U.S. giving away ownership and control of our Energy and refineries


While we have been puffed up feeling good about our new energy finds, the continued eroding of its control and ownership has been slipping away. I first started reporting on the story when the major refineries closed in Philadelphia, once known as a major hub. What I found several years ago was chilling. We may have lots of oil, but  between the EPA bearing down, and the sale to foreign entities, mainly China, we have much to be concerned about, particularly our refineries.. First the update, then we take a look at the industry as a whole.

Aug 5 (Reuters) – Venezuelan state oil company PDVSA will sell North American unit Citgo Petroleum if it receives a good offer, Petroleum Minister Rafael Ramirez told reporters on Tuesday in what would be its biggest pullback ever from the U.S. refining market.

Citgo has three U.S. refineries with combined capacity of some 750,000 barrels per day. They are in Lemont, Illinois, Lake Charles, Louisiana, and Corpus Christi, Texas.

Separate from Citgo, PDVSA has a stake in the Chalmette refinery in Louisiana with Exxon Mobil. The Venezuelan company also owns the Merey Sweeny unit of the Sweeny, Texas, refinery with Phillips66, which was spun off from ConocoPhillips.

Ramirez did not directly address the possible sale of PDVSA’s other refining assets in the United States, although bankers have said Chalmette is for sale. Ed:(Anyone want to bet China will step up?) More over atReuters

I decided to scout around to see what was going on with our refineries and our energy specifically. Here is what I came up with in just a bit of time back in 2012.

The Philadelphia company, which owns two refineries in Pennsylvania, announced plans to sell those refineries and focus on its pipelines and retail gas stations that provide a steadier cash flow.

“We have made progress in increasing the efficiency of our refineries over the last several years, but given the unacceptable financial performance of these assets, it is clear that it is in the best interests of shareholders to exit this business,”

Sunoco’s refineries in Philadelphia and Marcus Hook, Pa., can process a combined 505,000 barrels of oil per day. If it cannot sell its refineries, the company will shut down its main processing units in July 2012.

The move is one more step in a major transformation for U.S. refining. Marathon Oil Corp. and ConocoPhillips decided to distance themselves from refining, announcing plans earlier this year to spin off their downstream businesses. CNS News

Earlier, we have Valero:

Valero Energy, the top independent American refiner, is working to sell its remaining plants on the East Coast and in the Caribbean, The Wall Street Journal said Deal Book NY Times

Then we have this unpleasant business of China involved in Texas”

China stakes claim to S. Texas oil, gas

HOUSTON – State-owned Chinese energy giant CNOOC is buying a multibillion-dollar stake in 600,000 acres of South Texas oil and gas fields, potentially testing the political waters for further expansion into U.S. energy reserves.

With the announcement Monday that it would pay up to $2.2 billion for a one-third stake in Chesapeake Energy assets, CNOOC lays claim to a share of properties that eventually could produce up to half a million barrels a day of oil equivalent.

As part of the deal, the largest purchase of an interest in U.S. energy assets by a Chinese company, CNOOC has agreed to pay about $1.1 billion for a chunk of Chesapeake’s assets in the Eagle Ford, a broad oil and gas formation that runs largely from southwest of San Antonio to the Mexican border.

CNOOC also will provide up to $1.1 billion more to cover drilling costs.

The deal represents China’s second try at making a big move into the U.S. oil and gas market, following a failed bid five years ago to buy California-based Unocal Corp.

Intense political opposition over energy security concerns derailed that $18.4 billion deal. But analysts expect few political or regulatory hurdles to the CNOOC-Chesapeake deal. My San Antonio

Let us check out Wyoming:

China’s Niobrara Shale deal part of complex U.S. relationship

CHEYENNE — It’s more about greenbacks and less about the Red Menace.

China’s recent deal for assets and exploration in the Niobrara Shale should be viewed as part of a complex energy relationship between China, the United States and the rest of the world, some Wyoming energy experts say.

“It’s part of the mix. To me, that is the reality we’re working in, it’s a mutual dependency,” said Jean Garrison, director of international studies and professor of political science at the University of Wyoming. “These are people we’re going to be dealing with in a business setting.”

