• 11 hours U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 13 hours Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 15 hours Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 17 hours Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 20 hours Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 22 hours TransCanada Boasts Long-Term Commitments For Keystone XL
  • 23 hours Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 1 day Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 1 day Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 2 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 2 days Venezuelan Output Drops To 28-Year Low In 2017
  • 2 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 2 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 2 days Kinder Morgan Delays Trans Mountain Launch Again
  • 2 days Shell Inks Another Solar Deal
  • 3 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 3 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 3 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 3 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 3 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 3 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 3 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 3 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 3 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 3 days Norway Grants Record 75 New Offshore Exploration Leases
  • 4 days China’s Growing Appetite For Renewables
  • 4 days Chevron To Resume Drilling In Kurdistan
  • 4 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 4 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 4 days Nigeria Among Worst Performers In Electricity Supply
  • 4 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 4 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 5 days Saudis To Award Nuclear Power Contracts In December
  • 5 days Shell Approves Its First North Sea Oil Project In Six Years
  • 5 days China Unlikely To Maintain Record Oil Product Exports
  • 5 days Australia Solar Power Additions Hit Record In 2017
  • 5 days Morocco Prepares $4.6B Gas Project Tender
  • 5 days Iranian Oil Tanker Sinks After Second Explosion
  • 7 days Russia To Discuss Possible Exit From OPEC Deal
  • 8 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
Alt Text

The Biggest Loser Of The OPEC Deal

The OPEC production cut deal…

Alt Text

Shale Restraint Could Lift Oil To $80

With oil reaching $70 per…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

U.S. Energy To See Huge Investments From China

Oil

During President Trump’s visit to China, the U.S. signed US$250 billion worth of potential trade and investment deals that would boost American exports to China and Chinese investment in the United States.  

The two single largest potential deals were signed in the energy sector at the official U.S.-China Business Exchange, which took place on November 8th and 9th during President Trump’s visit.  

The agreements are just memorandums of understanding (MoU), not final contracts, but they set the stage for a stronger energy relationship between the two powerhouses of the global energy production and consumption.

There is some concern that Chinese investment in U.S. energy could undermine free market principles. On the Chinese side, it’s unclear if Beijing is convinced that the U.S. will not use energy to retaliate against China by cutting supplies if disputes or disagreements escalate, Forbes contributor Sara Hsu writes.  

The White House described the potential deals as such “that will create jobs for American workers, increase United States exports to China, and stimulate investment in American communities.”

West Virginia and Alaska were the two biggest beneficiaries of potential deals for Chinese investment, both which are in the energy sector.

Related: Tesla Completes World’s Largest Battery

West Virginia announced the plan of the world’s biggest energy corporation—China Energy Investment Corporation—to invest US$83.7 billion in shale gas development and chemical manufacturing projects in West Virginia. This was the largest pledged investment out of the US$250 billion potential deals that the U.S. signed in Beijing.

China Energy—created by the recent merger between state-owned coal miner Shenhua Group and energy producer Guodian Group—plans the investment to span over the course of 20 years. The amount is higher than West Virginia’s US$72.9 billion gross domestic product (GDP) in 2016.

“Expanding Appalachia’s energy infrastructure, including developing a regional storage hub and market for natural gas liquids, will have a transformative effect on our economy, our security, and our future. From driving growth and creating jobs to maximizing America’s energy potential, the benefits for West Virginia and the country from this new investment will be significant and long-lasting,” Senator Shelley Moore Capito said in West Virginia Department of Commerce’s statement.

The second-biggest Chinese investment is planned for the state of Alaska, for advancing Alaska’s strategic gas infrastructure project—Alaska LNG.

The State of Alaska, Alaska Gasline Development Corporation (AGDC), China Petrochemical Corp (Sinopec), China Investment Corporation (CIC), and Bank of China (BOC) signed a joint development agreement to advance Alaska LNG. The deal, expected to involve a total investment of up to US$43 billion, will create up to 12,000 American jobs during construction, reduce the trade deficit between the United States and Asia by US$10 billion annually, and provide China with clean, reliable, and affordable energy, the U.S. Commerce Department said.

“Sinopec is interested in the possibility of LNG purchase on a stable basis from Alaska LNG,” Sinopec said in AGDC’s statement.

“This is an agreement that will provide Alaska with an economic boom comparable to the development of the Trans-Alaska Pipeline System in the 1970s,” Alaska Governor Bill Walker said.

In two other potential energy deals signed during President Trump’s visit, Cheniere Energy and China National Petroleum Corporation signed a MoU on long-term LNG sale and purchase cooperation, while Delfin Midstream, developing the first floating facility to export U.S. natural gas, signed a MoU for a 15-year sales deal with city gas distributor China Gas Holdings to supply 3 million tons of LNG annually from 2021. The US$8-billion LNG project will be located 50 miles off the coast of Louisiana.

Related: WTI Prices Surge On Keystone Spill

The planned LNG deals fit in both the U.S. and Chinese natural gas production and consumption patterns and priorities.

The U.S. is expected to become a net exporter of natural gas this year and to continue to be a net exporter past 2018 due to rising exports to Mexico, declining pipeline imports from Canada, and growing LNG exports, the EIA says.

By 2022, the U.S. is expected to account for 40 percent of the world’s extra gas production, and will be on course to challenge Australia and Qatar for global leadership among LNG exporters, the International Energy Agency (IEA) has estimated.

China, on the other hand, is expected to become the leading determinant in global natural gas demand in the coming decades. Economic and industrial production growth, coupled with efforts to reduce stifling pollution levels, will lead to surging natural gas demand and an increase of natural gas as part of China’s energy mix at the expense of coal.

Although the U.S.-China agreements have yet to translate into definitive contracts, energy ties have been strengthened despite political differences.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Brian on November 26 2017 said:
    Thanks to Harper government and environmentalists, Canada has successfully blocked Chinese's investment in oil and gas. Canada has to sell at even discount the oil to the states if it can actually ship to the states.
  • For your peace on November 26 2017 said:
    Sucks for Canada. Thanks for Harper gov. and environmentalists, it has successfully blocked investment from China. Will have to make deeper cut for selling to the US if only the oil and gas can get there.
  • Ken on November 26 2017 said:
    Our pretty boy Prime Minister and his need to be liked by idealists should take note. Thinks he can maintain his leftist popularity by running huge deficits and handing out wads of cash to every crybaby on the planet instead of fostering solid resource investment such as mentioned in this fine article. We are doomed in Canada if he and his shiny little haircut are handed another mandate. Tip to soft millenials, just because he's good looking and wants to legalize weed doesn't mean he knows what he's doing....vote on the real issues.
  • GREG on November 27 2017 said:
    I find it ironic, if not hypocritical, Trump would support a MOU undermining
    the West Virginia coal industry. After all, hasn’t one of Trump’s main cries been to “bring back the coal industry?”. Now he supports a MOU to develop natural gas development undermining the very industry he’s promised to bring back. Granted, MOU’s are not contracts and I seriously doubt if they will be developed, however, it does make for good political fauter.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News