Michael Synder ~ 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?
because obama is a Socialist
Yes, I see something very wrong with all this, but regretfully the
author is not asking why things are going wrong in the US. One might
paraphrase it like this: Look at the first comment on this thread and
you know that the US is populated largely by brain dead zombies!
According to Lord James of Blackheath)(feb 12th house of lords) they own it anyway. Our govt. lied believe it or not.
us is broke
President Obama is one smart cookie. He knows that China has a almost a trillion US dollars to spend so why not do it in America? He also knows that it will take billions of dollars to explore and develop those petroleum resources so why not let China pay for that and emply Americans while it’s doing it. Finally, the resources once they are being produced must be approved for export and the US government of the time will decide when and if they can be exported or must be sold within the continental US.
This just in: Obama is Travolta’s former masseuse. Had to leave high-salary at bath house to take job ruining a Republic. More at 11.
America pushed the “free market” onto the third world so it could exploit their resources, but now it’s coming the other way, you’re complaining!!
Because we owe China trillions of dollars.
because Mr. Obama HATES this country.
maybe its because we have a free market economy” whats the point of the articles title? normally this contributor is all for libertarian republicanism, but when that actually takes place in an open market he wants to suggest he’s a nationalist. guess who’s manipulating your ignorance of economics and emotions in this little story? you can’t have it both ways, either you’re for open markets or your not, which is it?
Why does Obama do anything he does, he’s an idiot.
It is because you Americans are to complacent you have had it to good and thought you have had the world at your Feet.This indoctrination comes largely from the Elite (you all know who they are)who kept up the hatred against the Nazi’s and Germany by Hollywood, CNN< ABC and there alike to deflect from your own Agenda.
It seems a few of you Americans are finally waking up to realize the greater Evil which is Orchestrated by Satan himself who will eventually produce the Antichrist that will further deceit you.
But its too late, so repent and pray to your God as there is only one for all of us no matter what you may name him. Pray to Jesus as only through him you may enter heaven.
Perhaps the Powers to be already have an Alternative Power-source
and want to sell Oil to China hopefully in Gold not in worthless Dollars.
What is good for the Goose ought to be Good for the Gander.
But it is too early to spill the Beans about a New Energy Source
because it would raise havoc with the Stock Market.
If UFO’s exist and I strongly believe they do,there is too much Evidence our Governments then also know the Secret of their Power-source.
It would not surprise me if this Energy Source is Powering the Elite’s Bunkers right now.
Same thing is happening in Australia, China owns most of our mines, which is our major economic resource, & also the Chinese are buying up massive swathes of our real-estate, pushing prices in some areas beyond most local people’s reach because Asian millionairs are too hard to compete with for the average Aussie. Not only that, but prime farmland is being bought up by China at breakneck speed, all with the blessings of our government. It doesn’t surprise me though as Australia is practically owned by the U.S. We even have a huge US DUMB base here that the Aussie government doesn’t know & hasn’t the right to know what’s actuallu going on there!! They create the illusion of national sovereignty, but there’s no such thing anymore! They don’t mind selling important resources to balance the books in the short-term because they are all working for the same secret government, & with a one world government it won’t matter anymore which ‘country’ owns what. So long as the people don’t own anything, the PTB don’t care as it’s inconsequential to their long-term shcemes!
I happen to live in one of the most beautiful cities in North America and the Chinese want to live here aslo and will pay whatever it costs to do so. but please remember that these are wealthy individuals not Government agents. They want a safe place to come to if things go awry in their own country. Recently I sold my home to one of them. They actually arrived on my doorstep and asked if they could look at our property. I told them that it wasn’t for sale but then decided why not, let them look. Anyway they made an offer that I truly couldn’t refuse. They ended up offering me eleven times what I had paid for the house 26 years ago. After passing title over they said I could rent it back as they were going to tear it down but not for awhile. They then brought an architect over and I heard the translator tell him that the budget for the new house would be $7 million. How can any of us compete with that?