China Poised To Buy Up Texas Oil Amid #Coronavirus Slump

From The Daily Caller

David Krayden Ottawa Bureau Chief May 16, 2020 1:12 PM ET

With oil prices going through the floor as the United States economy struggles from the coronavirus pandemic, China and other foreign countries could pick up some Texas oil at bargain basement prices.

The national lockdown has devastated the energy sector with cars not being driven to work, airline travel at a near halt — and bankruptcy a constant concern, Fox Business News reported Saturday.

The price of a barrel of oil recently fell below $0 a barrel.

Even before the COVID-19 economic slump hit, 98 Texas energy companies had filed for bankruptcy since 2015, according to Fox Business.

The stay-at-home orders across the country accounted for 30 million barrels a day in lost revenue while a price war between Saudi Arabia and Russia contributed to the global glut of petroleum, Fox Business reported. (RELATED: ‘Uncharted Territory’: Energy Analysts Worry Oil Prices Could Fall Below Zero, Forcing Producers To Radical Measures)

With so many companies struggling to survive, it makes them targets for China — who is always seeking to expand its energy portfolio. If China or another hostile foreign power gains control of America’s oil production, it becomes not just an economic calamity but a national security concern.

“I believe it’s a national security concern to allow unfriendly foreign countries to come in and buy land and oil in Texas and the United States,” Texas Railroad Commissioner Wayne Christian told Fox Business. (RELATED: A Barrel Of Oil Now Costs Less Than An Actual Barrel)

Fox Business noted that the Permian region of Texas was the site of a major energy discovery in 2018 when the area unlocked 46.3 billion barrels of crude, 281 trillion cubic feet of gas and 20 billion barrels of natural gas liquids.

Finding those resources meant the U.S. had twice the amount of oil and gas reserves that it had previously thought and paved the way for America’s current energy independence that President Donald Trump has touted.

0 0 votes
Article Rating
Newest Most Voted
Inline Feedbacks
View all comments
May 19, 2020 6:19 am

More “Red Menacing”. This is about #173 on my list of things to worry about. The Chinese ownership of “an energy portfolio” in the CONUS, or offshore, makes not a whit of difference to our national security. CNOOC has been in the GOM for most of this century, with only better management than Nexen (the FOREIGN OWNER, from whom they bought the assets), to show for it. The oil and gas can be redirected on a moments notice, if there’s any legit national urgency/emergency. As far as the Permian, if they want to donate $ to us – most of which won’t be returned – to recapitalize uneconomic operations, mo’ power to ’em….

William Astley
Reply to  bigoilbob
May 19, 2020 8:29 am


Remember the China US trade deficit…. that went on and on and on…

The problem is China’s cash machine is bigger than the US cash machine and China is very, very, rich.

China has sufficient US dollar reserves to buy all companies in the US.

China will keep buying key companies and stealing our trade secrets until we stop them.

Try buying a Chinese resource company or high tech company, in China. Impossible!!!

Oh I forgot, China in their country has two sets of ‘laws’ ,,, ….one for Chinese companies and another for foreign owned companies.

China stole the rare earth processing from the US by buying a US company and then moving the equipment and key people to China. China uses the rare earth materials as a advantage for Chinese firms over foreign firms. In Chinese business cheating to win, is absolutely OK.

So playing by Chinese rules the biggest, richest country rigs the rules so they always win and if not they use threats and their money to win.

Gary Pearse
Reply to  William Astley
May 19, 2020 10:56 am

William A: Molycorp was the rare earth company the Chinese bought. They still own the resource, unfortunately. At 8% rare earth oxides, it is one of the world’s richest deposits and was the world’slargest supplier for 30yrs up to 1995. The main downside is it is richest in the most abundant light REE (rare earth elements) Cerium, Lanthanum, Praseodymium which are cheap, as oxides ~$2/kg. and low in the rarer heavy REE more valuable by orders of magnitude (e.g. Terbium oxide ~$500/kg).

The process design they had was an old one and a nightmare with so many steps and loop-backs. The fact that the cut-off grade for the ore is 5%(!) on an ore averaging 8% is a flag telling you to get yourself another metallurgical consultant with a knowledge of chemistry. Their tailings pile would be the second richest deposit, already mined, milled and ready to go.

