• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 9 hours EU has already lost the Trump vs. EU Trade War
  • 1 day Science: Only correct if it fits the popular narrative
  • 21 hours Crazy Stories From Round The World
  • 1 day Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 23 hours Everything You Need To Know About Trump
  • 10 hours IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 3 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 1 day Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 5 hours Water, Trump, and Israel’s National Security
  • 20 hours Impeachment Nonsense
  • 12 hours ‘If it saves a life’: Power cut to 1.5 million Californians
  • 2 days What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 2 days Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
Alt Text

The Birth Of An LNG Superpower

Iran’s rapprochement with Qatar and…

Alt Text

Top U.S. Gas Producer Looks To Ditch Major Shale Assets

Shale icon Chesapeake is reportedly…

Darrell Delamaide

Darrell Delamaide

Darrell Delamaide is a writer, editor and journalist with more than 30 years' experience. He is the author of three books and has written for…

More Info

Premium Content

U.S. Gas Producer Taps Sovereign Funds Amid Offshore Oil Anxiety

Chesapeake Energy, a leading U.S. producer of shale gas, found plenty of willing buyers for its latest private placement as sovereign wealth funds in Asia expressed concern about the future of offshore oil drilling.

“We made the investment decision because the long-term gas price outlook is bright on a global push for clean energy and expectations of less deep-sea water drilling in the Gulf of Mexico after BP’s oil spill,” the Korean Investment Company said in a statement announcing it was buying $200 million of Chesapeake’s $900 million preferred share issue.

China Investment Corp. and Temasek Holdings of Singapore were two other Asian sovereign wealth funds (SWFs) acquiring shares, Chesapeake announced. News reports said the Abu Dhabi Investment Authority, generally thought to be the world’s biggest SWF, also bought some shares.

The new share sale comes on the heels of $1.7 billion in preferred shares that the Oklahoma City-based natural gas producer sold in a private placement last month, including $500 million to Temasek at that time.

SWFs kill two birds with one stone when they buy into energy projects. Returns are generally higher than in straight stocks and bonds, and they reinforce the energy security of their countries.

“At a time when various sovereign funds are strengthening strategic investments, investment in a natural-gas producer will play a part in securing energy resources,” is the way the Korean fund put it.

The Gulf oil spill in the wake of the Deepwater Horizon accident has led the U.S. government to impose a six-month moratorium on offshore drilling, casting doubt on the future of the industry.

However, a federal judge in Louisiana this week overturned the government ban, saying it doesn’t take account of the economic harm such a stoppage will cause in the region.

U.S. District Judge Martin Feldman said the government has not proven that the equipment used in deepwater drilling is flawed just because it failed in this instance.

“Are all airplanes a danger because one was?” the judge wrote in his order. “All oil tankers like Exxon Valdez? All trains? All mines? That sort of thinking seems heavy-handed, and rather overbearing.”

By. Darrell Delamaide




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play