Why Is The Obama Administration Allowing The Chinese Government To Buy Up U.S. Oil And Gas Deposits Worth Billions Of Dollars?

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Why Is The Obama Administration Allowing The Chinese Government To Buy Up U.S. Oil And Gas Deposits Worth Billions Of Dollars?

Michael Synder
American Dream
Monday, May 14, 2012

If we are trying to become independent of foreign oil, then why is the Obama administration allowing the Chinese government to buy up U.S. oil and gas deposits worth billions of dollars? This makes absolutely no sense whatsoever. The United States desperately needs to maintain control over its own domestic energy resources so that we can end our addiction to foreign oil. As I have written about previously, the United States actually has plenty of oil. If we would simply use the resources that we already have, we would never have to import a single drop of foreign oil. But instead, we continue to be the largest importer of oil on the planet and we are allowing China to rapidly buy up oil and gas deposits inside the United States. This is fundamentally wrong and it is a serious threat to our national security. But apparently everything is for sale in the United States today, and that includes our precious energy resources.

The Chinese government is using two giant corporations to buy up these energy resources.

The first is the China National Offshore Oil Corporation (CNOOC). According to Wikipedia, this corporation is 100 percent owned by the Chinese government….

CNOOC Group is a state-owned oil company, fully owned by the Government of the People’s Republic of China, and the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) performs the rights and obligations of shareholder on behalf of the government.

The second is Sinopec Corporation. Sinopec Group is the largest shareholder (about 75% of the shares) in Sinopec Corporation. And as the Sinopec website tells us, Sinopec Group is owned by the Chinese government….

Sinopec Group, the largest shareholder of Sinopec Corp., is a super-large petroleum and petrochemical group incorporated by the State in 1998 based on the former China Petrochemical Corporation. Funded by the State, it is a State authorized investment arm and State-owned controlling company.

So wherever you see CNOOC or Sinopec you can replace those names with the Chinese government. The Chinese government essentially runs both of those companies.

And both companies have been very busy buying up U.S. oil and gas deposits.

For example, CNOOC recently completed a 570 million dollar deal that gives it a one-third interest in huge oil and gas deposits in Colorado and Wyoming. The following is from Wyoming Energy News….

Chinese energy company Cnooc Ltd. has agreed to pay $570 million for a one-third interest in Chesapeake Energy Corp.’s 800,000 leased acres in northeast Colorado and southeast Wyoming. The acreage is in the Denver-Julesburg (DJ) and Powder River basins. Cnooc is China’s biggest offshore oil and natural gas producer.

In fact, according to a recent Business Insider article, this deal gives the Chinese government the right to a third of any new oil discovered by Chesapeake Energy in the entire region….

The Niobrara Shale formation stretches over Colorado and Wyoming, as well as Kansas and Nebraska. Chesapeake Energy’s position is in Wyoming and Colorado. If Chesapeake find any more oil in this region, CNOOC has the rights to 33.3% of what is found.

But this is not the only area of the country where China now owns energy rights. The following is an excerpt from a recent state-by-state breakdown that appeared in the Wall Street Journal….

Louisiana: Sinopec has a one-third interest in 265,000 acres in the Tuscaloosa Marine Shale after a broader $2.5-billion deal with Devon Energy.

Michigan: Sinopec gained a one-third interest in 350,000 acres in a larger $2.5 billion deal with Devon Energy.

Ohio: Sinopec acquired a one-third stake in Devon Energy’s 235,000 Utica Shale acres in a larger $2.5 billion deal.

Oklahoma: Sinopec has a one-third interest in 215,000 acres in a broader $2.5 billion deal with Devon Energy.

Texas: Cnooc acquired a one-third interest in Chesapeake Energy’s 600,000 acres in the Eagle Ford Shale in a $2.16-billion deal.

The Texas deal was particularly noteworthy. The following is how a San Antonio news source described that deal….

State-owned Chinese energy giant CNOOC is buying a multibillion-dollar stake in 600,000 acres of South Texas oil and gas fields, potentially testing the political waters for further expansion into U.S. energy reserves.

With the announcement Monday that it would pay up to $2.2 billion for a one-third stake in Chesapeake Energy assets, CNOOC lays claim to a share of properties that eventually could produce up to half a million barrels a day of oil equivalent.

So why is the Obama administration allowing this to happen?

Are they so desperate to have China continue lending money to the United States that they would allow the Chinese government to pillage our precious energy resources?

Somebody needs to be asking our politicians that question.

But oil and gas are not the only U.S. assets that the Chinese have been buying up.

In a previous article, I detailed how the Chinese have been purchasing huge chunks of real estate all over the country as well.

For example, a recent Forbes article detailed some of the real estate deals that China has been doing in New York….

According to a recent report in the New York Times, investors from China are “snapping up luxury apartments” and are planning to spend hundreds of millions of dollars on commercial and residential projects like Atlantic Yards in Brooklyn. Chinese companies also have signed major leases at the Empire State Building and at 1 World Trade Center, the report said.

In addition, it was recently announced that the Federal Reserve will now allow Chinese banks to buy up American banks.

Where will all of this end?

Should all of us start learning to speak Chinese?

Meanwhile, our trade deficit with China continues to get even larger. Our trade deficit with China last year was $295.5 billion, which was the largest trade deficit that one country has had with another country in the history of the world. This year, we are already on a pace to break that record.

So thousands of businesses, millions of jobs and hundreds of billions of dollars will continue to leave the United States and go to China.

And China will continue to use some of the money they are getting from us to buy up pieces of America.

