Because China plans to cap its crude imports to 61% of the country’s total consumption by 2015, it needs to work fast to get up to speed on these technologies so it can meet its goal. Currently, the country relies on imported crude to meet 56.4% of consumption, but the concern is how fast its consumption is growing. That’s where the third leg of its plan comes into play, and that’s where international oil companies are investing in mainland China to exploit these shale resources.
Think of this as the reverse of what’s happening here in America. In one such example, leading U.S. independent oil and gas producer ConocoPhillips (NYSE:COP) has two joint study agreements covering 1.5 million acres on mainland China. These ventures give the company access to high-quality shale plays while the Chinese operators, Sinopec and PetroChina, get both capital and expertise.
While on one hand we might fear that we are jeopardizing our own future of energy independence, as we look at the whole picture we can get a better understanding of what’s truly happening here. China is facing its own energy challenges, so it’s investing here in the U.S. so that it can reinvest back home to meet that challenge. While some might worry that our energy will one day be stamped “Made in China,” that’s a highly improbably outcome given the challenges that country still must overcome.
The article Will Our Energy Be Stamped “Made in China,” Too? originally appeared on Fool.com.
Fool contributor Matt DiLallo owns shares of ConocoPhillips. The Motley Fool recommends Halliburton, owns shares of Devon Energy, and has options on Chesapeake Energy.
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