This is GOOD news for the US Oil industry and the USA.
I see the usual 95% comments extremely negative and about China stealing our energy resource. They can’t come over here and truck it back to China. Any energy produced from the DJ basin stays here, some of the profits do go back to China and should because they are putting up the capital.
If they were not putting up the capital, CHK would not be exploring this currently economically unproven resource on the same scale. To explore it at a scale to deliniate the “sweet spots” will take 50-100 wells. To do so in 3 to 5 years (typical E&P land evaluation period), will require 12-20 rigs operating. Each operating rig results in 50-60 JOBS directly, not including residual local service economy benefits. Each well costs 4-6 million dollars to drill and complete, money into US the economy, regardless of the resulting production. If the acerage is all economic, it will take 1000s of wells to develop. Development happens here not in China. Made in the USA.
Oppositon to this development is reactionary and not very well thought out.
FYI, the Western PA, OH and WV Marcellus Shale natural gas drilling economic boom is also foreign backed, by Statoil (Norway) and ONGC (India), but developed by US companies.
I have one major concern and it is this -— are we not pumping out all the fresh water in our Aquifers and Great Lakes for free and shipping it to China for profit?
We are running out of fresh water folks.
Wouldn’t development of shale oil be a major water problem?
Most reasonable assessment of the situation is that the resource will be unworkable because they won’t be able to get sufficient water rights. But if you saw China buying up massive water rights in the US, then in that case be afraid - be very afraid.
Shipping water to China doesn’t make sense. Production of American resources like this can only be viable close to the site, but the product will go straight into international markets with the companies that develop it benefiting financially. China can, in fact, steal our water, but indirectly.