Jerome Corsi Says That China Is Taking Over The U.S.
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Published on Feb 6, 2013
The Obama administration is quietly allowing China to acquire major ownership interests in oil and natural gas resources across the U.S.
The decision to allow China to compete for U.S. oil and natural gas resources appears to stem from a need to keep Beijing economically interested in lending to the U.S. The Obama administration has run $1-trillion-plus annual federal budget deficits since taking office that likely will continue in the second term.
Allowing China to have equity interests in U.S. energy production is a reversal of the Bush administration’s policy. In 2005, the Bush administration blocked China on grounds of national security from an $18.4 billion deal to purchase California-based Unocal Corp.
As WND reported Monday, Beijing has been developing a proposal in which real estate on American soil owned by China would be set up as “development zones” to establish Chinese-owned businesses and bring in its citizens to the U.S. to work.
China leased first oil rights in Texas
China’s first major move into the U.S. oil and natural gas market can be traced to October 2009, when the state-owned Chinese energy giant CNOOC bought a multi-million dollar stake in 600,000 acres of South Texas oil and gas fields.
Reporting the story, Monica Hatcher of the Houston Chronicle suggested China was “testing the political waters for further energy expansion into U.S. energy reserves.”
China’s purchase of U.S. oil and natural gas rights will strike millions of Americans as paradoxical, since the U.S. continues to be a net importer of approximately 60 percent of the oil consumed in the U.S.
The Chronicle reported China paid $2.2 billion for a one-third stake in Chesapeake Energy assets, with CNOCC laying a claim to a share of energy resources in South Texas that could produce up to half a million barrels of oil per day.
The Houston paper reported that as part of the deal, CNOCC agreed to pay approximately $1.1 billion for a share of Chesapeake’s assets in the Eagle Ford, a broad oil and gas formation that runs southwest of San Antonio to the Mexican border.
The Chronicle also reported that the deal with China could create as many as 20,000 jobs in the U.S. and provide the capital Chesapeake needs to increase its rig count in South Texas from 10 to 42 by the end of 2012.
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