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Norway's Statoil buys US shale gas land
AP ^

Posted on 12/19/2012 7:20:38 PM PST by chessplayer

OSLO, Norway (AP) — Norwegian energy company Statoil ASA says it has bought 70,000 acres of land rich in gas and liquid gas in West Virginia and Ohio.

(Excerpt) Read more at bigstory.ap.org ...


TOPICS: News/Current Events
KEYWORDS: gas; norway; obamalegacy; shale
I will never understand why it's not illegal to sell US land to other countries.
1 posted on 12/19/2012 7:20:49 PM PST by chessplayer
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To: chessplayer

I think the US expanded by the Louisiana purchase, buying Alaska, and the Gadsden purchase in Arizona.

Goose, Gander I guess.


2 posted on 12/19/2012 7:24:55 PM PST by staytrue
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To: staytrue
Hold on thar ... buy the land or the mineral rights?

Y'want gas, you want rights ... not land.

And I don't think there's a hoopie worth his salt that wouldn't die keepin' them revenooers off'n his land !

3 posted on 12/19/2012 7:27:16 PM PST by knarf (I say things that are true ... I have no proof ... but they're true)
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To: chessplayer

Statoil is one of the companies who started moving oil by rail to get around Obama.

http://www.greencarcongress.com/2012/08/statoilbakken-20120830.html


4 posted on 12/19/2012 7:33:20 PM PST by ltc8k6
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To: knarf
I moved from Boston to WV in '76 and soon discovered there was a whole bunch'a land that had unlimited lifrtime gas rights with the deed.

Seems them dumb hillbillys told them oil people a century ago, they couldn't have no oil less'n they got the gas.

It was smelly, dirty burning and pretty much good for nuthin' (so the companies thought ..)THEN someone discovered how to carburate it ... THEN someone invented the heat pump, and them dumb hillbillys had lifetiome free, heat and refrigeration (ROGERS refrigerator ... heatpump) ... OH yeah ... and along came mantle burning lights ... all the comforts of home ... for nuthin' !

dumb hillbillys

The rest is ... as they say ... history.

5 posted on 12/19/2012 7:36:23 PM PST by knarf (I say things that are true ... I have no proof ... but they're true)
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To: chessplayer
The author of the article has a very meager understanding of the type of interest Statoil acquired, obviously. They acquired and became the operator on leases totaling some 70,000 acres. Statoil did not purchase this acreage in fee, as incorrectly stated in the article. Rather, they acquired an interest in the oil and gas leases covering said 70,000 acres.

This is merely more proof (as if any more were actually necessary) that reporters are universally ignorant, and in most cases, just plain stupid.
6 posted on 12/19/2012 7:43:21 PM PST by Milton Miteybad (I am Jim Thompson. {Really.})
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To: chessplayer

Don’t know much about the energy business, but if the hydrocarbons under that land are so valuable, why didn’t Exxon or Phillips 66 or Bill Gates or Warren Buffett buy it first?

This smells of the beginings of the handing over America to the UN.


7 posted on 12/19/2012 7:49:15 PM PST by MichaelCorleone (A return to Jesus and prayer in the schools is the only way.)
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To: MichaelCorleone
Don’t know much about the energy business, but if the hydrocarbons under that land are so valuable, why didn’t Exxon or Phillips 66 or Bill Gates or Warren Buffett buy it first?

In order of presentation:

Exxon: Already has unconventional shale liquids exposure through its acquisition of XTO Energy.

Phillips 66: Actually a refiner, not an E & P concern.

Bill Gates: You're kidding, right?

Warren Buffett: Isn't in the E & P biz. Somewhat surprisingly, the list of companies owned by Berkshire Hathaway shows no E & P concerns listed at all.
8 posted on 12/19/2012 8:14:04 PM PST by Milton Miteybad (I am Jim Thompson. {Really.})
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To: chessplayer; All

Statoil is the govt run petroleum corporation in Norway...and are the largest fuel seller in Scandinavia. They have money up the yazoo and need to spend it


9 posted on 12/19/2012 8:40:40 PM PST by SeminoleCounty (Seems that the ones who understand little about the economy are economists)
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To: chessplayer

Why should it be illegal? Isn’t it good that the land is being put to good use?


10 posted on 12/19/2012 8:46:22 PM PST by LifeComesFirst (http://rw-rebirth.blogspot.com/)
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To: chessplayer

Why are we allowing foreign governments to do this crap??

67% of Statoil shares are owned by the Norway government


11 posted on 12/19/2012 8:46:46 PM PST by GeronL (http://asspos.blogspot.com)
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To: LifeComesFirst

I think it should be illegal for foreign governments to do it


12 posted on 12/19/2012 8:49:01 PM PST by GeronL (http://asspos.blogspot.com)
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To: MichaelCorleone

You are unreasonably paranoid. This is about turning a profit by exploiting a resource, not ending sovereignty.


13 posted on 12/19/2012 8:49:25 PM PST by LifeComesFirst (http://rw-rebirth.blogspot.com/)
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To: chessplayer
I will never understand why it's not illegal to sell US land to other countries.

Then one won't understand that America is not really a soverign nation anymore. Find out who really owns our so-called sovereign nation. Find out why these pukes are putting more land into government ownership. Find out that when we default that this land is the collateral for China & others. Find out that we are a totally sold out piece of land.

14 posted on 12/19/2012 9:02:40 PM PST by Digger
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To: ltc8k6

There are those that think that “getting around Obama” was designed to put money in the pockets of Warren Buffet and Bershire Hathaway, since they apparently own a lot of the key railroads. I never looked into it closely, but it seemed plausible. Warren has a lot of rent-seeking behavior in his interactions with government.


