Why Is Obama Allowing Chinese to Buy U.S. Oil and Gas Deposits?

THE  AMERICAN  DREAM

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?

Read more: Family Security Matters http://www.familysecuritymatters.org/publications/detail/why-is-obama-allowing-chinese-to-buy-us-oil-and-gas-deposits?f=must_reads#ixzz1vkkUVaTM Under Creative Commons License: Attribution

One response to “Why Is Obama Allowing Chinese to Buy U.S. Oil and Gas Deposits?

  1. I would say Obumma has to do it because of the situation he has put our country in- borrowing heavily from China and others. They probably are demanding some kind of collateral.

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