Posted on 10/25/2015 8:30:13 PM PDT by UMCRevMom@aol.com
The Shanghai-listed Yantai Xinchao Industry Co. filed a security filing over the weekend announcing it would purchase Texas oil properties for 8.3 billion yuan. AFP/AFP/Getty Images
A Chinese investment holding company intends to put down stakes in the United States after signing a letter of intent to purchase oil properties in western Texas for $1.3 billion through a limited liability partnership.
The Shanghai-listed Yantai Xinchao Industry Co., said in a securities filing over the weekend, it was a purchasing oil lands in the Texas counties of Howard and Borden as part of the proposed acquisition of Ningbo Dingliang Huitong Equity Investment Center, according to the Associated Press.
The news service also reports Yantai Xinchao said in its letter of intent, the transaction, worth 8.3 billion yuan, has been "approved by the Committee on Foreign Investment in the United States" which is part of the Treasury Department.
The oil properties are being purchased from Tall City Exploration LLC and Plymouth Petroleum LLC, according to the Wall Street Journal.
Neither Tall City Exploration or ArcLight Capital Partners LLC, the parent company of Plymouth Petroleum, returned requests for comment by the time of this posting. We will update if things change.
The Wall Street Journal also reports Chinese energy companies have been longing to do business in the U.S. because of "stable laws governing oil exploration and production." The publication adds:
"But U.S. restrictions on Chinese investment in potentially sensitive areas means investment in the U.S. energy patch by Chinese companies is, to date, limited. Yantai Xinchao said it had already received permission from the U.S. government for the deal.
...
"Chinese companies are looking abroad for oil deals partly because of tight restrictions at home, making investment in oil-and-gas exploration and production next to impossible in many cases. State-owned oil behemoths dominate China's energy landscape, leaving little space for independent companies to invest. China's government says it aims to bring more private capital into the oil sector as part of ongoing reforms."
I agree. Do you think the Chinese would allow foreigners to do the same? I think not. Donald Trump was right on. We are led by very stupid people, or, more likely, we are led by very stupid people, who are deliberately doing the wrong thing.
Not only no....but hell, no...ping!!
No worries. The Japanese bought up U.S. real estate like crazy in the 80’s, including Rockefeller Center. They don’t own any of those properties today.
Looks like we’ll be playing cowboys and Chinese! ;)
Any “American” who makes that kind of a sale is a traitor to their country.
If Trump’s position on the issue is on the side of national security, he’ll buy the property himself. Otherwise, he won’t.
The Fed’s determine where the chi-nee buy. Catch’n on yet?
So they sell off the country county by county and force Americans to move to human habitats. Great plan.
NOW that damn Keystone pipeline’ll get built
ni hao Rita :)
www.duolingo.com
Could be a great opportunity to open a Chinese restaurant down Houston way...
Deng Xiaoping’s height is supposed to have been only about 4’ 11”. Yet he survived multiple purges and came back to become leader of China. He must have been a very powerful personality. Or maybe he was underestimated.
>> No offense but govt should forbid this purchase for national security reasons.
The govt should have also forbid Bernie Schwartz from selling U.S. defense tech, but it didn’t.
True, now they will be pouring money into lobbyists to repeal the ban on oil export laws. They probably were already.
Recently there was a FReeper that mentioned how he had met Deng and his wife and they were very cordial... I should go look... maybe I am thinking something else. Nah! It’s almost 3:30 a.m. and 8 ought to try and fall back asleep.
Just as 100American said, they cannot cut the land out and haul it back to China, nor is the technology being used something that isn’t already out there in the public domain.
When the Japanese bought all sorts of companies and properties in America, most of them failed and had to be sold back to Americans for bargain prices (think Rockefeller Center and Hollywood). The Chinese will probably have the same problem, their managerial style will not play well over here, the oil glut will kill their investment, etc. Then they will sell it back at a bargain.
There are FReepers here who work in the oil industry calling for the repeal.
No worries. The Japanese bought up U.S. real estate like crazy in the 80’s, including Rockefeller Center. They don’t own any of those properties today.
Yep, the Chinese will get screwed. US oil is banned from being exported. So it basically will be US workers pumping US oil, for US markets, paying US oil taxes, run by basically the same Texas oil operators who have been doing this for decades, except the land and mineral rights will be owned by a Chinese holding company.
Texas oilmen have been doing this for generations. They'll run rings around the Chinese company during contract negotiations, leaving it high-and-dry and 100% exposed to any loses in a highly volatile market, while the Texas extraction outfits will use creative accounting and other gimmicks to run up their expenses as high as possible. They'll be laughing all the way to the bank.
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