China’s $1.3 billion Niobara Shale deal with Oklahoma City-based Chesapeake Energy is just one of many cooperative deals recently inked between the country’s state-owned oil companies and businesses in the U.S., Canada, Australia and South America.

Mark Northam, director of UW’s School of Energy Resources, said he would be more concerned if Chinese state-owned firms tried to buy companies such as Chesapeake outright.

Read more: Trib Com News

Check out what Mexico and Citgo were up to decades ago, and who knew?

State-run Oil Company Mexico’s PEMEX Looking into Purchase of Oil Refineries in U.S.. By Carlos Navarro. The state-run oil company PEMEX is exploring the possibility  Repository UNM EDU

Between 1986 and 1989, PDVSA, through its subsidiary CITGO Petroleum Corporation, acquired the Lake Charles and Corpus Christi refineries in the USA with a refining capacity of 485,000 b/d. The investment was made to enhance the value of Venezuela’s heavy crudes which, with a high sulphur and metal content, had been selling at a considerable discount to light crudes. http://www.petroleumworld.com/sati10061201.htm

China Enters California Oil Market With 50% Purchase of Coastal Corp. Refinery

China agreed Wednesday to buy half of a Hercules, Calif., oil refinery in a move that will put Chinese crude oil into competition with Alaska and California oil. The investment is the first of its kind by China’s state-owned oil industry and mimics recent actions by several OPEC nations.

The joint venture with Coastal Corp. of Houston, owner of the small refinery in the San Francisco Bay Area, also signals a move by Coastal into California’s huge gasoline and convenience-store market, the U.S. company saidhttp://articles.latimes.com/1988-08-04/business/fi-10283_1_oil-markets

 Then we have Israel:

ALON USA acquired ownership of the Big Spring, Texas refinery in August 2000, when ALON Israel Oil Company Ltd. purchased the U.S. fuels marketing and refining assets of Atofina Petrochemicals, Inc. (FINA). The 70,000-barrels-per-day Big Spring refinery delivers products to our customers from Ft. Smith, Arkansas to Phoenix, Arizona via owned/operated and third-party pipelines. Alon USA

China and our Oil Leases

China’s state-owned energy firm just closed a deal to buy interests in four development leases on the American Outer Continental Shelf (OCS) in the Gulf of Mexico.

The deal, which requires approval of the U.S. government, is between Norway’s Statoil and China National Off-Shore Oil Corporation (CNOOC). This is the same CNOOC that would have bought Unocal four years ago for $18.5 billion but for pressure from Congress, according to The New York Times, quoting an energy industry trade publication.

Because it must be approved by the U.S. government, the Statoil/CNOOC deal puts President Obama and Ken Salazar, his Secretary of the Department of the Interior, which controls OCS leasing, in a difficult position.

UPDATE: Bishop says Obama policy aids foreign nations, not U.S.

Rep. Rob Bishop, R-UT, says the Statoil/CNOOC deal is indicative of the Obama administration’s failure to protect U.S. consumers from foreign nations seeking to tap into this country’s abundant energy resources:

“Unemployment will continue to exceed acceptable levels and the economy will continue to suffer until this administration reverses its anti-energy policy.  China and other foreign countries are gaining access to the abundant natural resources located in the American OCS, meanwhile an energy starved U.S. continues to experience the detrimental effects of Secretary Salazar’s decisions to place special-interests before the American people.  Since taking office this administration has made great strides in helping countries gain access to American energy resources, it’s just too bad the U.S. isn’t one of them

Read more at the Washington Examiner: Washington Examiner

BONUS INFO!  Just to make our heads spin.

Recall: Russians to Control Uranium Mines in Wyoming?

Russians to control Uranium mines in Wyoming:

Two uranium mines in Wyoming are on their way to control by a Russian company now that the Nuclear Regulatory Commission has approved transferring the mines’ licenses.

The NRC last week approved the license transfer to a Russian company known as ARMZ which expects to obtain a controlling interest in Canadian-owned Uranium One by year’s end. Uranium One holds the licenses for a proposed uranium mine and an existing uranium mine in northeast Wyoming.

The transfer raised concern from Wyoming’s congressional delegation, who said the uranium could in theory go overseas and serve against U.S. interests.

