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Why Is The Obama Administration Allowing The Chinese Government To Buy Up U.S. Oil And Gas Deposits Worth Billions Of Dollars?

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?

  • Virginia

    For one thing, the Chinese have the dough and we are here drowning in debt up to our necks. We have been taken down a path of no return by unsound financial practices and the Chinese feel we are a good financial risk for them to take and why not. The real estate here is pretty nice and dirt cheap right now, the natural resources are bountiful and the Chinese are looking to expand their global market share. What better place for them to do it. We are on our knees right now begging (as is Europe) and the Chinese like what they see here in America, cheap real estate, oil and gas. The Chinese are practical people. They do not engage in senseless wars.

  • mondobeyondo

    BANZAIIII!!

    — oh wait, that’s a Japanese word.

    Please don’t start WWIII over this tiny little issue…

    (For those who are, um, history deficient… the Chinese and Japanese historically hate each other. The “rape of Shanghai” by the Japanese in 1937, is an excellent example.)

    • http://www.vdare.com VW

      Shanghai? I think it was Nangkin…

  • Bob

    obama has and will keep selling this country down the tubes till there is nothing left, then he will allow america to buy the oil back from china for TRIPLE! How can you beat that? What a guy! That proves he really does loves amerika and here I thought he really hated this country!
    I guess I 0we him an apology? Sorry! Great One! You really do love amerika. You have done the us such a service. Killed most of our jobs and you’ll finish on your 2nd. term (***************) gave all our property to china and incorporated Agenda 21 (soros), gave china all our energy and if we are really nice we can beg them to buy some of it back for triple the price. Gave the UN control over all our food. Collapsed the Dollar and gave what is left to the rest of the commies. Welcome to a third world country and it only took obama alittle more than 4 yrs. And guess what The american big thinkers still love you.
    Which proves that STUIPIDY is alive and well in amerika.

  • mark

    I do not think that the US government should be able to lease our oil resources that the taxpayers own to any corporation period. Why should we lease these resources to corporations that really are global companies. Since we already own the oil, why not contract with private compainies to develop the oil to a finished product and then sell the product on the marketplace. Remember I suggest private companies and not government workers. We as taxpayers would reap the benifits of the profits going into the Treasury instead of to the Chinese or other global corporation that could care less about our people. The royalties are chump change compared to the profits that should belong to the taxpayers.

  • Laura

    Obama has been hell bent on crushing Americas economy since he took office and this is just another stab in the back from Obama and his thugs occupying our White House.

  • As it IS

    Perhaps Obama is using his “messiah” complex hoping for a miracle when our dollar collapses and perhaps the Chinese won’t bomb the shit out of us! They’ll just continue wanting to build cities like the one they’re planning in MI. Looks to me like the MAN is scared of a few chinese to me!!

  • Kevin

    From a geo-political perspective it’s damn near brilliant. China takes the bait and buys oil in the US. The US receives recirculated petro dollars. The US controls the supply valve. If China threatens the US or an ally we can curtail the supply of oil. China cannot quickly obtain another source.

    Does anyone believe oil contracts will be honored in the event of hostilities?

    • Robert

      Brilliant. Shhhh. don’t tell the Chinese government.

    • Aussie

      With Obama’s executive order, Nobody owns anyting when TSHTF.

      • Maxx

        Actually “Aussie”

        That Executive Order does not even need the catalyst of TSHTF. It would actually take very little for the order to be invoked. Kinda scary.

  • fairguy

    stop whining about it and vote in the only american who can save u guys, ron paul. Other candidates are just puppets to the big corps and you will get the same old same old, democrat or republican.

    btw, i’m not an american.

  • fairguy

    kevin, u r not a smart amerikan. Your gov’t is controlled by the big oil, big pharma, big food corps. If u cut back oil production from companies that china owns some portion, these big oil loses money. I can tell u this will not happen. War is a profit racket, great for big oil, big pharma, big military, big healthcare and big food corps. That is why US involve in so many wars, mo money for the elites.

    btw, i’m not an amerikan.

  • Georgiaboy61

    Re: “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.” Actually, it makes complete sense if you view Obama’s actions with the following assumptions in mind: (1) Obama does not “love” America or wish it well, at least not in the sense traditional Americans do (2) Obama’s agenda isn’t the restoration of American greatness, but its dismantlement (3) Obama took power via what may fairly be called a bloodless coup d’etat, and thus far, his actions are consistent with those of a would-be dictator (4) Obama’s provenance is murky, to be charitable; it should not be discounted that Obama was sponsored by one or more very wealthy and powerful patrons with an agenda contrary to that of ordinary American citizens, i.e. such as the Saudi royal family, George Soros, Chinese or Russian interests, etc. (5) Obama has made substantial progress, but has had to maintain the veneer of being moderate, for political purposes. That mask can be discarded if he wins term two.

    In short, what is happening is precisely what Obama and his allies have sought….

    • Gay Veteran

      well I’m curious as to how “Obama took power via what may fairly be called a bloodless coup d’etat”

  • JL

    Yes, China has the dough right now and is exchanging their surplus us dollar for assets around the world. But it is not really China’s fault that we have the biggest trade deficit with them. It is just poor management on the US side. If it wasn’t China, it would have been japan, germany, russia, or any other country that we have a big trade deficit with. US need to gets its act together and vote for politicians with common sense instead of idiots who would sell you for a buck to the “lowest bidder”. Yes, lowest bidder.

  • moose

    Obama is at a minimum either an idiot OR sly as a fox. He also is a Socialist and a Commie Lover. Everyone should remember this in NOv. and vote this Commie lover out of office.

  • http://www.truthstreammedia.com Melissa

    I’d say this:

    “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.”

    …has something to do with it. They are buying up banks and land (in Michigan) too.

