Ping.
Texas Ping.
No offense but govt should forbid this purchase for national security reasons.
Hecky Durn.
Let them have it. If they do anything we don’t like, nationalize it and take it back.
Ongoing reforms, my aunt fanny. The Chinese government is as rapacious as it always was with any money going to the big shots, NEVER to anyone else.
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.
NOW that damn Keystone pipeline’ll get built
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.
I’m in the oil and gas business and live in Howard County, we’ve got just under 50 sections in Howard, Borden and Glasscock county. We own and operate wells in all these counties plus hold minerals on an additional 180 sections in said counties. This is just a buy out of existing production, neither the minerals or the surface is being purchased. No different that what we did north of town on 8 sections that we own both the surface and minerals on. We drilled 14 wells total and operated them for 4 years then sold them to Chesapeake. We still own the land, minerals and receive royalties from these well’s and 22 others that they have drilled since. The big money to be made is in the first 1 1/2 years then the production falls off considerably. out best well up there made averaged over 300 barrels of oil per day and around 250 mcf gas per day for the first 6 months. it had dropped to 35 oil and 62 gas within 2 1/2 years.
The Chinese government is engaged in an ongoing process to erode the value of its own currency in a desperate attempt to stimulate its economy. Anyone in China with an IQ over 70 and a lot of Chinese cash is going to do whatever is necessary to buy foreign assets like this, because their own money isn't worth a damn.
Cheasapeake already sold out holdings in the Eagleford to the Chicom WITH Obama approval. The interest is in the southern part of the Eagleford.
My understanding is that the nat gas is being liquified and shipped to China along with the oil
I’m split on it happening myself. Oil is fungible, when it comes out of the ground from here it employees a lot of people and keeps the economy running, it also cuts into the middle east production which is a good thing. Yes the end profit goes there but most of it does stay here, unlike say what most of Walmart sells. Smart money says a lot of that profit will be reinvested in our free market now as well, so that also is a plus.
The land itself is not worth much to be honest, certainly at the price they paid. Only the oil makes it have any real value. We can control that easy enough if we had to, they still have to get it to the refinery and distributed from there. Hell, a wink and a nod to OSHA alone can cut profits and production enough to ruin their day.
It’s real estate, they can’t take it with them when they go or we throw them out. Eventually it all gets our flag planted on it again one way or another.
The U.S. has long been a desired destination for Chinese energy companies, owing to stable laws governing oil exploration and production. But U.S. restrictions on Chinese investment in potentially sensitive areas means investment in U.S. energy by Chinese companies is, to date, limited. Yantai Xinchao said it had already received permission from the U.S. government for the deal.
The latest deal reflects how Chinese companies are looking to new industries beyond China’s borders to profit, as domestic demand for everything from cars to real estate slows alongside a weakening economy.
In another case last year, Chinese gold retailer Goldleaf Jewelry Co. acquired Texas-based energy firm ERG Resources LLC for $665 million.
http://www.wsj.com/articles/chinese-property-developer-snaps-up-texas-oil-fields-1445773022
Anything that HELPS OTHER COUNTRIES WHILE HURTING THE U.S., 0dunga is all for it!