China buying Texas oil fields for $1.3 billion…

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Yantai Xinchao and a second Chinese firm will shell out $1.3 billion to purchase oil fields owned by two Texas companies. China has been gobbling up America by investing billions of dollars here. Since 2000, they have been rapidly investing their way to ownership of many industries on the U.S. landscape.

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Is this Bye, Bye Texas Oil fields?

The oil fields are owned by Tall City Exploration and Plymouth Petroleum. They border Howard and Borden counties. They are in what’s known as the Texas Permian Basin, and is only part of a LARGER deal with Chinese firms. The Permian Basin is the oldest oil field in Texas. Why do they want it? Shale extraction. And their companies are shaking their investment trees to make it work in a rocky Chinese stock market.

CNN money reported,

Yantai Xinchao shares were suspended from trading last Friday to allow for the asset restructuring and oil field purchase. The company expects shares to be halted for about one month, and plans to release periodic updates on the restructuring, according to another stock exchange filing.

According to the Wall Street Journal:

Bankers and other industry insiders say a host of Chinese firms—including some whose primary businesses are outside of oil and gas—have expressed interest in buying up energy assets in North America. The long slide in global oil prices as a result of oversupply has, in many cases, made asset prices particularly attractive.

As the fall in oil prices has rendered many prospects around the U.S. uneconomic, investors have flocked to the Permian, drawn by low drilling costs and easy access to market that make many wells still worth drilling. Exploration and production companies that focus on the region have sold more than $5 billion of new stock this year, and have been among the few energy producers able to attract demand for shares as oil has slumped below $50 a barrel.

In a research report published last week, Canadian broker Canaccord Genuity Group Inc. estimated that wells drilled in the most prolific areas can produce average annualized returns of 30% based on its commodity price forecasts. “Permian wellhead economics are the best of any U.S. resource play overall,” the firm said.

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.

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.

Energy such as the oil fields in Texas, wind farms, telecommunications, high tech firms, even American infrastructure across the country are now under Chinese ownership. The Federal government believes that opening up America for foreign investment is a good thing and will help the struggling economies of both countries.

Here’s a recent map showing Chinese investments in the United States:

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(FYI: Did you know that China now owns – 1/10 hog farms in North Carolina?)

But with more Chinese investments comes more increased concern for National Security. Chinese cyber hacking has increased. The investment into American companies allows them access to areas they once did not have.

From a U.S. Government document on Chinese investments and National security:

…The greatest potential impact on the United States could come in the form of Chinese investments in U.S. telecommunications companies. The vast global telecommunications and technology infrastructures owned or operated by these companies include undersea, terrestrial, wireless, and space-based networks. These investments would increase China’s leverage in the U.S. marketplace and beyond (even if indirectly through joint ventures and third parties) and could eventually provide China access to or control of vital U.S. and allied information, networks, or segments of critical supply chains.

Another key concern regarding the security of U.S. communication and computer networks relates to the reliability of electronics components found within the network hardware. National security vulnerabilities attributable to having critical infrastructure components manufactured, implemented, operated, or maintained by foreign actors are increasing at an escalated rate. Within government, steps can be taken to safeguard sensitive areas but at a substantially increased cost in both resources and lost opportunities to innovate. Trusted hardware and software produced domestically may cost more than commoditized products produced abroad. The government may also find that it will have to curb the infusion of ever-newer communications technologies into some especially sensitive areas in favor of retaining secure legacy technology models…

Let’s face it – Chinese investments in the United States is a risk. China is NOT America and America is NOT China, not yet anyway. With Obama in office, America’s debt has increased to over $18 Trillion. That means if you broke the debt down, every man, woman and child would owe over $61,252 for their share of the debt. Guess which foreign government owns most of the US foreign debt? Did you say CHINA? BINGO! Next to Japan, they own us! I guess that’s why Obama will continue to let them have their way with us. But do we really want China, a communist country OWNING us? That’s pretty hairy scary when you think about it. Once our enemy – always our enemy. Do you trust a communist nation like China to control most of our debt AND have the power to keep investing in anything and everything in the United States – including our oil? Do you NOT want economic freedom or energy independence? Do you not want to be in control of our OWN oil fields and energy resources and supplies? Maybe this is just another reason why Obama vetoed the Keystone XL Pipeline – I mean other than to pay back Warren Buffet for his political contributions to Obama’s campaign.

As Jack Byrnes from “Meet the Parents” would say, “Screwed again Focker”.

 

Written by Nancy Hayes

Follow on Twitter: @bodybynance

https://www.rebelmouse.com/bodybynance/

 

 

Resource:

China is Buying Texas Oil Fields for $1.3 Billion

http://www.wsj.com/articles/chinese-property-developer-snaps-up-texas-oil-fields-1445773022

About Author

Nancy Hayes

Nancy Hayes is a Digital Media Specialist and Conservative, Grassroots Activist. Over the past 4 years - she has worked on 21 campaigns nationwide. She has been involved in several key elections, including Ted Cruz for President and Herman Cain for President . She has served in such positions as Social Media Specialist, Phone Bank Director, State Director of Volunteers, and Grassroots Activist. Stay involved! Stay inspired! Stay educated! #TeamJoe #PJNET #CruzCrew #GOHTeam

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