Reply to  Gary Pearse
May 19, 2020 11:21 am

Good, time for USG to seize it and get US owned and employed companies working it. We have been in a war a long time, long past the point we start acting like it!

Reply to  William Astley
May 19, 2020 11:40 am

The “trade deficit” is a myth, an accounting artifact of zero importance except for politicians, purposely defined with an asymmetric bias to push a political agenda.

Dollars out have to equal dollars in, or someone is throwing them away.

Reply to  bigoilbob
May 19, 2020 9:12 am

It’s not even in my top 500. If Red China bought Occidental, they would be producing the same oil, from the same leases, into the same pipelines, to the same refineries.

Foreign companies have operated in the US for a long time. Shell and BP are prime examples.

CNOOC tried to acquire Unocal. This was blocked by CFIUS. They then went after Nexen (formerly Canadian Oxy, CXY), which CFIUS couldn’t block. However, Nexen was forced to relinquish operatorship of all of its Gulf of Mexico assets. As a non-operator, CNOOC is pretty well irrelevant.

Reply to  David Middleton
May 19, 2020 10:50 am

Shell and BP are not the Chinese Government, Chinese companies are. Big difference.

Reply to  2hotel9
May 19, 2020 11:20 am

Equinor (formerly Statoil) is the Norwegian state oil company (67% owned by government) and operates in the US.

Eni (formerly Agip) is 30% owned by the Italian government and operates in the US (Gulf of Mexico and Alaska).

The French company Total operates in the Gulf of Mexico and a couple of “shale” basins onshore.

CNOOC (China National Offshore Oil Corporation) attempted to purchase Unocal in 2005, this was blocked by CFIUS. They then acquired US assets, primarily in the Gulf of Mexico, when it acquired Canadian company Nexen. CNOOC is not allowed to operate in the Gulf, only participate as a non-operating partner.

A few years ago, a Chinese investment firm was allowed by CFIUS to acquire Permian Basin assets of a couple of small US oil companies.

All Chinese companies are in some way owned by the government. They are allowed to acquire assets in the US under much stricter conditions than most other foreign entities.

Reply to  David Middleton
May 19, 2020 12:07 pm

Making my point for me. CCP uses “companies” to infiltrate their enemies, once they are in they use the targets’ own laws and regulations against them with support from leftists in the target country. You point out that USG does block some things they try, all the while other elements in USG are helping them, and state level actors are throwing their help to CCP in their open attacks against America. You really don’t see a problem with this situation, one you admit has been going on for quite some time?

Reply to  2hotel9
May 19, 2020 12:33 pm

It’s not a matter of whether or not I have a problem with it. While Red China isn’t treated exactly like the UK, Canada, France, Italy etc., we did grant them Most Favored Nation trading status and they are allowed to some extent to engage in direct investment in the US.

It is what it is. Would we have been better off if we had never economically engaged with Red China? Probably. From a national security standpoint, we would definitely be better off.

Apart from voting for people like Donald Trump, there’s not a lot I can do about preventing Red China from attempting to purchase US oil & gas assets.

Reply to  David Middleton
May 19, 2020 1:21 pm

And DJT can do a lot, which Democrats will fight tooth&nail. You can do a lot by detailing what they have done.

Reply to  2hotel9
May 19, 2020 1:27 pm

I’m pretty sure I don’t know any more than the Trump administration does.

Reply to  David Middleton
May 19, 2020 2:02 pm

You have worked in the industry, out them. Use their tactics against them. Steal their records, they do it so you can too. Dump their person financials on the internet, they do so you can to.

Reply to  2hotel9
May 19, 2020 2:48 pm

Not exactly in the geologist job description… or legal.

Reply to  David Middleton
May 20, 2020 1:04 pm

Just declare as a Democrat Presidential Candidate and do what you want!

Carbon Bigfoot
Reply to  David Middleton
May 20, 2020 4:43 am

Au contraire David — Big Dividend coming up. $5.20/share. Love to skim this stock CEO. Ex date 06/03/20.

Reply to  bigoilbob
May 20, 2020 7:06 am

This is an open invitation for the US (who apparently can produce $ out of open air) to buy out the Venezuelan energy infrastructure we lost to the Socialist government there.

May 19, 2020 6:23 am

Chicom buying Texas Oil, I guess David Middleton might not like it a lot.

