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Home > China’s Purchase of US Fracking Firm Comes With Advanced Technology

China’s Purchase of US Fracking Firm Comes With Advanced Technology

With the US presidential election on Tuesday, both candidates vow a get-tough approach on China, the need for reducing the federal deficit, and more drilling for natural oil and gas in US borders. With so much encouragement from political leaders, hydraulic fracturing to extract oil and gas is highly competitive in the US and profits are in decline. So many holders of oil and gas leases hope to unload their properties, and China is waiting in line. China’s Lanzhou Haimo Technologies Co has expressed interest in buying a stake in Texas-based Carrizo Oil & Gas. Under the deal, the Chinse firm would acquire 6000 acres with infrastructure, reports John Daly for OilPrice.com. He argues that the intention behind the purchase is not the small bit of fuel, but rather to access infrastructure and technology. The US is a leader in hydraulic fracking and China wants to follow the US lead in this area. China has an insatiable demand for fossil fuels, which continues to drive demand and hike global energy prices. Daly reports that he expects the sale to be approved with few questions asked. – YaleGlobal

China’s Purchase of US Fracking Firm Comes With Advanced Technology

Competition in energy sector has reduced profits; companies with US oil and gas leases want to dump holdings – and advanced technology – onto China
John Daly
OilPrice.com, 5 November 2012
Click here for the article in OilPrice.com.

Dr. John C.K. Daly is the chief analyst for Oilprice.com, Dr. Daly received his Ph.D. in 1986 from the School of Slavonic and East European Studies, University of London. While at the Central Asia-Caucasus Institute at Johns Hopkins University's Paul H. Nitze School of Advanced International Studies, where he is currently a non-resident scholar, in 199 he founded The Cyber-Caravan, which continues today under the title, The Central Asia-Caucasus Analyst. He subsequently served as Director of Programs at the Middle East Institute in Washington DC before joining UPI as International Correspondent.

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