Rob Anders, a Conservative member of the Canadian Parliament, too has been openly expressing concerns about aggressive acquisitions by foreign states. Lawmakers appear concerned about Beijing's dominance in a market habitually tied to the United States, despite the fact that the Canadian government is keen to break its reliance on the US markets. The Canadian government of Prime Minister Stephen Harper had said it was important for the country to expand its economic footprint outside of North America. Harper travelled to Beijing earlier the year in an effort to draw Chinese investors into his country's oil sector. Canada officials say roughly $500 billion is needed to keep the momentum going into the next decade. Yet that is not desisting opponent from making noises. And the debate is on. Handing out prized, national assets to foreign stakeholders is not an easy decision. Nationalistic pride plays significant role in this decision-making process - oil majors need to understand and indeed concede. The psyche is the same – be it Ottawa, Kuwait or Riyadh!