Reply to  Vuk
May 19, 2020 7:05 am

Are the chinese really interested in buying tino the least profitable wells in Texas which are part of debt ponzi bubble, where they will at the mercy of and whim of a hostile govt., I doubt it. I’m sure they are much more interested in Africa where they can control all sides of the equation.

The stay-at-home orders across the country accounted for 30 million barrels a day in lost revenue while a price war between Saudi Arabia and Russia contributed to the global glut of petroleum, Fox Business reported.

Hang on, you can’t have it both ways. Firstly, a barrel of oil is not a “revenue” it’s a quantity of a commodity. There was a loss of PRODUCTION. If you can’t get rid of your product because of a glut and a price war, being forced to stop production may be a blessing in disguise.

Reply to  Greg
May 19, 2020 9:28 am

Oil sales = revenue

A 30 million bbl/d drop in demand = A 30 million bbl/d drop in revenue

The price per barrel is the same on both sides of the equation.

A $30/bbl drop in oil prices = A $30/bbl drop in revenue

Production = revenue

Reply to  Vuk
May 19, 2020 9:14 am

We want the ChiComs (and everyone else) to buy our oil, gas and refined products. We produce it for no other purpose than to sell it.

Reply to  David Middleton
May 19, 2020 10:54 am

So we let them own those companies? You honestly think CCP is not capable of “mismanaging” those US companies into the ground and then wrapping them up and taking our tax dollars in write offs from the failed businesses? They would laugh their a$$es off all the way to their mistresses apartments in Macau.

Economic warfare, and we are not even defending ourselves much less actually fighting back.

Reply to  2hotel9
May 19, 2020 11:07 am

“You honestly think CCP is not capable of “mismanaging” those US companies…”

Smith Foods comes to mind as a potential example.

Reply to  2hotel9
May 19, 2020 11:24 am

We want them to buy the oil, gas and refined products. Nobody buys a company for the purpose of mismanaging it.

In the Gulf of Mexico, Chinese companies are not allowed to operate. So they can’t mismanage anything. If a Chinese bought a company and shut down economically viable production, they would lose the leases and someone else would pick them up and restore production.

Reply to  David Middleton
May 19, 2020 11:51 am

“If a Chinese bought a company and shut down economically viable production, they would lose the leases and someone else would pick them up and restore production.” Which takes time and capital, and can be held up in various legal maneuverings. Hell, aren’t there non-compete clauses in oil business contracts the way there are in other industries? Lots of ways to use our own legal and business systems against us, the political left has been doing it for 40 odd years now, and they are helping CCP attack us. Hell, Nannee Pelosi was just on TV defending China about an hour ago, Chuckles Schumer was last night

You don’t see China taking majority control of energy production and food processing companies in America as a problem? Honestly?

Reply to  2hotel9
May 19, 2020 12:42 pm

You stop production, you lose the lease within a relatively short period of time.

Red China (CNOOC) didn’t try to acquire Unocal and ultimately acquired Nexen for the purpose of sabotaging or shutting them down. Their main purpose was to gain access to the expertise in offshore exploration and operations.

Reply to  David Middleton
May 19, 2020 1:26 pm

“gain access to the expertise in offshore exploration and operations.” Which they then stole, and everything else within reach.

As for the lease being lost, you really think they are worried about insignificant details such as that when they can simply move another company they have controlling interest in and do it all over, profiting from tax write offs yet again? Any damage they can do to America they will do.

Reply to  2hotel9
May 19, 2020 1:30 pm

They don’t control many companies and they have yet to sabotage any. Expertise is something you learn and gain through experience.

Reply to  David Middleton
May 19, 2020 2:18 pm

Funny, they never are seen to “control many companies” until the wheels come off, then everyone is so surprised to find out a “Chinese” company had controlling interest. They have been quite adept at hiding their actions, now they are moving in the open, just look to their diplomat corps, not the quiet, reserved ornaments they were just 3 years ago. What is it they call themselves now? The Wolf Warriors? How very poetic, almost like a western PR agency worked it out for them. Its all very much like the mafia, or the Democrat Party, lies, obfuscation, duplicity and in the end theft.

Reply to  David Middleton
May 19, 2020 2:35 pm

Mountain Pass Mine is Chinese owned. It ‘s shutdown. Granted, California regulations have helped to make it unprofitable but… it’s chimes owned and shutdown.

