Bakken, North Dakota Oil fields
China is investing billions for its strategic oil supplies. It just not trust that OPEC and Russia will keep the oil steady and firm.
It is thus on an investing spree for the shale gas in North America and elsewhere in the world.
Why is it keen on Spratly? It has proven oil reserves that is bigger than Kuwait and many Filipinos know this. The Chinese exploration co. knows this...
Spratly sits on rich oil reserves: 3.4 trillion cubic feet of natural gas and 440m million barrels of oil.
Now you know....Spratly's remain an issue because of rich oil reserves
From: Energy and Capital <eac-eletter@angelnexus.com>
Date: Tue, Jul 31, 2012 at 10:47 PM
Subject: China is Stealing Your Oil
| |
China is Stealing Your Oil
By Keith Kohl | Tuesday, July 31st, 2012
We don't hold much faith in politics here at Energy and Capital.
And that's especially true when an energy plan is involved.
We've heard promises of energy security and ramblings on becoming energy independent from every president since Nixon...
Unfortunately, the red tape is wrapped so quickly — and so thickly — around these policies, it's not often anything makes it from the planning stage to the actionable stage.
A good example: The bickering taking place over the Keystone Pipeline expansion, never mind the fact that there are already 2.3 million miles of oil and gas pipelines crisscrossing the United States.
How many times in the past year have we seen politics play a decisive role in some new project? It's enough to give anyone a headache.
Today I want to take a look at a real approach to energy policy. It's a plan that puts ours to shame.
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That technology is here.
Not only that... Companies are already using it to increase production as much as 1,000%!
A Real 'All of the Above' Energy Plan
China accounts for more than 20% of the world's global energy demand.
As you may know, the Middle Kingdom surpassed the U.S. to become the world's biggest energy consumer in 2009. Today the race is still neck and neck.
And if the market has grave concerns over slower growth in China, somebody might want to tell China that...
China's growth is the main reason the country is so interested in securing its future energy supplies. And nothing is off the table for them — including outrageous plans like mining the moon for helium-3.
Luckily, China's real targets are much closer to home. Back when Eni released its Oil and Gas Review 2011, we saw how quickly they were catching up to U.S. oil consumption...
Do you think China is dumb enough to trust in OPEC to keep them well supplied?
Can we really expect them to continue getting gouged by Russian fuel exports?
The answer to both these questions is a resounding 'No.'
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To learn more, simply click here.
China's Energy Race Heats Up
To say that China is buying up our future energy supplies would be a gross understatement.
Over the last few years, we've seen this time and again through their strong merger and acquisition activities.
Things are heating up with two of China's latest deals: CNOOC's $15.1 billion buyout of Nexen and Sinopec shelling out $1.5 billion for Talisman Energy's stake in the North Sea.
Hey, if you can't beat 'em, just throw a lot of money around, right?
What's interesting here isn't so much the amount of cash that China spent, but rather where they're spending it... Not only are they dishing out billions of dollars in the North American shale boom — but they're more than willing to go anywhere for these resources.
In one fell swoop, CNOOC picked up operations in the North Sea (Nexen was one of the leading producers in the UK North Sea), the Canadian oil sands, and the rich shale gas resources in British Columbia.
We've known for a long time this deal was in the making. China's newly acquired operations in British Columbia's Horn River Basin is a precursor for the LNG exports that will soon be sent across the Pacific.
So, what's next on China's agenda?
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MIT scientists, top stock analysts, and power companies agree: This technology is about to shake up America's energy future — launching one firm's share price several thousand percent in the process.
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Oil Off the Radar
Here's a little-known fact about these buyouts: Sometimes it's not just the new oil fields the buyers are after.
Truth is the Chinese are also benefiting by gaining access to the technology being used to reach these new oil resources.
Take their interest in the various U.S. shale plays, for instance. The real prize isn't production, but rather learning how to extract the oil and gas from the shale formations.
Believe me, dear reader; it's no coincidence the Chinese are spending billions of dollars here while trillions of cubic feet of natural gas lie trapped in Asian soil.
The next leg of this energy race may not come from new, huge oil field discoveries — but rather from pumping oil we know is already there.
Don't forget that conventional drilling methods can only produce a small percentage of the total resource. (In the United States alone, there's an estimated 430 billion barrels that are still obtainable.)
The biggest boon for China will be the technology to produce the billions of barrels that are currently unattainable using today's techniques...
My colleague Jeff Siegel's latest investment report highlights one technology that's showing groundbreaking results in reaching this abandoned crude.
The best part is that this energy stock is still flying under Wall Street's radar — for now.
Just imagine what will happen when China catches wind of this technology and starts digging around in its deep pockets...
Until next time,Keith Kohl @KeithKohl1 on Twitter
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
The Bottom Line
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