Oil, coal and natural gas account for more than 85% of the energy consumed in the United States, with oil alone accounting for nearly 40% of all energy utilized in America.
The United States is the world’s third largest producer of oil and currently produces about 40% of the oil that we consume, America’s oil production having peaked in 1970. This means Americans must rely on imported oil.
In fact, oil imports have exceeded domestic production since the early 1990s. A mere 30 years ago, 28% of the oil consumed in the United States was imported. Today nearly 60% of the oil utilized and consumed in the United States is imported from other countries. In order of importance, they are Canada, Saudi Arabia, Mexico, Venezuela, Nigeria, Iraq, the United Kingdom, Norway, Angola, Algeria and Colombia. [Sources: Wikipedia and QuoteOil]
Given that, it is sheer insanity for America to sell our oil and natural gas to China. But that’s exactly what Obama is doing!
Susanne Posel writes for Occupy Corporatism, May 15, 2012, that the Obama administration is selling our domestic energy resources that are worth billions, specifically oil and natural gas to the Chinese government. This action could force the US to become even more dependent on foreign sources of oil.
The China National Offshore Oil Corporation (which is owned by the Chinese government) and Sinopec Corporation (the Chinese government owns the most stock in this corporation) are buying oil from the US.
Sinopec Group, the largest shareholder of Sinopec Corp., is a super-large petroleum and petrochemical group incorporated by the Chinese government in 1998 based on the former China Petrochemical Corporation. Funded by the government, it is a state-authorized investment arm and state-owned controlling company.
The state-owned China National Offshore Oil Corporation (CNOOC) has agreed to pay $570 million for a one-third interest in Chesapeake Energy Corp.’s 800,000 leased acres in northeast Colorado and southeast Wyoming. The acreage is in the Denver-Julesburg (DJ) and Powder River basins. CNOOC is China’s biggest offshore oil and natural gas producer.
Obama offered the Chinese government a third of any new petroleum uncovered in the Chesapeake Bay. Those deposits are estimated to produce 500,000 thousand barrels of oil per day. Sinopec has been promised financial rewards from profits in states like Louisiana, Texas, Michigan, Ohio, and Oklahoma. The fracking endeavors by Niobrara Shale are nearly guaranteed to pay out financially for CNOOC.
H/t KhetaAmenti, Tina, and May.