Reply to  David Middleton
May 20, 2020 1:02 pm

” it no longer made sense to acquire rare earths from a U.S. source subject to stringent environmental regulations. Instead, the hard business of extracting useful minerals was exported to other countries, where environmental damage was safely out of sight” So, EPA did not stop environmental damage, they just exported it to their friends in China. Seems like someone has been saying pretty much that for 30 years and being po-pohed as an environmental hater for pointing it out. Imagine that.

Just how fast could this mine be operating if it was declared a National Security priority by Orangemanbad? Be fun to find out!

Reply to  David Middleton
May 19, 2020 11:05 am

It doesn’t take much oil and gas for the ChiComs to make rubber doggy doo. We should sell them just enough to allow them to do that. Then, we need to find a better country to make our rubber doggy doo and redirect our oil and gas sales to them.

May 19, 2020 6:51 am

Notwithstanding, China owns significant positions in American ag (kind of being pecked by the same Cock-of-the-Walk)…Trump and Navarro realized something way back when yet all these free market conservatives thought they were daft. ‘Free’ market only works when the players, for the most part, operate from the same rule book – encompassing ‘minor’ things like environmental stewardship, human rights, monetary/tax policy. China does not do this, US policy (share price in the markets) rewards those few in the upper echelon leaving the unemployed surfs to cut the boredom with oxy. At what cost to the members of a society is all this rather cheap stuff coming out of China.

chief economist of my house

May 19, 2020 7:01 am

Time for Fed and state regulatory agencies to step in and block China from acquiring anything in America. All the Belt&road dupes need to tell CCP to GFT, round up all Chinese nationals in their countries and expel them whilst seizing all physical assets.

Reply to  2hotel9
May 19, 2020 7:55 am

All the senior members of the CCP have stashed their wealth offshore, much of it in the form of American real estate. Seizing that would be far more effective.

Pat from Kerbob
Reply to  Graemethecat
May 19, 2020 8:48 am

They own a sizeable portion of Canada, including the couple mansions in Vancouver that Meng has been under “house arrest” in while we await to see her extradited to the usa.

All laundered money

Reply to  Graemethecat
May 19, 2020 10:42 am

Step by step, CCP embraced this new form of warfare early on, time for America and everyone else to catch up. China has long had to policy of seizing the assets of foreigners doing business in China, time to apply same to them.

Reply to  2hotel9
May 19, 2020 8:13 am

This is routinely done by CFIUS, Committee on Foreign Investment in the United States.

Reply to  Scissor
May 19, 2020 10:43 am

Good, they need to be weaponized.

Pat from Kerbob
Reply to  2hotel9
May 19, 2020 8:57 am

The problem for the “Belt and Road dupes” is that the west is doing their best to keep them in poverty, wanting to finance wind and solar projects only, and “help” Africans stay with subsistence farming, and even reverting to hunter-gathering.
Not being stupid, they are very gratefully taking the chinese money to build actual working infrastructure, coal and gas fired power plants, ports etc.

I too worry (worried) about Belt and road and wondered why countries fall for the chinese debt trap.
I figured it out that its because at least the chinese are offering them something instead of continued poverty.

As has been noted on here many times, if you are worried about population growth and pollution in the 3rd world, the only solution is to make them rich.

the same people who are conspiring to destroy the west are trying to eradicate population in the 3rd world.

Canada is of course directly involved, destroying our own economy while at the same time offering billions to the chinese propaganda development bank that is financing hundreds of coal fired plants around the world.
Go figure.

Chinese smart, we dumb.

That is the story

Reply to  Pat from Kerbob
May 19, 2020 10:46 am

Turn DJT loose on that entrenched leftist stupidity from our government and watch African countries flourish. Everybody in the developed world has been choking out African countries, time for that sh*t to stop.

Andy Espersen
Reply to  Pat from Kerbob
May 19, 2020 11:02 am

Yes, Pat from Kerbob – and Chinese rich, we poor. The Chinese are out-maneuvering us in clever capitalism – and nothing we can do about it. The over-all picture is that global, economic progress is maintained. Poorer nations are becoming richer, their populations are suffering less – BINGO

Reply to  Andy Espersen
May 19, 2020 11:17 am

CCP is using “capitalism” as a weapon against everyone else in the world, the political left in America/Europe is twisting law to stop us from defending ourselves, much less fighting back. The only clever part is CCP quietly financing the political left in the targeted countries.

