Mike Whitwell, owns a 3,100-acre ranch and leases 11,000 acres near Cotulla where he runs cattle, is waiting for drilling to start on his property. He said CNOOC’s entrance into the Eagle Ford oil and gas formation could give younger generations a reason not to move away. Bob Owen/Express-News
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.
Are you kidding me???
If the government allows this to go through, then the administration should be questioned about treason???
The Chinese are slowly taking us over because our government is too stupid to realize that they are buying us out!!! This deal should be loudly and publicly killed by President Barrack Obama, if not then he IS a traitor!!!!
This is what happens when China starts OWNING our Federal Government. We are in serious debt to China thanks to all of this deficit spending.
To take back OUR country, we need to live within our means. If that means cutting out entitlements and social services… then so be it. The more money we ‘borrow’, the more they OWN us. This oil deal on 600,000 acres in Texas is just a visible example. The real problem is how much of the U.S. economy China owns that you can’t see.
In November, VOTE! Vote Conservative, Vote less spending, Vote for balanced budgets and NO BORROWING. Vote to stop sending OUR money and resources overseas.