The Obama Administration is reversing a Bush era policy of letting China own interests in U.S. natural energy resources.
Many say it is a move to keep China economically interested in the U.S. as the administration continues to run up $1 trillion dollar deficits each year, some of which is financed by borrowing from the Chinese.
The Bush administration prohibited China from owning energy resources on the grounds of national security; a sale of California-based Unocal Corp for $18.4 billion was blocked in 2007.
Beijing wants to develop economic zones in the U.S. in which businesses would be owned by Chinese and Chinese citizens would be brought in to work in these zones.
Chinese state owned oil and natural gas companies Sinopec and CNOOC are snapping up energy resources at an alarming rate since 2010:
Colorado: CNOOC gained a one-third stake in 800,000 acres in northeast Colorado and southwest Wyoming in a $1.27 billion pact with Chesapeake Energy Corporation.
Louisiana: Sinopec has a one-third interest in 265,000 acres in the Tuscaloosa Marine Shale after a broader $2.5 billion deal with Devon Energy.
Michigan: Sinopec gained a one-third interest in 350,000 acres in a larger $2.5 billion deal with Devon Energy.
Ohio: Sinopec acquired a one-third interest in Devon Energy’s 235,000 Utica Shale acres in a larger $2.5 billion deal.
Oklahoma: Sinopec has a one-third interest in 215,000 acres in a broader $2.5 billion deal with Devon Energy.
Texas: CNOOC acquired a one-third interest in Chesapeake Energy’s 600,000 acres in the Eagle Ford Shale in a $2.16-billion deal.
Wyoming: CNOOC has a one-third stake in northeast Colorado and southeast Wyoming after a $1.27 billion pact with Chesapeake Energy. Sinopec gained a one-third interest in Devon Energy’s 320,000 acres as part of a larger $2.5 billion deal.
China now out-consumes the U.S. in tons of oil, consuming 4 percent more than the U.S. in 2009.