China buys stake in US shale gas field
While we dither and delay about fracking and permits and put a critical bit of energy infrastructure on hold (Keystone XL pipeline), China is aggressively pursuing energy assets … even in the US. The WSJ carries the story (subscription):
China continued its push into the U.S. oil patch, with a state-owned energy company striking a deal to help develop several shale fields in Ohio, Michigan and elsewhere.
China Petrochemical Corp.’s $2.5 billion deal with Devon Energy Corp., announced Tuesday morning, marks the third billion-dollar-plus joint venture that foreign energy firms have signed with U.S. explorers in as many weeks.
Known as Sinopec, China Petrochemical is making its first foray into the U.S. by buying a one-third stake in Devon’s acreage in five emerging fields—four shale plays and one limestone field.
Seems it will be up to the Chinese government to fund jobs in those areas while ours erects barriers in other areas.
While we continue to suffer from high unemployment, there are jobs all over the Midwest and the Gulf coast that could be created (and, yes, saved) by aggressive investment in oil and gas development. Most of that investment would be private. But it would require the government to get out of the way. And that is something this very ideological administration can’t seem to make itself do.
Instead we have the usual war against “Big Oil” going on (ideological fights usually are against some “Big” enemy) to the point that an industry which could be pulling us out of this recession and helping drop unemployment numbers is mostly reduced to sitting on the sidelines while ideologues argue, vent and frustrate any effort to do so.
Of course the point is someone somewhere is going to try to develop and take those energy assets. China is going to make a relatively small investment to see what it can take out of here. And if we don’t want what the Keystone XL pipeline would bring – besides a whole bunch of jobs I mean – China is prepared to take that as well.
Maybe its just me but for some reason I just find the worlds “myopic” and “stupid” poor descriptors for the policy this administration is following concerning oil and gas exploitation. They’re just too mild.
We have an economy hurting for jobs. We have a nation that needs cheap energy. We have an industry ready, willing and able to provide both. And we have roadblock after roadblock placed in front of them by government.
This, in my not so humble opinion, should be one of the major talking points for the GOP. We need energy. We need jobs. What we don’t need is an administration that places its ideology over the best interests of the nation and its people.