The Obama administration will not allow new drilling; the administration kicked Shell out of Alaska after billions of dollars of investments; Obama shut down most offshore drilling. However, the Administration will allow China to buy up 600,000 acres of gas & oil fields in Texas. At the same time, Obama-friendly green extremists – lovers of teeny lizards – are trying to shut down Texas oil fields on the remote possibility that drilling might harm the teeny lizard most often seen as road kill.
China has already seized the opportunity to gobble up oil and gas deposits, which run throughout Latin America, the Caribbean and along the U.S. Gulf coast. The Chinese have a deal with Cuban leader Fidel Castro to explore and tap into massive oil reserves almost within sight of Key West, Florida.
From the San Antonio Express: …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.
It also might pick up some American know-how about tapping the hard-to-get deposits trapped in dense shale rock formations, analysts said.
As part of the deal, the largest purchase of an interest in U.S. energy assets by a Chinese company, CNOOC has agreed to pay about $1.1 billion for a chunk of Chesapeake’s assets in the Eagle Ford, a broad oil and gas formation that runs largely from southwest of San Antonio to the Mexican border.
CNOOC also will provide up to $1.1 billion more to cover drilling costs.
The deal represents China’s second try at making a big move into the U.S. oil and gas market, following a failed bid five years ago to buy California-based Unocal Corp.
Intense political opposition over energy security concerns derailed that $18.4 billion deal. But analysts expect few political or regulatory hurdles to the CNOOC-Chesapeake deal. Read here: Let the commies drill in the USA