Andy Espersen
Reply to  2hotel9
May 19, 2020 1:42 pm

2hotel9 – CCP is using capitalism in its time-honoured meaning : to make capital profit for investors.

And what’s wrong with that??

Reply to  Andy Espersen
May 19, 2020 1:58 pm

No, they are not, there are no investors in CCP, it all belongs to CCP, good little pigs get the top of the slop bucket, everyone else gets the sh*t.

Reply to  Andy Espersen
May 19, 2020 2:19 pm

Oh, and nice defense of everyone’s enemy, I’m sure they will take note and reward you in the manner you so richly deserve.

Joel O'Bryan
May 19, 2020 7:10 am

Only if China can use its military to seize a resource area through militaristic imperialism is there any real Chinese threat to anyone’s oil. And China looks regionally to be the looming threat there for this century. First an d foremost the SOuth China Sea. Then on to The Philippines, Brunei. Ultimately Australia with its vast resources or iron ore, bauxite, and uranium.

Texas is not going to see any Chicomm Army show up in Galveston… I promise. By far and away the biggest threat to Texas oil and US energy independence comes not from China or Russia, but from Washington DC if the Socialist-Democrats seize power there.

It’s the power hungry Libtards and their Green Blob Masters who have bought the Democrats that represent the real threat to allowing US domestic producers to get back on their feet after this politically-induced COVID lockdown catastrophe. The US can and will survive all sorts of calamities, external and self-induced. But what no nation has ever survived is getting its political structure wrong.

Reply to  Joel O'Bryan
May 19, 2020 1:01 pm

Current regime put right what Mao got wrong, now they have techno-industrial empire running half of the globe’s technology, they do not need an army to invade anyone.

Andy Espersen
Reply to  Vuk
May 19, 2020 3:10 pm

Spot on, Vuk — I believe their army is only there to defend themselves against us (and for good reasons). They are achieving power by peaceful capitalistic means – just like Britain did it (with, admittedly, a few exceptions!!).

Walter Sobchak
May 19, 2020 7:17 am

Buying inventory is not the same as buying control of producers.

I am sure that the owners of the tankers floating off the California coast will be happy to send them west to Cathay at the current market price (10 am EDT 2020.05.19 ) which is $33.05/bbl for WTI and $35.28 for Brent. It would represent an enormous profit for them, and it would stop the bleeding of demurrage.

Tom Bakewell
May 19, 2020 7:26 am

The Chinese bought (the rights to mine) a large molybdenum deposit near Austin, Nevada a while ago. We’re all waiting for them to come and try and take possession of the moly by opening a mine and mill. We could stand the jobs. Lettum buy up mineral resources. They can’t just up and walk away with them, can they?

Reply to  Tom Bakewell
May 19, 2020 7:48 am

True they know that, but via employment of the local population they’exert subtle pressures on locally elected officials and through them all the way up to state or even federal legislature. Chinese plans are long term and Trump will not be around after 2024 elections.

Reply to  Vuk
May 19, 2020 11:05 am

Soros has shone through the DA Project that foreigners can control local elections simply by funneling money to campaigns and individuals on a pretense of “charitable giving” which our DOJ has spent the last 20 years clearly showing they have no intention of investigating, much less stopping. China is not letting that lesson go to waste.

May 19, 2020 7:34 am

Get it by hook or crook
EasyJet hit by ‘highly sophisticated’ cyber attack
The details of 9m customers have been compromised, including about 2,000 credit card numbers, in a major data breach.
Two people with knowledge of the investigation, who spoke on condition of anonymity, told Reuters the attack appeared to be part of a series by suspected Chinese hackers aimed at the bulk theft of travel records and other data.

Ron Long
May 19, 2020 7:44 am

I have immense confidence in Texans to deal with hostile foreign nations. Remember “don’t mess with Texas”? “Remember the Alamo”? “Houston, we have a problem”? If China wants to make a move on Texas I’ll get myself some Lone Star Beer and jalapeño chips and enjoy the show.

Reply to  Ron Long
May 19, 2020 10:58 am

Why haven’t they dealt with Austin? Enemy in their midst. This inspires little confidence.

