We have been closely following the rise of China as the US made itself vulnerable in the economic crisis. (See “Is China Building the New-and-Improved Global Empire?“) In addition to taking advantage of our battered currency, China has been gobbling up mega-tons of the world’s energy resources. Now, they’re making a move for ours.
China National Offshore Oil Company, CNOOC (NYSE: CEO) announced it will “buy a one-third stake in Chesapeake’s (CHK) shale oil and gas acreage in southern Texas for an initial $1.08 billion. Cnooc also will spend an additional up to $1.08 billion shouldering drilling and other costs for developing the 600,000-acre Eagle Ford share assets.”
We’re still the world’s largest energy consumer. So, shouldn’t we be thinking long-term like China? Shouldn’t we think about how our great-grandchildren will living in a high tech world? Or, should we let China buy our resources now so we have less later?
This isn’t like the Japanese property scare when they were buying up mega-acres of the US. Energy is a finite resource that can’t be bought back after it’s expended. There’s a huge difference. We better pay close attention so in 50 years we haven’t exported all our energy resources the way we exported our middle class jobs over the past 30 years. If you think we’re having an economic crisis now, that one will be much worse. And if we don’t start catching up in the clean energy industry, we’ll be buying all our energy production equipment from China too.
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