With no confirmation of the story about Chesapeake selling its Bakken acreage that ran March 1, 2013, one starts to wonder about the story's veracity. However,
this Bloomberg story might a) put it in perspective; and, b) explain what might be going on.
China
National Petroleum Corp., the country’s biggest oil company, is seeking
its first stake in the U.S. as Chinese explorers with $40 billion of
cash try to join an energy renaissance unlocking billions of barrels of
crude.
“We are currently studying” investing in U.S. oil, Jiang Jiemin,
chairman of the state-run company, said yesterday at the National
People’s Congress meetings in Beijing. Domestic rival China
Petrochemical Corp. last month agreed to buy stakes in an Oklahoma field
from Chesapeake Energy Corp. for $1.02 billion.
Chinese oil companies using government loans want stakes in shale fields
that are fostering the most crude production in the U.S. in 21 years
and helping wean it off Middle Eastern imports. They’ll be guided by the
experience of China’s CNOOC Ltd.,
whose $19 billion bid for Unocal Corp. was blocked by U.S. lawmakers
eight years ago. CNOOC last month won U.S. approval for a $15.1 billion
purchase of Nexen Inc., albeit with curbs on operating the Canadian company’s Gulf of Mexico fields in U.S. waters.
Why are the US regulators (with obama's approval) allowing this to happen ? Dont people realize that no good can come from chineese ownership of these precious US assets.?
ReplyDeleteThere is some irony there, isn't there? Federal government okays these deals with China, but blocks the Canadian Keystone XL project.
DeleteNot sure if irony is the right word. Obama is showing favoritism to the chineese over Canada, our long term trading partner and close ally for many many years.
ReplyDeleteThis is despicable and more. Where is the outrage? Not directed to you Bruce as we all know how you feel about Canada vs china. Keep up the good work ! We can't afford to let chineese companies gain a foothold in industries that are crucial to our national security such as energy and related industries. This is devastating.
Right now, the USA does not allow oil to be exported (except to Canada, and some other exceptions). It will be interesting if the US eventually agrees to allow oil to be exported to China.
DeleteThere isn't much this country can do about China's ownership of assets like energy or other key security assets because of the enormous debt we owe them. A debtor is not free but can and will be controlled by the lender when push comes to shove.
ReplyDeleteKeep piling up your debt America and see how nothing of any good will come of it.
Wow, that sounds like a line right out of David Graeber's "Debt: The First 5,000 Years."
Deletehttp://www.amazon.com/Debt-First-5-000-Years/dp/1933633867
This was my first post from that book:
http://www.milliondollarwayblog.com/2013/01/debt-nothing-to-do-with-bakken.html
Search the site for more comments from the book if interested.
Thanks but I have not read the book but it looks interesting, Using common sense will lead to that conclusion. I glad someone has put what should be the oblivious into print. You name the bubble that has burst in the past and excessive debt has played a major roll in that downfall.,
ReplyDeleteBefore buying/reading the book, be sure to read Amazon reviews. I enjoyed it for its good writing, but it may not be universally enjoyed. I need to read much of it again to see what the author's overriding agenda was.
Delete