They recognize the value and can tap cheap loans from their gubmnt that the small to mid cap energy companies here cannot get from our gubmnt. Meanwhile, the US is guaranteeing cheap loans to Petrobas to drill deepwater Brazil
March 6 (Bloomberg) -- China National Petroleum Corp., the country’s biggest oil company, is seeking its first stake in the U.S. as Chinese explorers with $40 billion of cash try to join an energy renaissance unlocking billions of barrels of crude.
“We are currently studying” investing in U.S. oil, Jiang Jiemin, chairman of the state-run company, said yesterday at the National People’s Congress meetings in Beijing. Domestic rival China Petrochemical Corp. last month agreed to buy stakes in an Oklahoma field from Chesapeake Energy Corp. for $1.02 billion.
Chinese oil companies using government loans want stakes in shale fields that are fostering the most crude production in the U.S. in 21 years and helping wean it off Middle Eastern imports. They’ll be guided by the experience of China’s Cnooc Ltd., whose $19 billion bid for Unocal Corp. was blocked by U.S. lawmakers eight years ago. Cnooc last month won U.S. approval for a $15.1 billion purchase of Nexen Inc., albeit with curbs on operating the Canadian company’s Gulf of Mexico fields in U.S. waters.
Still, the U.S. Committee on Foreign Investment’s approval of the Nexen purchase will probably trigger a spurt of U.S. energy investments from China, Mirae Asset Securities Ltd. analyst Gordon Kwan said.
“The Chinese want to gain experience in shale gas, oil sands and deepwater so they can redeploy the best U.S. practices and technologies” back in China, Kwan said. “The U.S. is the frontrunner from a political stability perspective. Russia, Argentina, Nigeria could nationalize fields, while Australian assets are expensive.”
Chairman Fu Chengyu of China Petrochemical, also known as Sinopec Group, has said the Beijing-based company was looking for minority stakes to avoid a backlash from U.S. lawmakers.
China National Petroleum’s traded unit PetroChina Co. has bought stakes in energy assets in Canada, including a C$1.18 billion ($1.15 billion) purchase of shale acreages from Encana Corp. in Alberta in December
And it isn't just China throwing money at our energy sector. Companies from France, Spain, Netherlands, and South Africa have all either bought small to midcap oilers or coughed up the cash for joint ventures.