China intends to oust dollar from oil trade

China is planning to launch its own oil benchmark in October, similar to Brent and WTI, striving for a more important role in establishing crude prices. Unlike the Western benchmarks, the Chinese contracts will be nominated in the yuan, not the US dollar.

Shanghai International Energy Exchange sent a draft futures contract to market players in August, Reuters reported quoting sources. Continue reading

China discovers enormous gas field in South China Sea

The world’s largest net oil importer, China National Offshore Oil Corporation, has announced the discovery of 100 billion cubic meters of natural gas field in the South China Sea.

China’s state news agency Xinhua reported late Monday that a deepwater drilling rig had discovered Lingshui 17-2, the country’s first self-support deepwater gas field, in September 2014 and it has since been approved as a large-scale gas field. Continue reading

Brazil finds bumpy path on way to becoming world oil power

Brazil’s efforts to become one of the world’s major oil producers have attracted businesses such as U.S. drilling giants Halliburton and Baker Hughes, gained it partnerships with oil companies from India and China, lured immigrants from idyllic Norway and drawn investment dollars from American pension funds in Florida, South Carolina and California.

But the prospects for success have darkened in the seven years since Brazil first identified massive oil deposits in deep water off its coast. Many fear that Brazil’s chance to become one of the world’s major energy producers is fading as the global energy landscape changes dramatically. Continue reading

China eyes post-Chavez oil axis

China is set to overtake the United States as the world’s largest importer of oil this decade. While the expansion of China?’s economy has slowed from a breakneck 10% yearly rate to a still-formidable 7% per annum, the economic metamorphosis of the Middle Kingdom is having huge impacts on global energy markets.

The growing ranks of China’s middle class increasingly aspire to a lifestyle – and level of consumption – that approximates the patterns of their counterparts in the world’s richest countries. The death of Venezuelan president Hugo Chavez has further highlighted China’s need for the lifeblood of a modern economy and the economic and geopolitical threats China’s dependence on imported energy hold for the leadership in Beijing.  Continue reading

China Deal Benefits Obama Donors

Administration-approved takeover by Chinese oil company provides Obama backers windfall

The government watchdog group Judicial Watch is suing the Treasury Department for records pertaining to the department’s decision to grant a Chinese government-backed company access to oil deposits in the Gulf of Mexico, a move that will benefit Obama donors.

The Chinese National Offshore Oil Corporation (CNOOC) reached a “definitive agreement” with Nexen, Inc., a Canadian energy company, announced on July 23, 2012, to buy all of the company’s outstanding public shares. Nexen has holdings in the Gulf of Mexico and Canada, giving the Chinese government access to millions of barrels of Keystone XL and Gulf reserve oil. Continue reading

In Historic First China Begins Oil Extraction In Afghanistan

In a surprising (if not quite shocking) move, late on Friday Canada blocked Petroliam Nasional Bhd.’s C$5.2 billion takeover of Progress Energy Resources Corp. saying the bid by the Malaysian state-owned company “wasn’t in Canada’s national interests.” As BusinessWeek explains, “in what investors say is a test case for the $15.1 billion bid by CNOOC Ltd. of China for Calgary-based Nexen Inc., the Canadian government said it “was not satisfied that the proposed investment is likely to be of net benefit to Canada,” according to an Oct. 19 statement from Industry Minister Christian Paradis.” While it is unclear precisely what would be of “net benefit to Canada” what is certain is that the Progress Energy move will crush investor spirits who in recent months have expected a flurry of foreign bids coming for local energy names, only to be left at the altar courtesy of government intervention. Continue reading