China will take over full ownership over a Canadian oil sands project for the first time after Athabasca Oil Sands Corp announced Tuesday it sold the remaining 40 percent of the MacKay River oil sands development to PetroChina for US $673 million. The deal continues a trend that has seen China's state-owned oil companies invest billions of dollars in exploration or production ventures in Canada, Africa, Latin America and elsewhere.
Elsewhere is another way of saying the United States, as this other bit of news suggests:
Showing that it isn't worried about the upswell of angst over hydraulic fracking technology, the Chinese government, through state-controlled Sinopec, today struck a deal with Devon Energy to buy into five prospective new exploration areas in the U.S. The deal, which includes $900 million in cash upfront and a promise of $1.6 billion in the years ahead to cover drilling and development, gives the Chinese a 33% stake in five of Devon's fields, and a front row seat to what is effectively the second wave of development of U.S. shale assets. The areas in question include the Tuscaloosa in Louisiana, the Niobrara in Colorado, the Mississippian in Devon's home state of Oklahoma, the Utica in Ohio and the Michigan basin.
The second wave? Does that mean it washes over us irrespective of the fight over the Keystone XL pipeline? Has anybody told environmentalists this? And what about climate activists? Who worries you more at this point: Mitt Romney or China? Oh, Never mind. Back to that second wave, and how it's being funded from Chinese cash, see this 2011 must-read from Jonathan Thompson. He writes that, over the last decade,
China has emerged as one of our biggest customers; U.S. exports to China have increased 460 percent since 2000. Compared to British, Canadian or Australian multinational corporations, Asian companies still have a minuscule investment in Western resources. But over the last year, as much of Asia scrambles out of the global recession unscathed and the U.S. continues to wallow, Chinese, Indian and even former Soviet-bloc companies have bought into American oil and gas fields, molybdenum mines and more.
The story of fossil fuels as a much sought after global commodity is the big climate story that climate-concerned activists and bloggers willfully ignore.