The Chinese know how to drill oil wells. They've got thousands of them. Unocal does not own something they can't get elsewhere, if we tell them to take a hike. If we won't sell them oil we own in SE Asia, then they will have to buy more Venezuelan oil or Mexican oil, or ME oil to make up the difference. And they will be bidding against us when they do so.
They are willing to pay us a premium for this oil, and the reason, I suspect, is that it's close to China, so the transportation costs are lower. We can import our oil form SE Asia, at great cost to us, and make them import from Venezuela at great cost to them. Or we can import from Venezuela at lower cost to us, and let them import from SE Asia, at lower cost to themselves.
We'll both be better off.
If you take your logic to its conclusion, then why stop at Unocal? Why not ban every American oil company from selling to China? In fact, why not ban every American from selling oil to anyone? After all, we need, that oil, don't we? Why let it slip out of our hands?
I'll concede to your knowledge on this subject. Seems like we are outsourcing and selling off America, I just hope it doesn't come back to bite us in the ass.
I think I heard somewhere that Venezuelan oil is not good quality