  • Gary2

    I’m a big believer in capitalism. I’m also a big believer in
    fire.

    They each do one thing, and only one thing, without concern
    for anything else.

    When controlled properly, they both offer enormous benefits.

    When uncontrolled, they consume everything in their paths
    leaving behind nothing but scorched earth and ruined lives.

    The difference is that no sane person spends a moment arguing
    that we should remove the controls on fire, or idolize and reward arsonists.

    • Gary2

      opps–this was copy/paste from on point radio forum

    • Kevin

      Gary2

      That is one great analogy.

  • JOHN IN PHILADELPHIA

    CHINA HAS DEMANDED THAT THE U.S. ALLOW THEM TO DO THIS OTHERWISE THEY WILL DUMP OUR TREASURIES AND CRASH OUR ECONOMY.

    CHINA HAS ALSO TOLD THE U.S. TO STOP THE DOLLAR FROM DECLINING ANY FURTHER BECAUSE IT HAS BEEN CAUSING INFLATION IN THE CHINESE ECONOMY FOR YEARS AND THE CHINESE HAVE HAD ENOUGH. THE U.S. WILL COMPLY WITH THIS DEMAND ALSO OR (YOU GUESSED IT) CHINA WILL DUMP TREASURIES EN MASS AND CRASH OUR ECONOMY.

    CHINA IS IN CONTROL.

  • JOHN IN PHILADELPHIA

    ANYONE MAY REPLY TO THE FOLLOWING QUESTION: WHAT DOES IT MEAN TO RECEIVE A RETURN MESSAGE STATING THAT : “YOUR COMMENT IS AWAITING MODERATION”

    I RUN INTO THIS OFTEN.

    THANKS: JOHN

  • packingglock

    O is an idiot.he wants to strip America of everything it could possibly have to defend itself, our gun rights, our freedom they themselves break all our constitutional rules. He cares nothing for it. He cares nothing for America or the sacrifices that was already made for us to live as free people. The time will come wen we the people will have to decide to keep America free or let her be bound to slavery.let every man be armed.God bless this beautiful country.

  • REED RICHARDS

    This is precisely the point. The Asylum States is not trying to become “energy independent”. That is simply one of many myths the fraudsters in government feed to the masses to keep them compliant and obedient and voting against their social, economic, and political interests.

    The goal is to make the 99 percent wards of the state. Check out the increased enrollment for disability benefits. The 99 percent are going to be nothing but wards of the state. This will be done by either A. Debt servitude in the form of student loans, liars loans for housing and ballooning auto loans B. Fear factor of anyone who is not “amerikan” is therefore a terrorist and must be treated accordingly and C. Violence against anyone who defies the first two methods of command and control by either speaking out against them or engaging in civil disobedience. At that point, you will either be jailed forever or simply killed if the mood warrants it……..

  • http://eyesonwashington.com Aaron Cantor

    Somebody calling themself “mondobeyondo” referred to the rape of Shanghai in 1937 by the Japanese, but perhaps you being to young to have been around at that time should go back and read a history book.
    It was “The Rape of NANKING” in 1937.

  • edward

    American will sell out to the highest bidder. Obama is selling us out, but this was going on long before he came around. America has lost it morals, values and integrity. Its citizens only care about entertainment. sitting back and having a good time with there head in a hole like a ostrich. American people don’t care long as they can have big house, fancy cars, flat screen televisions, ipods, etc. America will be a third rate country. Down the drain, because of there greed and stupidity, makes me SICK!

  • Piglet

    [The United States desperately needs to maintain control over its own domestic energy resources so that we can end our addiction to foreign oil.]

    Even if the US was completely energy independent now, nothing would change. The point of our wars in the Middle East is not to get oil for the US, but to control the flow going to other countries, thereby controlling their economies. Unlike the Roman Empire, the American Empire need not invade and occupy everywhere. It only needs to be able to exert influence to get what it wants, and controlling oil flow works very nicely. (By the way, we could significantly reduce our dependence by cutting way back on empire building. The biggest oil consumer in the world is, of course, the worldwide US military.)

    [But apparently everything is for sale in the United States today, and that includes our precious energy resources.]

    When you owe your creditor major bucks, this is what happens. You find yourself in a position in which you can’t say no. As a drug dealer said to Jason Statham’s character in the film titled Crank, “This s*** ain’t free.” Neither is all that money we’ve been borrowing. Did we really thing we could borrow trillions and not find ourselves under duress from creditors just because we’re The Big Bad USA? That we’d just borrow more and more, and without consequences? We’ve been too busy expanding the empire and fighting wars to understand that the rules have changed and that we’re well on our way to being broke and bought up.

  • yenor galazio

    The US will not need to be invaded to become a third country like Greece. They will be destroyed by the end of the petrodollar

  • http://FACEBOOK DAWN

    YOU HAVE GOT TO READ THIS, IT IS THE LAST STRAW!

  • A concerned young AmeriCan Patriot

    “And I’m proud to be an American, where at least I know I’m free.” Does not seem that the above statement will hold true under the current administration, if they get term two. “It is easy to stand bye and watch as things go rolling along, but difficult to intervene, and that is why those who put a stop to tyranny shall be among the strong.”

    As Patrick Henry said “Give me LIBERTY, or give me DEATH!”

    • A concerned young AmeriCan Patriot

      *I believe it was Winston Churchill who said something like quote two. Feel free to correct me.

  • http://www.truecapitalism.org Donna Quanrud

    Here is a great website with timely information – read this article entitled China:Friend or Foe?

    http://truecapitalism.org/china-friend-or-foe/

  • ng

    Obama is more a Fascist than Communist

  • ken

    Yeah this is bib big trouble. Its very suspicious. I think the Obama admistration is China’s puppet.