Free Markets, Free People

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.

~McQ

Twitter: @McQandO

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14 Responses to China buys stake in US shale gas field

  • I’ll wager an ice cold lager that China is doing this to learn how to do it. That is typically how they do business.

  • As with the Japanese a few decades ago, I say, “Show us the money…!!!”.

    Let the Chinese bring us investment $$$…hopefully by paying too much as did the Japanese. All good.

  • What’s the difference whether it is China or some other multi-national corporation. It’s not like it’s “our” oil, the multi-nationals get dirt cheap leases and then own everything that comes out of the ground and they sell it at global market prices. It’s not like oil in our backyard is any different, better or worse, than oil from anywhere else.
    My understanding of the drill baby drill policy is to expand global supply to create downward price pressure, so what’s the difference which non-American entity takes it out of the ground, the result will be the same.
    As long as the company has the assets to cover any externalities from fracking, and we can force payment, I’m fine with whoever does it. But I won’t accept a waiver on externalities that could destroy my community or create a new cost to my community. They are welcome to their property rights as long as they don’t infringe upon mine, and if they do, there better be recourse.

    • @CaptinSarcastic “Fracking externalities”. Gawd, you are really are stupid.

      • @Ragspierre That adds so much to the discussion, your wit and wisdom must be the toast of the forum.

        • @CaptinSarcastic And you covering for your stupid with sarcasm just exposes you further.

          Really, junior, do you ever have a flucking clue about what you bloviate about?

        • @Ragspierre I see you have devolved from attempting to make a point and including an ad hominem attack to just the ad hominem. Probably a good move on your part, stay with what you know.

        • @CaptinSarcastic What I know is considerably more than you, apparently. I know, for instance, not to write something as stupid as “fracking externalities”. I know precisely how stupid your statement is…AGAIN…in THIS instance…because I didn’t just trip over the word “fracking” in the NYT. I know the difference between the V-door and the cellar. And you obviously…AGAIN…haven’t a clue about the subject.

        • @Ragspierre It’s true, I am far from an expert on fracking, but I never claimed to be an expert, and I am not even claiming that fracking would likely result in any adverse consequences to surrounding property. But I do know that it is possible, and this possibility is a liability that I would require anyone in the fracking business to be financially responsible for. Do you have a problem with this requirement?

        • @CaptinSarcastic Take care of…oh…sixty years ago.

        • @Ragspierre @CaptinSarcastic Gotta love fracking and the modern advances allowing them to drill deeper. My mother has recently seen a windfall from a share in an oil lease due to new technology drastically increasing production.

  • OMG! You mean the Chinese actually think that our country is a good place to invest money in? Oh Noes! How will that help the establishment work up fear of the inscrutable yellow peril?

  • You’ve got to understand that the global warming alarmists are unable to convince people with open scientific inquiry (healthy scientific skepticism is blasted as heresy, even compared to Holocaust denial, much like the Church responded to Galileo) and unable to make free market inroads into alternative energy (sales of hybrids and electric vehicles are pathetic, “green energy” companies are often a front for political graft which can’t compete and even fold up with massive government subsidies—see “green energy” failures in Spain, Solyndra, et al.).

    They are so fanatical and blind to reason they consider making it difficult to use “non-green” energy sources, to the point of economic suicide, to be a valid means to attain their goal.

    I spoke with a relative who had been unemployed after his company went out of business. Despite struggling to pay their utility bills, he still saw policies which made using fossil fuels more expensive to be a necessary means to force us to end out dependence on those sources. Except such financially insane policies also suppress job creation and will result in utility bills which are double, triple, or worse. Even in his dire predicament, he couldn’t see how that would do direct harm to him and his family.