15 posted on 12/20/2012 1:41:35 AM PST by FreedomPoster (Islam delenda est)
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To: Milton Miteybad

Re: post #8

I was just using Gates’ and Exxon’s name to mean people and/or corporations with the means to buy the land and invest the money to get to those resources.


16 posted on 12/20/2012 7:52:31 AM PST by MichaelCorleone (A return to Jesus and prayer in the schools is the only way.)
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To: chessplayer

It’s because political contributions from foreign corporations are not subject to the same regulations and reporting requirements as US corporations. Example: British Petroleum.


17 posted on 12/20/2012 8:09:32 AM PST by Justa
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To: LifeComesFirst

“You are unreasonably paranoid. This is about turning a profit by exploiting a resource, not ending sovereignty.”

Sure, from Statoil/Norway’s perspective.

But the report said they purchased the land in order to drill for oil/natgas.

But aside from that, you wouldn’t find it alarming to find out our state or federal gov’t allowed the sale of our land to a foreign government? Regardless of the alleged reason for the purpose of the sale?

It’s a moot point now because it looks like it didn’t happen this way, but the implications of a foreign government, whether friendly or not, gaining ownership of our land go far beyond simple economics.

I don’t think that would be an irrational fear.


18 posted on 12/20/2012 8:18:18 AM PST by MichaelCorleone (A return to Jesus and prayer in the schools is the only way.)
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To: knarf

I wonder how this purchase of O&G rights got by Mike Ross?


19 posted on 12/20/2012 8:31:10 AM PST by Roccus
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To: MichaelCorleone
But the report said they purchased the land in order to drill for oil/natgas.

But the report is incorrect in one or more material respects. Statoil didn't buy the acreage in fee. What they got was an undivided interest in oil and gas leasehold covering this 70,000 acres. There is a difference.

Under the leases in which they acquired an undivided interest, Statoil has the right to drill and to use as much of the surface as is reasonable necessary to explore for and produce the hydrocarbons. They have the right to do this under one or more oil and gas leases, which last for a term of years and as long thereafter as oil or gas is being produced in paying quantities. But they didn't buy the real estate itself; they bought an interest in an oil and gas leasehold covering some 70,000 acres. The report makes it sound like Statoil came in and just bought up the countryside, dispossessing anybody who happened to be on the land they were buying, which most assuredly did not happen.

For those who are unaware, mineral production almost always occurs pursuant to the terms of some sort of lease. Oil and gas companies don't purchase land in the same way you or I might buy 40 acres out in the country. They acquire leases or permits that authorize them to explore for and produce the minerals they're looking for.

It isn't that unusual for a foreign-owned company to acquire working interests in oil and gas ventures in the U.S., either. For instance, Chesapeake Energy sold an undivided 1/3rd interest in its Eagle Ford shale holdings to China National Offshore Oil Company (CNOOC) for $2.2 billion in 2010. Other domestic companies have brought in foreign partners into their ventures, as well. Through merger and acquisition, BP became the largest player on Alaska's North Slope, and a primary player in the gulf of Mexico.

Myself, I would view the CNOOC purchase (it's the Chinese, after all) with greater caution than anything involving Statoil, which is Norwegian.
20 posted on 12/20/2012 9:22:59 AM PST by Milton Miteybad (I am Jim Thompson. {Really.})
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To: MichaelCorleone

Then you must also be in favor of the US abandoning all of its overseas military bases to protect the sovereignty of foreign nations.


21 posted on 12/20/2012 10:25:12 AM PST by LifeComesFirst (http://rw-rebirth.blogspot.com/)
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To: MichaelCorleone

Then you must also be in favor of the US abandoning all of its overseas military bases to protect the sovereignty of foreign nations.


22 posted on 12/20/2012 10:25:17 AM PST by LifeComesFirst (http://rw-rebirth.blogspot.com/)
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To: Milton Miteybad

“But the report is incorrect in one or more material respects. Statoil didn’t buy the acreage in fee. What they got was an undivided interest in oil and gas leasehold covering this 70,000 acres. There is a difference.”

Okay , that’s a horse of a different color then. Thanks for taking the time to provide that information. You seem to have a good amount of experience in this area.

BTW, you’re not T Boone Pickens hiding behind the name ‘Milton’ are you? (only kidding)


23 posted on 12/20/2012 11:08:24 AM PST by MichaelCorleone (A return to Jesus and prayer in the schools is the only way.)
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To: MichaelCorleone
Nope. Not T. Boone Pickens. One look at the balance sheets for Milton Miteybad and T. Boone Pickens would remove all doubt or confusion. ;-)

My point was that the article was written by someone who has little or no understanding of the domestic oil and gas biz. By his/her poor choice of words, this author had some people concluding that there was something really sinister happening, when what Statoil had done was pretty much an everyday type of working interest deal.

Frankly, if it were up to Milton Miteybad, nobody who works in the capacity of a reporter or journalist would be permitted to write or opine about the oil and gas business, precisely because of this type of simple-minded approach that tends to mislead rather than inform.
24 posted on 12/20/2012 11:26:52 AM PST by Milton Miteybad (I am Jim Thompson. {Really.})
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To: Milton Miteybad
Evidently the author, like very many FReepers, is unaware of how CO&G rights were separated from surface rights generations ago in the East.
25 posted on 12/21/2012 5:24:27 AM PST by Roccus (POLITICIAN...............a four letter word spelled with ten letters.)
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