Regular readers are well aware of this activity. But this is a nice article providing an update.
Much of China's energy and natural resource buys have been in unstable places -- Southeast Asia, the Middle East, Africa.
The Americas region is arguably much more stable than any of those regions. That's an attractive prospect for a country that relies on a steady flow of resources.
The Americas are also in the midst of an energy boom. From oil sands production in Canada to shale gas in the United States to promising deepwater finds off Brazil, the Americas are quickly becoming an energy powerhouse.
217 rigs and climbing.
ReplyDeleteWow, I wasn't even checking the NDIC rig site; I assumed 216 was the "high" for awhile. Thank you for the alert.
ReplyDeleteFrankly Mexico should be included in this thinking as it is saturated to the hilt in hydrocarbons. Pemex is just been way to slow to get any traction. Mex CA USA, is the energy juggernaught for the next 100 years. Brazils policy and the deep waters where the oil is, pose a huge risk for the operators, a few misses or spills and you've got financial chaos.
ReplyDeleteNucleated oil mined from shale formations will emerge as the most economic sources for hydrocarbons, as the process and methodologies are iterated, big gains will improve total recovery.
The significance of Most Efficient production per well will grow ever more important. Anyone who does not see the gains already being made by North Dakota labratory for E&P companies, is still in denial. Hedging offshore stuff makes good sense now, the politics in world oil, makes unreliable E&P.
The trend to produce from the Americas, will only get hotter as the knowledge and effectivness of these operators hit stride.
Wow, I agree 100%.
DeleteI know you are making a bigger point, but the smaller point you make about off-shore Brazil is absolutely correct. Already one sees Brazilian anxiety -- if folks think our Florida shores are sacrosanct, folks should visit the pristine Brazilian shores.
Got to give the Chinese credit for wanting to invest in real hard assets rather than Obama's government bonds to support his crazy wasteful spending.
ReplyDeleteAgree.
DeleteI think the Chinese adopted Nike's slogan: "Just Do It!"
The Obama administration, meanwhile, perfects the art of slow-rolling US potential.