Think About This -
Greatness is achieved by what we overcome, not what we accomplish
Everybody knows that Barack Obama wants America to be energy independent; just ask him, and he’ll tell you so. What he won’t tell you is why he is standing by and watching while China is buying American oil and gas in alarming amounts. In an era that demands America use energy as wisely as possible, Obama is stopping us from searching for energy sources on our own soil, which is bad enough, but now Obama is allowing the Chinese to buy up as much of our oil and gas as they want.
Using two front corporations, the China National Offshore Oil Corporation and the State-Owned Assets Supervision as well as the Administration Commission of the State Council, the Chinese Communists have entered into a $570 million deal that gives it a third interest in an oil and gas field in Colorado and Wyoming. What’s worse is that language in the agreement has given the Chinese government the right to a third of ANY NEW oil or gas discovered in areas encompassed by this energy site.
Aside from having their tentacles in Colorado and Wyoming, other states where China has a sizable presence are as follows:
Louisiana – a $2.5 billion deal for 1/3 of a 265,000 acre energy field. China did likewise in buying a one-third share of a Michigan energy field.
The Chinese Communists have acquired a one-third share in energy producing fields in Ohio – Utica Shale field.
Oklahoma has them as well. The Chi-Coms own 1/3 of a 215,000 acre field based on a deal with Devon Energy.
In Texas, China owns 1/3 of the 600,000 acre Eagle Ford Shale energy field, and they own a small piece of the energy producing sections of the Gulf of Mexico.
What’s happening here is very obvious. The Chinese are Barack Obama’s loan shark. He can’t begin to pay them back what he has borrowed from them, so they are willing to take oil deals in partial payment. After all, he can’t give them the deed to the Grand Canyon – can he?
Obama THE WORST THING TO EVER HAPPEN TO AMERICA
It’s quite important to remember that it is against the law to export oil extracted from the US mainland, regardless of who owns the rights to the resource.
It is not against the law to export the end products derived from oil — and US-based refiners have been doing that to their heart’s content for decades…so much so that we are now a net exporter of refined products. Whatever your point of view, it is a fact that this market movement is not a function of federal energy policy, it is a function of the economics — just ask any of the refiners themselves. It is simply more profitable to ship diesel to Europe and many other places than to sell it here. Demand has fallen here in the US, and we have more than enough refining capacity to serve our own needs. California, long an importer of gasoline, now exports it from time to time, which is about as dramatic a turnaround as one can imagine (California is the third largest gasoline consumer in the world, after China and the entire U.S.) — if California is exporting, you know demand has fallen off a cliff.
(I recognize that the state will suffer temporary supply trouble because of the Chevron refinery fire, but this is an event-specific problem).
As an added bonus, exporting fuel (especially diesel) tightens supplies in the US and boosts prices here. That manufactured price increase to diesel represents a tax on all consumers because the fuel price gets passed through on every item that’s shipped by train or truck, every farm and construction site that uses diesel-powered equipment, and every business that uses diesel-powered machinery, and so on.
This is all legal and it is what shareholders expect them to do — look out for their interests, even if it saps the US economy and slaps higher prices on consumers throughout. If you want to blame someone for “domestic’ resources not staying domestic, I think you need to look to the companies doing the exporting.