Tag Archives: #ChineseTexasInvestment

How’s Your Perspective Today?

Perspective I love this graphic.  The markets are always changing.  What we think is normal, rarely seems to stay put very long.

Two headlines I read reveal different perspectives:

              Oil Off To A Bad Start Of The Week As Dollar Gains Strength

               U.S. Rig Count In Free Fall: Plunges By 48 In One Week

So is the oil pricing just getting worse, or is there a possibility of improvement soon?

I  attended a Houston real estate conference  with 3,000 other people hosted by Del Walmsley.  Del shared some macro economic statistics with us.  One item he shared was the United States now has the best economy in the world.  Is that due to Europe, Japan, and the countries dominated by oil exports are going broke?

For example, Saudi Arabia needs $68 oil to support its social structure.  It has been borrowing money and spending currency reserves to support its welfare state.  The other oil exporters are in worse shape.

Japan’s economy is struggling with a shrinking population.

Europe’s social welfare system is bankrupting the countries.

Even China’s rate of growth has slowed to its lowest in 25 years.  The true state of China’s economic fortunes remains a mystery to the world due to government manipulation.

The United States is the largest recipient of foreign direct investment (FDI) in the world. FDI is a critical driver of economic growth and job creation and an increasingly attractive target for economic development agencies.  Reported by the U.S. Bureau of Economic Analysis.

The largest FDI in the United States comes from China.

In Gregory, Texas, a huge steel pipe plant buzzes with activity and makes history in the process. Chinese-based Tianjin Pipe Corporation made a $1 billion investment in the plant, marking the largest investment by China in an American manufacturing facility.

It’s also a landmark in the development boom around the Port of Corpus Christi, which has seen an increase in foreign investment, thanks to financial incentives and its own geography.

In conclusion…How’s Your Perspective Today?  Is there more opportunity or less opportunity?

West Texas Oil Production More Stable Than Saudi Arabia?

PumpingRigWTexas Pumping Rig In West Texas

Introduction…Oil production increasing in west Texas Permian Basin,  the largest U.S. shale-oil region, as the  Bakken and Eagle Ford are experiencing production declines.

West Texas two-lane county roads are congested with trucks as energy companies are searching for deals even though the oil markets are in the worst condition of decades.

On October 26, 2015 we reported (http://oilandgasinsider.com/?p=449) a Chinese investment holding company signed a letter of intent to purchase West Texas oil fields in Howard and Borden Counties for $1.3 billion.

Companies like Exxon Mobile, Corp. to Anadarko Petroleum Corp. have also searched for assets in this region the size of Syria.  Exxon purchased 48,000 acres in two deals in August and is reportedly looking for additional acquisitions.

“We’re already seeing companies targeting the Permian,” said Alen Gilmer, chief executive officer of Austin-based Drilling Info.  “If you were to look for the most stable area today to do anything, it’s going to be there.  Today you might even argue it’s more stable than Saudia Arabia.”

In summary…Oil production in the Permian is forecasted by the  EIA to rise 0.6% in December to 2.02 million barrels a day evan as drillers idled 59 percent of rigs.  The rival shale fields, the Bakken and Eagle Ford, have fallen 12 percent and 25 per cent respectively.

Source: “Oil Producers Hungary for Deals Drool Over West Texas Tiramisu,” BloombergBusiness by Dan Wethe, November 15, 2015.

The Chinese Are Coming To Buy Texas Oil Fields

ChineseBuyTexasOilFields Beijing (AP) A Chinese investment holding company said it has signed a letter of intent to purchase Texas oil fields in Howard and Borden Counties. for 8.3 billion yuan ($1.3  billion.)

In a disclosure to Shagnhai Stock exchange, Yantai Industry, Co, Ltd said the oil fields would be bought from Tall City Exploration and Plymouth Petroleum.

Does this mean the Chinese are just bottom fishing or are they just repatriating dollars that WalMart sent to China?

Do you think this is good or bad for Texas Oil business?  Seems to me the industry is experiencing a liquidity shortage, so bring it.