Chinese own 1/3 of Chesapeake's interests in the Eagle Ford Shale play

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.

From Platts.com

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.

When will Mayor Salinas meet with Haliburton and Slumber J ?

Laredo settles for Eagle Ford morsels while San Antonio plans a feast!

San Antonio's Economic Development Foundation is headed by former US H.U.D. Secretary Henry Cisneros.  He, along with former Mayor Wolff have been meeting with Haliburton and Schulember officials about possibly building a huge Eagle Ford Shale center of operations in the Alamo City. This is what is called thinking big. The type of jobs associated with such a headquarters will include many highly-paid positions such as directors, administrators, researchers and the like.

Although San Antonio appears to be shoe-in, the plans are not final. I wonder why our travelling Mayor Raul Salinas hasn't mentioned anything about meeting with these industry fat cats? I guess he's willing to accept that San Antonio is one more city that will devour our lonche.  Like I've said before: they'll let Laredo have all the lower-level jobs but save the really transformational investment for cities like San Antonio. OK, Mayor, you love to travel- now go do your job!

Excerpted from Friday's SA Express News

Oil-field services giant Halliburton Co. is shopping for a “supersite” in San Antonio that would employ hundreds to serve its clients that are drilling in the Eagle Ford shale, Bexar County Judge Nelson Wolff said Thursday.

“We're definitely looking” to establish a site in the San Antonio area, Halliburton spokeswoman Tara Mulee Agard said. But because the company hasn't finalized plans, she said she couldn't say how many positions the office might include.

Bexar officials said this wasn't yet a done deal, but they were optimistic it would come together.

“It looks promising,” Wolff said, and added that Halliburton likely will make a decision in 30 to 60 days.

If Houston-based Halliburton does establish a major office in San Antonio, it “would be the biggest (Eagle Ford-related company) in terms of employment as well as diversity of the jobs,” Wolff said.

Because the company would bring high-paying jobs, landing it would be tantamount to San Antonio's winning the Toyota pickup plant, he said.

Read more: http://www.mysanantonio.com/business/article/Oil-field-services-giant-looks-for-S-A-site-2141777.php#ixzz1WOCjJFGP

El Paso, other cities eating....make that drinking our water via Xeriscaping

Common sense landscaping? Not in Laredo, you don't!

Our never-creative city leaders have failed to even consider substantive, common sense approaches to deal with the ever-present water availability problem in the Gateway City. The best they can come up with is :stage 3 water restrictions and 500 bucks in fine for any resident watering when not authorized to do so. It's high time that someone with some brains took the initiative and do something-anything.

They probably don't "outlaw" water-heavy St. Agustine grass because someone, somewhere would loose some business. I say: Just sell a different, more water-friendly strain of grass. The bad thing is that if we, as citizens, would start pushing for such a change (not everyone at the same time), the only thing that might happen would be that someone would get paid off for voting against something so reasonable.

From The Associate Press-as appearing in LMT

EL PASO — For decades this city in far West Texas defied the look of most desert communities, with

neighborhoods boasting lush, green lawns and residents freely running their sprinklers.

Then a study released in 1979 showed just how close El Paso was to a crisis: At its rate of water use, the

city would run dry within 36 years.Over the next couple of decades, the city took drastic measures to stabilize its water supply, undergoing a philosophical and physical face lift that included ripping up grass from many public places, installing rock and cactus gardens and offering financial incentives for residents to do

the same.

Today, El Paso is among the few cities in the drought-stricken state not worrying about water. It’s a distinction El Paso leaders attribute to a conservation plan that other cities in less arid climates such as San Antonio and Austin have tried to a limited extent amid receding water resources and booming population growth.

But even in El Paso, the changes have been a tough sell for some residents who cherish their lawns and

have bypassed financial incentives to rip them out. “In school, when they told us to draw a house, you would always draw it with grass,” said Fred Fierro, 75, who wakes up early to water his turf with his wife.

Laredo Morning TImes editorial calls for financial prudence at LISD

Pushing for the raise are trustees Hector Garcia, Johnny Amaya & Cecilia Moreno

From the Laredo Morning Times
Editorial exceprt

Trustees should not be careless with the district’s money.

They must look ahead if the district is to remain financially responsible in future years.

In the coming year, the district has been forced to cut $9 million from its budget.

And administration came up with a plan that not only cut that $9 million, but also left the district with a $2 million surplus.

This is admirable. In 2012-2013, the district will need to cut even more.

Financial planning 101 will teach you that you have to plan not only for the short term, but also for the long term.

Salary increases next year mean more money dedicated to payroll the year after that, and so on.

And will trustees push for another increase on top of this one when budget time comes up next year?

At some point, trustees are going to have to face the cold, hard reality that more cuts are coming.

Right now, LISD has a $2 million surplus in a time of cutbacks.

Stop while you’re ahead. You’ll need that money for the 2012-2013 budget when things get even worse.

