While it is cheap: China buys US oil companies

Texas fears losing oil-rich lands amid China's buying up of weakened US oil companies. This is reported by the American television channel Fox Business, citing the opinions of experts and officials.

Falling prices have led to chaos at Texas oil companies, which are struggling to avoid a wave of bankruptcies. Now they have become absorption targets for competitors from China and other countries. According to the international law firm Haynes and Boone, 98 exploration and production companies in Texas with a total debt of $ 75,7 billion filed for bankruptcy between 2015 and 2020.

It is expected that the number of bankruptcies will grow in the near future, because WTI crude oil prices fell 52% this year after the start of the COVID-19 pandemic.

The vulnerability of companies to foreign buyers increases the risk that the United States may lose control of valuable oil lands in the Perm basin (western Texas and southeast New Mexico), which has helped the country become the world's largest oil producer under the shale boom.

We have discovered such a volume of natural gas and oil that it is more than ever in history

said Wayne Christian, commissioner of the Texas Railroad Commission, which regulates the state’s oil and gas industry.

In five years, I don’t want any foreign investor to suddenly stop mining in Texas. This would be a threat to national security. We must not be allowed to penetrate unfriendly foreign states into our oil

- he added.

At the same time, the representative of another law firm Arent Fox, Malcolm O'Neill, confirmed that China is already "starting to look for deals."
  • Photos used: https://pixabay.com/
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  1. Observer2014 Offline Observer2014
    Observer2014 16 May 2020 20: 36
    While it is cheap: China buys US oil companies

    And they’re doing it right. If there is money, why not take advantage of the cool moment !? I’m afraid to even think about how UraKalki are now excited and will print to us that the Americans will throw Chinese money. laughing
  2. 123 Offline 123
    123 (123) 16 May 2020 20: 55
    Everything is leading to the loss by the Americans of oil control not only at home, but around the world.
    Oilfare becomes a strange phrase, because how long it will be possible to impose your currency in the calculations on a market that you do not control is more of a rhetorical question. Good luck on this path. yes
  3. jekasimf Offline jekasimf
    jekasimf (jekasimf) 16 May 2020 22: 11
    Are the Chinese really so loshary that they will invest in companies in the United States! After all, the United States will wring out and do not frown! By the decision of some district court Zadrishchinsk-city.
  4. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 16 May 2020 22: 45
    Apparently, another noodle on the ears. Who cares about the 2015 bankrupt? China is so difficult.
    But about the Arabs - they wrote, they are buying up. And so in USA there are a lot of Arab firms, including oil and gas, so even the Arabs almost officially emit state. money for the purchase of cheaper shares.