Ron Long
Reply to  2hotel9
May 19, 2020 12:11 pm

2hotel9, Texans look at Austin like the zoo, you can go there, float down the canal, eat some good food, watch the weirdo contests, then go back to where you came from and remember the laughs. 2hotel9? Is that a military call sign?

Reply to  Ron Long
May 19, 2020 12:30 pm

Used it off&on doing battalion level crap. When I finally succumbed to the Electronic Age I used it in my first email address then used it as usename pretty much anywhere I went. And yes, I have a notebook filled with passwords and various login data. Have family in Tejas, El Paso and Baytown, some along the east end of the Red River, none of them go to Austin unless they are being paid.

May 19, 2020 8:02 am

While they might be able to sabotage the production facilities, they can’t get the oil unless we let them ship it. Still shouldn’t let them buy it. Or maybe we do and then collect it as part payment for all their crimes.

Reply to  bluecat57
May 19, 2020 11:10 am

Get controlling interest, drive it under, collect US tax dollars through write offs on the failed business. Lots of American “Gordon Gekko”s have done that for decades, China would have little compunction about doing it simply to collapse our energy sector and drive up unemployment.

May 19, 2020 9:20 am

I’ve often wondered if the fossil fuel deinvestment movement pushed by people like McKibben (who worked for at least 1 NGO that was funded with Rockefeller money) isn’t really about saving the world, but instead to bomb the stock prices of oil companies so that rich people or other companies can get them at bargin prices.

Gary Pearse
Reply to  kramer
May 19, 2020 10:16 am

You can’t sell off oil company shares without buyers of which there is no shortage. Indeed, if you divest in a large lump, temporarily pushing the price down (you would have to offer at a lower price if in a hurry), they would be snapped up without a ripple! Even large holdings by universities and the like are small compared to the market. Hey, put me on a list of “crowd sourced” buyers and dump the load.

J Mac
May 19, 2020 9:56 am

Re: “China Poised To Buy Up Texas Oil…”
This is an “All sizzle, no steak” story. I keep seeing this allegation… but have not seen any confirming data.

Sounds kinda like “The Climate Is Poised to Overheat in 12 years!”, doesn’t it?

Gary Pearse
May 19, 2020 10:06 am

The Chinese would be very very wise for two reasons to come and buy up and store the surplus oil and gas. They can’t squeeze much out of their own deep oil and gas fields and although vast areas in China are underlain by oilshales, try as the might, fracking has been a miserable failure (maybe US’s EOG – a vestige of Enron and the most innovative hydraulic fracturer in the world could show them how it’s done). China needs the fuel, number one, and number two, this would be doing a big favor for the US at this bad time, giving them a chip in the in an angry US reckoning with China that’s in the offing. There are probably similar things in different parts of the US economy that this strategy could be used for. There aren’t many smart leaders of countries these days, but this is a no brainer.

May 19, 2020 12:16 pm

Is this legal? Aren’t these mineral rights purchased from the US Government?

if it is, would owners willingly sell to Chinese companies rather than just close in the wells for a few years? Isn’t it unpatriotic to act like a Capitalist by selling to a Communist?

May 19, 2020 12:27 pm

Chinese ambassador is every other day on Brits TV, very effective in spreading their version on CV or Huawei. There is large number of both Tory and Labour MPs against Huawei doing the UK’s 5G, but No10 isn’t changing the policy despite Trump telling BoJo he ‘can’t have his cake and eat it’.
Just announced, 19-May-2020
Huawei, the Chinese tech giant, has formally announced a $6.1 million sponsorship deal with Imperial College London. Through the five-year “strategic partnership,” the company will “provide Imperial with world-leading technology, such as 5G and AI Cloud for a new innovation center,” said Victor Zhang, vice-president of Huawei.
…. and siphon off anything worthwhile coming out from the IC’s research, regretfully not much these days, hardly anything changed since Piers Corbyn and myself (a few years later) were hanging around pretending to be doing PhD research, in my case never completed, and it appears Piers didn’t do much better either.

May 19, 2020 3:20 pm

I read where China lost approximately 400,000 manufacturers in the first quarter of this year and even worse, practically none had any future orders on the books!

Things are so bad (the CCP demands profits from next month’s quotas, pandemic be damned) the owners are setting fire to their facilities to collect insurance and duck the quotas!

It really sounds like the CCP had better address the more serious issues at home rather than dabble in speculative oil acquisitions!

