Chinese Buying Up Texas Oilfields

From Conservative Firing Line:

Oil Field in Texas

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.

The oil fields are owned by Tall City Exploration and Plymouth Petroleum, and are located in Howard and Borden counties in what’s known as the 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.

Permian Basin

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.

Their oil field investment has already been approved by the United States Committee on Foreign Investment.

The iconic Waldorf Astoria Hotel in downtown Manhattan – owned by a Chinese Company from a $2 Billion deal. Chinese investors are snagging  other such “trophy properties” across the country in upscale areas.

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.

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.

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The Permian Basin has enjoyed a revival as shale gas exploration and other drilling technology, such as fracking has improved. Borden and Howard counties are just two counties in a huge basin area of exploration, but I still don’t like the idea of China owning a piece of Texas, or any part of the US for that matter.

Tall City Exploration recently had a large infusion of money in the amount of $200 million from Denham Capital, an investment company that focuses mainly on oil and gas. Plymouth Petroleum is another LLC that acquires and develops oil and gas properties in the Permian Basin of west Texas and southeast New Mexico.

Each of these companies has other offshoots with half a dozen other holding companies, as do many oil exploration companies in the basin. Much of what they do is buy and sell properties and then lease it to other companies to work the fields. For my nickel, the bad guy in this scenario is the US Foreign Investment Committee for allowing China to buy up our property including the mineral rights. But I’d imagine their slice of the pie is substantial enough that they don’t care who owns it.

The Rhodium Group tracks Chinese acquisitions in the US and they’ve compiled this map that shows the purchases by state and in what industry. Click here to go to the interactive map on their site.

Rhodum Group map (2)

~Kathy

(h/t Hardnox)

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10 Responses to Chinese Buying Up Texas Oilfields

  1. vonMesser says:

    So, how long before they start evicting Americans?

  2. I.R. Wayright says:

    How long before we start evicting them and appropriating their holdings?

    • Kathy says:

      That’s not likely to happen because most people just see the dollar signs and don’t have a problem with where the buyer comes from.

  3. CW says:

    Scary map, Kathy. Wonder if Trump has seen it?

    Don’t worry though because we’re going to have the last laugh when the Chinese find out that wind power is really where it’s at.

  4. captbogus2 says:

    I thought Kilgore or Beaumont were older oil fields.

    • Kathy says:

      I wasn’t too sure about their statement about the Permian Basin either, Buck, because I’d always heard that Corsicana was the oldest, going back to the 1890s and Beaumont, aka, Spindletop was a bit later. Supposedly it goes back to the early 1900s while the ones in the Basin were a bit later. Either way, we don’t need the Chinese over here in the oil business and buying up property.

  5. Blessed B. says:

    The paper money that the US sent China for their interest payment on the loans procured by Obama just got spent on buying these oil fields…..

    Bet the oil from these fields will not be used in America but sent to China for their domestic use! Bet there will lots of Chinese workers also coming in to work there.

    The US will never see a dime of taxes on it either! They’ll sell it at a loss for US tax purposes.

    I guess it’s probably better if China buys these oil fields with the monies provided by the US rather than China coming in and just taking over all of Texas as a loan payment.

    • Kathy says:

      Oh no doubt, BB, bought with our money, then they’ll send every drop back to China, but I doubt Chinese workers will be seen on any of the leases. I just don’t see them as being exactly cut out for this kind of work. Most of the guys working on the drilling rigs are a special kind of crazy.

  6. Uriel says:

    Between the Russia, Saudis and Chinese most of the productive fields in many states have been forfeit. Here like most countries we should have (to an extent do have) brakes on foreign ownership BUT since Clinton have deliberately ceded that to the trash can