Posts tagged “CNOOC”
In a word – yes.
Last week the President issued an order requiring Ralls Corporation, which is owned by Chinese nationals (and is closely associated with the Chinese wind turbine manufacturer Sany), to cease development activities and divest its interest in four wind farms in Oregon. The order was issued based on recommendations from the Committee on Foreign Investment in the United States (CFIUS). CFIUS is responsible for reviewing foreign investments in the U.S. to ensure that foreign ownership of U.S. assets will not present a national security risk.
In last week’s Energy Trends Insider our featured stories were Why China is Dipping Their Feet in the Canadian Oil Sands, CNOOC’s Purchase of Nexen May Signal New Wave of Consolidation, and Subscriber Questions on Lanzatech and Butanol. As we have done previously, we would like to share one of those stories with regular readers of this column. Interested readers can find more information on the newsletter and subscribe at Energy Trends Insider.
Why China is Getting their Feet Wet in the Oil Sands
Over the past two decades, Chinese oil consumption has quadrupled to nearly 10 million barrels per day. For the past decade they have been on a growth trajectory which has shown signs of slowing, but could nevertheless see them overtake the U.S. as the world’s top oil consumer by the end of the decade. As I have written before, I believe China’s economy will be the single-biggest long-term driver of oil prices over at least the next 5-10 years. CONTINUE»
Different Situation Than Attempted Takeover of Unocal in 2005
Last week, the China National Offshore Oil Corporation (CNOOC) tendered an offer to buy Nexen, a smaller, independent Canadian oil company for $15.1 billion. The deal has been approved by Nexen’s board, and the price premium of 61% above the previously-traded share price should be enough to win-over Nexen’s shareholders. It still must pass scrutiny from the government of Canada, and of the United Kingdom and the United States, where Nexen has many reserves.
CNOOC had attempted a takeover of the American oil company Unocal in 2005. Then, a hostile response from the public and Members of Congress forced them to pull-back. Now, however, regardless of some opposition from within the U.S. Congress, the betting is that this deal will pass muster. The opposition in Congress is mostly from the usual suspects like Senator Schumer and Congressmen Markey and Forbes, who are using this as an opportunity to push other issues they have, like market access to China for American exporters or lease rates in the Gulf of Mexico.