So who has the interests of the United States? Do not count on our government.

 

22 Responses to “U.S. giving away ownership and control of our Energy and refineries”

  1. Largest U.S. Refinery now belongs to Saudi Arabia – Grumpy Opinions Says:

    […] From China to Russia, we are allowing the take over of resource rich tens of thousands of acres. So we are shutting down our coal companies, and giving away our refineries. What fool Nation allows this? So much for energy independence. Check out the list so far Here […]

    Like

  2. Largest U.S. Refinery now belongs to Saudi Arabia | BUNKERVILLE | God, Guns and Guts Comrades! Says:

    […] we thought my earlier post U.S. giving away ownership and control of our Energy and refineries August 6, 2014 where I listed just some of the refineries and energy resources we were giving away […]

    Like

  3. Chinese makes bid takeover of U.S. Military manufacturing equipment company | BUNKERVILLE | God, Guns and Guts Comrades! Says:

    […] we are selling out our manufacturing capability. We already are giving away our refineries. Try U.S. giving away ownership and control of our Energy and refineries. or Clintons and the give away of U.S. Uranium mines or Millions Flowed To Clinton Foundation […]

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  4. energy and refineries Says:

    The control of foreign countries on US energy and refineries is growing continuously. This may have a negative impact on the economy of the country. The government should spend more time on preserving the oil refineries coupled with proper regulations to avoid environmental hazards. As more and more number of oil refineries are sold to foreign countries the dependence on imports will grow and this will result in high prices.

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  5. Why the United States is giving away ownership of our Energy and Refineries | BUNKERVILLE | God, Guns and Guts Comrades! Says:

    […] my post was U.S. giving away ownership and control of our Energy and refineries. Paladin, who writes a great blog commented on the post, and it is worthy of a read. Pay him a […]

    Like

  6. Steve Dennis Says:

    Wonderful post Bunkerville! Your last two sentences summed it up, our government surely does not have our best interests at heart. The globalists must be thrilled.

    Like

    • bunkerville Says:

      Onward towards the NWO.

      Like

  7. Paladin Says:

    The left’s grand idea to prevent WW III was to intertwine all of the key player’s economies so that could never happen because everybody would go broke. There are several outcomes from such a strategy, the first is that if one economy fails to thrive, all connected economies take a hit. This is why it is said that if the American economy has a cold, the rest of the world gets the flu. The flawed premise was that America’s economy would always be preeminent.

    The second effect is a bit more subtle. As foreign influence grows, international policy becomes critical. This is why Obama’s foreign policy is so important. The fact that he basically doesn’t have one, is not good news. By being a follower and not a leader, Obama submits America to the will of her enemies by default. The third effect is massive corruption.

    We have already seen the effect of such corruption with the collapse of the housing market in 2008. A collapse formed by the left holding a gun to the head of lenders and forcing them to make loans to people who could not pay them back. Banks sold these loans to investors who purchased insurance to limit risk and the rest is history. There were runs on commercial banks, but the public was kept calm and the consumer banks dodged a bullet. We began printing money around the clock in March of that year because the government saw what was coming and have never stopped. Flooding our economy with cash worked to calm fears initially, but economists believe that you cannot do so and avoid the consequence of run away inflation. While that has not happened yet, many believe that it is only a matter of time and that is why economic growth is slow as the economic shell game tries desperately to suck up all of that extra cash.

    The fourth effect is overconfidence. Most in American government believe that our foreign co-conspirators, because the only way any of this works is with the cooperation of foreign powers, would never allow our economy to go belly up. If we go, they go. At least that is the thinking. But there may be ways around an economic collapse. The use of gold reserves for instance. Something that America no longer believes is necessary, but the Chinese and Russians still have. In fact, the Chinese have been buying gold steadily for years and hanging on to it. Could that mean that the Red Chinese would survive if the American economy collapses? Possibly. If the American economy implodes, the Red Chinese transition to the gold standard and possibly survive the chain reaction of economic collapse.

