Chinese investment will boost South Texas drilling

[douglas9]

Parts of South Texas already in the midst of a historic drilling boom soon will get a boost from an unlikely source: China. China’s national oil company, CNOOC Ltd., will spend up to $2.2 billion to drill in partnership with Chesapeake Energy Corp. in the Eagle Ford shale, a highly productive oil and gas formation that lies under 11 counties.

Exploration in the Eagle Ford already has brought newfound prosperity to South Texas’ hardscrabble farming and cattle country, and Chesapeake said the increased drilling could bring 20,000 new jobs to the region.

If the Eagle Ford shale’s production levels reach forecast levels, “it could definitely be a fairly strong contributor to the economy and to the investor, particularly in South Texas,” said Bob Fryklund, research director at IHS Herold, an energy research company.

IHS has forecast that natural-gas production from the Eagle Ford shale could reach 1 billion cubic feet per day in 2011, which is robust, Fryklund said. That’s the same level as what’s currently the largest offshore natural-gas gathering spot, Independence Hub in the Gulf of Mexico.

http://www.mysanantonio.com/news/Chinese_investment_will_boost_South_Texas_drilling_104754124.html

[liberal N proud]

1. We get our oil from the middle east

meanwhile, China is drilling in Texas for oil. Where is that oil going?


On the lighter side of the story:

"We’ve had a sleepy little town, now every trailer spot in town, every apartment, is full."

[Statistical]

2. "We get our oil from the middle east" ROFL That is a joke right.

The largest source of US oil is .... US.
The second largest source is Canada.
The third largest source is Mexico.
The fourth largest source is Venezuala.

Only two ME countries even make the top 10 (Saudia Arabia & Iraq).
ME oil represents a minority of oil consumed in the United States.

"China is drilling in Texas for oil. Where is that oil going?"

Oil is usually sold at the closest location. Seller usually pays transportation costs so selling oil to a refinery 10 miles from drill point is far more profitable then selling it to one 2000 miles from drill point.

Good deal for China. They supply the funding then profit from us selling our oil to ourselves.