Chesapeake Energy Corporation (CHK), Devon Energy Corp (DVN): China Ready to Reap Billions From U.S. Shale Gas Technology

This is where oil-field service companies really can step in and take things to the next level. The idea is to harness the technical know-how of a company like Weatherford International Ltd (NYSE:WFT) to unlock China’s vast potential. Weatherford isn’t the only oil-field service company chomping at the bit to help China unlock its oil and gas reserves. Companies like Baker Hughes Incorporated (NYSE:BHI) and Halliburton Company (NYSE:HAL) both have set up shop in the country and are looking to expand beyond the current focus of exploring for conventional oil and gas. Given that water is a big issue for China (remember, hydraulic fracturing requires millions of gallons of water per well), Halliburton Company (NYSE:HAL) has the advanced technology which could be key to unlocking the country’s resources. The company is currently pushing ahead with its H2O Forward service in the Bakken, which is designed to recycle produced water onsite saving oil and gas producers from having to constantly secure sources of fresh water. That system could someday really help to alleviate China’s water issues. Meanwhile, Baker Hughes Incorporated (NYSE:BHI) has been working with its partners in the country to study shale gas prospects in order to provide oil-field services to producers. China is poised to benefit as these technologies advance.

The goal of oil-field service companies and Chinese producers is to take what was learned in the U.S. and figure out the best way to apply that knowledge to China’s reserves. While these companies are still early in the process, given China’s voracious appetite for energy, the potential profits are very appealing. That’s why it would appear that China is on the verge of finally cashing in on its investments focused on gaining knowledge of U.S. shale gas technology.

The article China Ready to Reap Billions From U.S. Shale Gas Technology 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 recommends Halliburton. The Motley Fool owns shares of Devon Energy and has the following options: long January 2014 $30 calls on Chesapeake Energy.

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