|I reckon we Texans are drilling for 'dem Chinese fellers|
One of the US oil and gas industry's talking points has been that we need to rev up domestic drilling of all kinds. They have pushed for renewed deep water off-shore drilling to resume. Additionally, they have pushed hard for unregulated Hydraulic Fracturing to continue at full speed in the Eagle Ford Shale play in South Texas. The industry's rallying cry has been that only by stepping up all sorts of domestic activity, can the US free itself from having to rely on foreign oil.
As it turns, out the Chinese have huge investments in many US based operations. In South Texas, they have invested $2 Billion while buying off one third of Chesapeake's stake. So much for using foreign oil as a scare tactic.
Chinese offshore oil and gas producer CNOOC plans to explore medium to long term investments in the unconventional resource sphere to drive the company's future, as it believes unconventional resources will play a critical role in China's energy mix.
Separately, CNOOC has made two investments in shale gas projects with US independent energy producer Chesapeake.
In late January, CNOOC agreed to pay $570 million up front and $697 million in drilling carry to be paid out over the next three years for a one-third stake in its 800,000 Niobrara Shale acres in Colorado and Wyoming in the US.
The deal follows an agreement signed in October 2010 under which Chesapeake sold a one-third stake in its Eagle Ford shale project in southern Texas to CNOOC for just over $2 billion.