May 19, 2020 10:50 pm

“With oil prices going through the floor as the United States economy struggles from the coronavirus pandemic, China and other foreign countries could pick up some Texas oil at bargain basement prices.”

Well, doesn’t that indicate China and foreign countries don’t have any better thing for them to buy domestically?
There could problems with it, but mainly has to do with US laws.
Any Chinese buying anything US, should be regarded as Chinese government buying. Because Chinese are living in totalitarian government. But don’t have problem with the Chinese totalitarian government buying US crude oil or the companies which mining the crude oil. I do have problem with Chinese totalitarian spies in the US. We already have Chinese totalitarian spies in the US and they are stealing technology. but I have no problem with Chinese totalitarian government buying technology. It’s the stealing I have problem with.
So, I want the Chinese totalitarian government getting US technology, in same way that any US citizen can get US technology which is in a manner which is legal.
I don’t think it’s “fair” that only way for Chinese can frack oil, is allow US companies to go to China and frack China oil. And not clear to me how China can legally get fracking technologies, and rather than hoard such expertise, it “should be” in US interest to get other countries in world, fracking.
So, it seems a way for China to acquire it, is by buying US oil companies which frack. Don’t think I would call that stealing technologies. And seems like slow and inefficient way of doing it- or as said, it seems it would be US interests if China could frack.
Of course China is fracking, it doesn’t seem the doing it as well as US. And if foreign countries could as successful, it seems it’s good for US and globally.
Or is seems US appears to want to lower CO2 emission, and should want natural gas to replace coal burning- as is happening in US and resulting in lower US emission {and less air pollution}.

So it seems quite possible that US government is screwing up, in terms encouraging fracking to occur globally- because it’s not happening. And China might “steal” US fracking technology and “do the right thing” that US should have been doing, of encouraging fracking to occur more globally. And doing such a “good thing” will help China become superpower, that US is current failing to do.
But point is, US government’s corruption and incompetence is “main problem”. Or US is wasting trillions of dollars on “global warming” and failing to get other countries to do more fracking. Just as US is failing to get other countries peacefully using more nuclear energy. But seems fracking could less dangerous, compared to other countries having non peaceful uses of nuclear energy. Or fracking is win win.
Of course there are some US companies who exporting natural gas to other nations, and might not want any competition {which is really stupid, that it is being stupid would attract the stupid politicans like flies to sh*t}.

So, in environment of US politician squandering global opportunity- or allowing more global poverty- China stealing/buying oil mining technology could be the lesser or two evils. And if know how evil Chinese totalitarian government is, one appreciate quantity of the incompetence and recklessness of US politicans.
But with Dem party continuously trying to impeach the US president, that should have already clue you in to this.

Reply to  gbaikie
May 20, 2020 4:49 am

“So it seems quite possible that US government is screwing up, in terms encouraging fracking to occur globally- because it’s not happening. And China might “steal” US fracking technology and “do the right thing” that US should have been doing, of encouraging fracking to occur more globally. And doing such a “good thing” will help China become superpower, that US is current failing to do.”

Fraccing isn’t high science. Rather, it’s a commercial combination of the right geo, LOTS of water, LOTS of sand, LOTS of CAPEX for the fleet, a big investment in haz waste disposal wells (or just overwork those you have, and watch the quake swarms), and a Ben Dover reg environment that allows you ignore the aquifer inocullation, and to communize the subsequent, Trumpian YUGE asset retirement obligations. China has – or could have – most of these things, except for the geo. My understanding is that their shales are mostly too deep to be commercially accessible (Mr. Middleton can probably expand/correct, if necessary).

Reply to  bigoilbob
May 20, 2020 10:07 pm

China important but main thing is rest of the world.
But you want to reduce global CO2 emission, then China is quite important, as is currently double US CO2 emission. And once upon a time, US had quite a bit more CO2 emission then rest of world. And US is leading the world in terms CO2 reductions.

Reply to  gbaikie
May 21, 2020 3:50 am

“And once upon a time, US had quite a bit more CO2 emission then rest of world. And US is leading the world in terms CO2 reductions.” And we can thank fracking!

May 20, 2020 5:22 am

“inocullation” s/b “inoculation”. Yah, lousy typist…

%d bloggers like this:
Verified by MonsterInsights