Does anyone else out there see something very, very wrong with all of this?

http://www.prisonplanet.com/why-is-the-obama-administration-allowing-the-chinese-government-to-buy-up-u-s-oil-and-gas-deposits-worth-billions-of-dollars.html

antikakistocrat's picture
antikakistocrat
Joined:
Apr. 18, 2012 3:41 pm

Comments

China is buying land and the Russians are doing military exercises and no one here has any comment or input ?

See this is the stuff that should concern you. Instead we get side-tracked on college issues and gay rights stuff.

If the Globalists go through with an invasion will you liberals stop your useless debating then and focus on survival then victory ?

antikakistocrat's picture
antikakistocrat
Joined:
Apr. 18, 2012 3:41 pm

Foreign countries have been doing this for years and now it's a big concern? It's an investment in the weak US dollar. Buy cheap and sell high. They know that the dollar will bounce back at some point so they are buying right now. This is nothing new. I first heard about it 20 years ago. I didn't like it then and I don't like it now.

It's not illegal for you to buy property in France or Spain or wherever. US companies do it all of the time all over the world.

Bush_Wacker's picture
Bush_Wacker
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Jun. 25, 2011 7:53 am
See this is the stuff that should concern you
Well, I see that there will be 20 Russians in Florida this month for joint exercizes to practice taking out some fake terrorist sites. The Chinese seem to be converting American T bills to buy shares in a variety of privately owned oil ETFs on the stock market . They bought some shares in a Danish oil drillling operation, and may buy others in the US. Isn't this allowed by NAFTA and other trade agreements? Isn't that how unregulated free trade is supposed to work?

Art's picture
Art
Joined:
Jul. 31, 2007 4:01 pm

Selling are resources to china is two fold..

One china wants the money we owe them And they do not want are worthless dollars. So its resources.

Second obama hates america free, he can not be our ruler for life under the current constitution so he needs china to buy us And convert the u.s into a communist country..

workingman's picture
workingman
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Mar. 20, 2012 8:13 am
Second obama hates america free, he can not be our ruler for life under the current constitution so he needs china to buy us And convert the u.s into a communist country..
Aha! A new bumper sticker! This is the stupidest one yet.

Art's picture
Art
Joined:
Jul. 31, 2007 4:01 pm

China pays our taxes that we refuse to pay.

chilidog
Joined:
Jul. 31, 2007 4:01 pm

Or the Globalists are setting up America for a most historical epic failure the likes will make Rome seem tame.

antikakistocrat's picture
antikakistocrat
Joined:
Apr. 18, 2012 3:41 pm

Alex Jones is just a conman, you should spend your energy in working to improve your life instead of wasting it on this nonsense.

WorkerBee's picture
WorkerBee
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Apr. 28, 2012 12:22 pm

Since when does "America" own its oil? Land, minerals and resources are bought/sold on the open market to the highest bidder.. This isn't Norway.

Retired Monk - "Ideology is a disease"

polycarp2
Joined:
Jul. 31, 2007 4:01 pm
Since when does "America" own its oil?
Ah, those pesky little truths. They can completely screw up a thread.

Art's picture
Art
Joined:
Jul. 31, 2007 4:01 pm

This article is wrong out the gate. Stating we have plenty of oil, and shouldn't need to import any? The US has 3% of the world's reserves, and uses 25% of the world's production. The more we rely on domestic oil the sooner the US runs dry. The faster we convert to all electric passenger vehicles and mass transit, the quicker this isuue becomes moot.

Another point, since the US federal govt produces and owns no oil, I am unsure why we say "our oil" when referring to Chevron's &, ExxonMobil's oil. Unless "we" implies that the sociopaths that run Chevron and ExxonMobil view us as a part of their team, and they will put "our" well being above their corporate profits, stop spreading that lie.

Phaedrus76's picture
Phaedrus76
Joined:
Sep. 14, 2010 8:21 pm
Quote WorkerBee:

Alex Jones is just a conman, you should spend your energy in working to improve your life instead of wasting it on this nonsense.

Where has he lied... ?

Show me where he's wrong ?

I've seen people like you come and go on other forums, yet the infowarriors are still around and will still be around when you get proven wrong and exit these forums.

antikakistocrat's picture
antikakistocrat
Joined:
Apr. 18, 2012 3:41 pm
I've seen people like you come and go on other forums,
Could it be because they just didn't like company?

Art's picture
Art
Joined:
Jul. 31, 2007 4:01 pm

If the u.s. Government does not think they own the oil why do the oil companies need to get permits to drill for it and pay royalties to the government when they sell it.

workingman's picture
workingman
Joined:
Mar. 20, 2012 8:13 am
If the u.s. Government does not think they own the oil why do the oil companies need to get permits to drill for it and pay royalties to the government when they sell it.
I think you may be onto something. The Government should not be issuing permits for drilling oil.

Art's picture
Art
Joined:
Jul. 31, 2007 4:01 pm

Or perhaps the Government should be undertaking drilling operations themselves. This could be accomplished by simply nationalizing the oil industry. (It isn't worth much to own a bunch of oil that can't be extracted from the earth). Then, America could truly be said to own this oil.

I take it that Workingman is advocating something along these lines.

Art's picture
Art
Joined:
Jul. 31, 2007 4:01 pm

We had a war with China while nobody was looking. It was an economic war. They won and now they own us. Welcome to the North American Republican of China. How's your Mandarin?

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captbebops
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Jul. 31, 2007 4:01 pm

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