Posted on 12/11/2004 11:51:12 AM PST by Willie Green
"Not in the drilling industry are you."
LOL!
Obviously!
BPMF is a wholly own subsidiary of the CNPC.'
China Petroleum International’s focus is to sell to other countries and it has gained acceptance in the oil and gas industry.
Li said the technology the company has imported from other countries has help its sales.
"Since 1998, we have been continually importing technology. We have been buying technology from the world’s leading oil manufacturers. A lot of it has been from the United States," he said. "We have found that the most-accepted products into the North America market are those which are made by that kind of technology."
Li said China Petroleum’s commitment to new technology is part of the Chinese government’s pledge to a more capitalistic business climate.
"We are trying," he said. "We call it a ‘market’ economy."
The China National Petroleum Corp. was formed when the Chinese government reorganized its existing petroleum agency in 1992.
"This is very normal in China," he said.
Li said politics plays no part in China Petroleum’s operations.
"There is nothing political here," he said. "We have no political target or intention whatsoever. The focus in China right now is leaning this way — it’s business. We are government-owned, but the government doesn’t get involved. We are a true corporation."
****
So the US companies are competing with a state owned company. Profits from the US companies go to the company and its shareholders, profits from CNPC go to the Chinese government. When government controls production-- what's that called? I forget.
And does free trade mean that US companies have to "compete" with a state owned company? Is that the definition of free trade? I forget.
"We are a true corporation". Uh huh.
That's all it takes! One man who knows exactly what the article is about.
Much thanks Tex for explaing it to us ignorant ones.
Also, why do you think that the U.S. Army is having trouble finding steel producers here in the States that can provie the armor for the vehicles in Iraq?
Deficits, near balances, and surpluses are neither good nor bad, they're neutral. Each type has its positives and drawbacks. I myself, would prefer to run a deficit so long as my leverage continued to net me larger returns above my debt servicing and as long as I maintained equity.
True, I am not. I just read what I read in the article which says,"David Russell, president of the US company, said that after conducting survey and analysis the BPMF's top drive has proved technologically advanced, qualitatively reliable and the best among all the companies."
I conclude that this is not a good thing for China to be best at something the US used to be best at.
The technology for top drives came from the US.
We were manufacturing small "top drives" many years ago as power swivels.
The purpose of the top drives today is to be able to drill down 94' stands of drill pipe instead of 31' joints, thereby making the drilling process faster because of a lack of connections of drill pipe.
All drilling contractors would like to be able to sell the fact that they can drill faster than their competitors.
Oil companies want faster hole because time is money.
One of the drawbacks of top drives has always been maintenance. They require a lot of expertise to keep them operating efficiently.
It's not that the US can't improve the top drives in the same way that the Chinese possibly have. It's a matter of economics. The Chinese can do it cheaper.
Nevertheless, top drives are a very minor part of the drilling operation, and, no matter who provides them, they will have little impact on the overall operation.
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