Keith wrote:  One of the interesting things about the Chinese bid for Unocal versus Chevron's is that they also work closely together on many oil production matters in Asian oilfields. There's a "Chinese wall" (!) within Chevron between those departments which are competing with CNOOC and those which are working amicably with it. Exactly the same now applies to the relationship between America and China at a political level. They'll both make noises against one another on some matters (trivial ones like tariffs against Chinese-made bras, for example) but on other issues they'll sink or fall together.

 

Exxon, Aramco sign $3.5Bn refinery deal, to expand a refinery in south China, sealing what they called the country's largest oil project. http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2005-07-08T133956Z_01_SHA283515_RTRIDST_0_BUSINESS-ENERGY-CHINA-EXXON-DC.XML

 

Chinese rigs, crews arriving in western Colorado
Gary Harmon, The Daily Sentinel (US), 7 July 2005

Some Chinese drill crew members already have arrived in western Colorado, preparing to start drilling for natural gas in the Piceance Basin.
An official with Denver-based Western Energy Advisors, which brokers arrangements for the Chinese crews and exploration and production companies, said he was unfamiliar with specific crews’ schedules, but that some crews and rigs could be expected to arrive in western Colorado now.  Several western Colorado residents on Wednesday reported seeing drill rigs arriving or being set up in the area.

Western Energy Advisors worked with federal agencies to arrange for visas for the Chinese crews, said Bill Croyle, a partner in Western Energy.  One hurdle the company had to clear was to show that the jobs couldn’t be done by American citizens or legal residents.  That wasn’t difficult to show, Croyle said, citing the loss of “a million” domestic jobs among major oil companies over recent years, as well as reductions among smaller employers.  Much of the domestic exploration and production industry is “just gone,” he said. Rigs have been trucked in from Canada and elsewhere for drilling in the United States.

 

Western Energy is working with the China National Petroleum Corp., he said., but a partner in the venture, Golden Bear Drilling and Services Corp., is entirely American owned. A subsidiary of China National, Jilin Petroleum USA of Denver, no longer has an interest in Golden Bear, he said.

 

One reason domestic exploration and production companies are attracted to Chinese crews is the background of the drillers, Croyle said.

“In China, drilling is a lifetime profession,” he said.  The country has six petroleum universities, and many of the crew members hold master’s degrees, bachelor’s degrees or the equivalent of associate’s degrees, Croyle said.  Crew members must have at least two years of class work and a yearlong apprenticeship before they can join a crew.  Many crews stay together their entire careers, he said.  “These people know what they’re doing,” Croyle said. “It’s all about the crews.”

 

Over time, Chinese crew members will train Americans to work on the Chinese-made rigs, he said, and the number of Chinese workers will gradually shrink as Americans take over.

 

American workers still have plenty of work servicing drill rigs in the basin, he said.  And in any case, Croyle said, “The best Chinese food in the world will be at the commissary at the well site.”

 

http://www.gjsentinel.com/news/content/news/stories/2005/07/07/7_7_Chinese_workers_WWW.html

 

 

The Chinese are also opening their pocketbooks to alternative energy projects with American firms. I know a fellow here launching a 2nd generation wind turbine plant in China, and they won’t run into opposition they might here on site selection. One key change: this new turbine is smaller, designed for use on rooftops.

 

Has anyone read anything more about China buying oil with cash reserves?

 

 

Karen

 

 

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