Are These Asset Sales Jeopardizing Our Energy Independence? – Devon Energy Corp (DVN), CNOOC Limited (ADR) (CEO), Transocean LTD (RIG)

Right now economics are front and center and, in all likelihood, foreign ownership of our natural resources isn’t going to matter, until it does. For example, we don’t think twice about allowing BP plc (ADR) (NYSE:BP) to own and operate U.S. oil and gas assets as most of us likely don’t even realize that BP is headquartered in London. No one cared that BP operated in the Gulf of Mexico until one of its wells sprung a leak, and then no one wanted to buy gas from a BP-branded gas station. It was at that point that we worried whether we’d be made whole as other interests triumphed over simple economics.

Lucky for us, BP isn’t a national oil company and it went out of its way to clean up the Gulf and make things right. However, what would happen if this was a national oil company with a country that had a conflict with our foreign policy? Would we have had similar resolutions to the U.S. Department of Justice’s settlements with BP and the Swiss-domiciled Transocean LTD (NYSE:RIG) which owned the rig that caused the oil spill? BP paid $4.5 billion to the U.S. government including a $1.26 billion criminal fine while Transocean LTD (NYSE:RIG)’s settlement included $1.4 billion in fines, penalties and recoveries. While those settlements will hopefully make other producers think twice about cutting corners, it might not have the same effect on a national oil company.

Like I said earlier, no one will care, until they have reason to care. Right now these deals are good for our economic interests as they provide capital that’s currently not there given the lower returns producers are seeing. Until something conflicts with national security or our foreign policy these deals are unlikely to stop as so many drillers are starving for capital.

That’s why I think we need to have this discussion before it becomes an issue. Should we draw the same line in the sand that Canada has apparently drawn? Should we take all the money we can get as long as it makes good business sense? We’ve endured such a great cost over the years not to take this issue a bit more serious.

The article Are These Asset Sales Jeopardizing Our Energy Independence? originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy and Transocean and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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