Thursday, November 1, 2012

China’s Purchase of U.S. Fracking Company will give it Advanced Technology

As the U.S. ramps up to its presidential election, both Republican candidate Mitt Romney and incumbent President Barack Obama have increasingly made a “get tough” approach with China a part of their campaign platforms.
On 25 October, in front of a rapturous audience, Romney told supporters in Ohio, “Look, we can compete with any nation in the world so long as we’re playing on a level playing field. And I’m going to make sure China doesn’t cheat.”
President Obama, during his third debate with Romney on 22 October said, “With respect to China, China is both an adversary, but also a potential partner in the international community if it’s following the rules. So my attitude coming into office was that we are going to insist that China plays by the same rules as everybody else.”
But one item the pair apparently agree upon is that Chinese investment in most American industries is a good thing, so it should come as no surprise that on 26 October
China’s Lanzhou Haimo Technologies Co. announced that its subsidiary Haimo Oil & Gas LLC will buy a 14.29-percent stake in Houston-based Carrizo Oil & Gas's Niobrara shale oil and gas assets in Colorado for $27.5 million.
Under the terms of the deal, Lanzhou Haimo Technologies Co. will acquire roughly 6,000 acres, or about 210 square miles, of territory located primarily in Colorado’s Weld and Adams counties in as well as associated infrastructure, including oil and gas wells, according to a statement filed to the Shanghai Stock Exchange. Carrizo, which holds approximately 60,000 acres in the Niobrara basin, currently produces 1,850 barrels per day (bpd).
So, what is Beijing’s covertly cunning policy in making such a purchase?

Read more: http://oilprice.com/Energy/Energy-General/Chinas-Purchase-of-U.S.-Fracking-Company-will-give-it-Advanced-Technology.html

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