From Laredo to Valley, school districts considering a "Hurricane Alex" tax

I have to admit that, locally, I haven't heard any mention of tax increases at either local district. But, a Valley newspaper is reporting differently. Let's hope that this does not affect Laredo. It's already bad enough that our Webb County leaders are trying to increase tax revenues to help offset the nearly $1 million dollars they squandered by mismanaging state and federal programs.

In any event, enjoy The Weather Channel's interview with our illustrious Mayor, Raul Salinas.  Incidentally, Tropical Depression 2 was the system formerly known as Hurricane Alex-one and the same.

Interestingly enough, the embedded video depicts Mayor Salinas repeatedly making mention of how well Laredo & Nuevo Laredo work together. Starting at the 1:40 mark, Salinas makes at least 2 references to the unity of Los Dos Laredos. How times have changed!

From The McAllen Monitor

EDINBURG — More than a year after Hurricane Alex swept through deep South Texas, some Rio Grande Valley school districts plan to bank on the natural disaster and require state taxpayers to help them avert budget cuts.

On Tuesday, the Edinburg school board voted 6-2 to approve a so-called disaster tax rate option, which allows districts to declare essentially any school repairs as disaster-related and worthy of millions of dollars in extra state aid.

Trustees in La Feria, Laredo, McAllen, Monte Alto and Progreso also have considered the little-known loophole, said Kevin O’Hanlon, a veteran education consultant who has advised each district as part of the Austin-based O’Hanlon, McCollom and Demerath law firm.

“On June 30 of 2010, Hurricane Alex hit the Valley. There was a lot of rain,” O’Hanlon said.
With the disaster tax rate option, local “taxpayers in the main receive no overall tax increase,” he added. Yet “it’s a significant amelioration to the cuts districts received” from the Texas Legislature.

Believe it or not: Mexico's eating US lunch in job creation

"Come on Felipay, don't go eating our lunch, man!"

From The Odessa American Online
By M.Ray Perryman

The cultural and economic ties between Texas and Mexico span centuries. Family connections, business relationships and the flow of imports and exports cement these bonds every day. Recent economic news coming out of Mexico has been relatively good, though tales of border violence have overshadowed the more favorable information on most days. Here are a few highlights about the state of the Mexican economy and its importance to the Texas business complex.

The most recent forecasts for the Mexican economy (as reported by the Federal Reserve Bank of Dallas) call for growth in gross domestic product (GDP) for 2011 of 4.3 percent. During the first quarter of this year, expansion (on a year-over-year basis) was 4.6 percent. Industrial production and exports were up recently, though retail sales slipped slightly in May. Job growth continued, though somewhat slower than the rapid pace of the first quarter.

Looking at the pattern in Mexico’s GDP over the past several years brings a couple of things immediately home. First, the recession hit very hard; second, it dissipated very quickly. The index of Mexican industrial production has topped pre-crisis levels, as have wages paid in the formal sector. The nation has added some 280,000 jobs since December.

Millions of people cross the U.S.-Mexico border every year. In fact, data maintained by the Texas Center for Border Economic and Enterprise Development at Texas A&M International University indicate that in 2010, some 14.2 million persons crossed on foot. El Paso and Laredo were the busiest, with McAllen and Brownsville also seeing millions of pedestrians. Clearly, the ties between border cities are strong, with people back and forth on foot on a regular basis. Vehicle traffic counts tell a similar story, with about 20.0 million crossings each way in 2010.

Texas benefits from close ties to Mexico through myriad channels. The ongoing strong recovery in that nation is certainly good news for the Lone Star State, and the violence that threatens to derail it needs to be addressed.

of a sudden, a slew of butterfiles

Earlier today, I was quenching my thirst the old fashioned way-drinking directly from my garden hose when I noticed something different. By different, I mean I hadn't seen this happen all summer long. As a matter of fact, I don't know how long it's been. Anyway, as the water splattered around a nearby tree, a slew of butterflies starting fluttering about, up from the grass-well what's left of it in this drought. There were probably close to a hundred of them: little, brownish-gray butterflies.

Naturally, my mind started to try to make some sense of this "new" development in my yard. Why are there now butterflies where there hasn't been any in months. Although the temperature is 107 degrees, I couldn't help but wonder if this is just another subtle clue that our weather if finally starting to change from the Dog Days of Summer. It might be wishful thinking, but there is a slight, different feel outside.

Who knows? Maybe it's all psychological. We're heading into a new month, a new school year, a new football season and so maybe It just feels different. I did notice that Adriana Arce is forecasting 109 degrees for tomorrow, then a balmy 106 for Tuesday. After that, she showed on her graph, a relatively cool 102 degrees for the remainder of the week-with a chance of isolated showers even. I guess I better go and make sure I got my chamarras and chaquetas ready. You never know, we might just stay in the 90s soon enough.