    The untold story is that wealth is being created outside of the United States. As American assets are being carved up by foreign powers, the best and the brightest in those fields are going to work for them. American ownership of American resources is dwindling. And American citizens become beholden to foreign powers and not their own government. Who do you think these citizens will elect to that government? Will the public support policies that are not favorable to their employers? Why would a citizen care about something that he no longer has a vested interest in? That is the long range problem and one that terrifies the left when they consider the influence of capitalism, but not, strangely, when one trades the place of the capitalist with that of the foreign dictator.

    As the foreign acquisition of American business continues to grow, so too does foreign influence on our government. Influence that may or may not have America’s best interests at heart. Such a circumstance does not see America as an equal, but as a resource to be tapped. Ultimately, that is the grave danger of foreign ownership and why colonialism failed. It’s just that in our case, there are no foreign troops. Although I would not be surprised to see such should the American economy fold.

    We have never truly recovered economically from 9/11. While the loss of life was tragic, the economic damage was far worse. In short, we are very vulnerable economically right now. We spend like there is no tomorrow, and just wait until the medical bills begin to roll in from Obamacare. Cloward and Piven’s strategy is alive and well, and the aim is to crash the American economy to initiate governmental change by crisis.

    There are a lot of pokers in the economic fire right now.

    Like

    • bunkerville Says:

      Thanks for your wonderful comment. I will use it in a post as you really nailed it as only you can write. As I await Dear Leader to tells us that the Constitution is no longer worth the paper it is written on. Of course he will keep us all waiting for “The One.”

      Like

      • the unit Says:

        Some would say a long comment by Paladin. I think he summed it up in a nut shell…Yalta, Bretton Woods, and most all that’s happened since.

        Like

  8. zip Says:

    We can count on this Gov. to work for the globalist/central bankers.
    Bunker this reminds me of the old Western books, where the good guys try to play fair but the evil-greedies use any means possible to get theirs, plus what belongs to others. The large land owner has the law in his pocket, gunslingers who’s job it is to keep the town/people in line – do what he says or else. The bad-guys get their reward in the end (death), but in the meantime the good guys get bamboozled and usually beat-up/humiliated and/or killed. Today’s example to go w/ your foreign interest: Reid and his Chinese solar connection (Bundy Ranch), Biden’s son’s employment in Ukraine and Kerry’s stepson: http://www.thewire.com/global/2014/06/its-totally-normal-that-joe-bidens-son-works-for-a-ukrainian-energy-company/372385/ Big oil = big biz.

    Like

    • bunkerville Says:

      I caught your link as well after I did my post. Yet how many even know what is going down.

      Like

  9. Conservatives on Fire Says:

    One World, one government, one village _ won’t it be grand?

    Like

    • bunkerville Says:

      Apparently it takes many many villages.

      Like

  10. gds44 Says:

    Reblogged this on Gds44's Blog.

    Like

    • bunkerville Says:

      Thanks again.

      Like

  11. Petermc3 Says:

    This should be ironic that our money spent at the dollar store buying cheap inferior Chi-com consumer goods is being used to fund their incursion into ownership and control of our energy sources and its production but since it is not beyond the pale to suspect this there is no irony, just a logical extension of what they are being allowed by the government and the corporate elites. And how about the acquisition by foreign interests of our food and commodity production and supply? How far has this gone? Our government reminds one of Batista’s Cuban government giving away the store to big business and the mafia back in the 50’s. The difference is that Batista did it for payola while this administration and most likely the following one’s agenda is to control and eventually bring down the whole system. The real irony will be the bloodless takeover of this nation by the socialists/marxists/communists playing the capitalism game better than we can and sanctioned by a majority of our own people waiting for their next government check. Just one man’s simplistic opinion.

    Like

    • bunkerville Says:

      Well stated Peter as usual. Just think about our food supply as you stated. I am working on a story whereby Many Businesses are deciding that they can do better with the Dems since the Tea Party folks are causing problems for the GOP. So who will the GOP have left? Jobs? No more interested since just in sending them overseas.

      Like

  12. Paul H. Lemmen Says:

    Reblogged this on Dead Citizen's Rights Society.

    Like

    • bunkerville Says:

      Thanks

      Like

  13. Gunny G Says:

    Reblogged this on BLOGGING BAD w/Gunny G ~ "CLINGERS of AMERICA!".

    Like

    • bunkerville Says:

      Thank you

      Like


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