NYT: Foiled Chinese Bid for Unocal Stirs Worry for U.S. Oil

[DeepModem Mom]

Foiled Bid Stirs Worry for U.S. Oil
By JAD MOUAWAD
Published: August 11, 2005


When Cnooc, the Chinese government-owned oil company, dropped its bid to buy Unocal this month, it said political opposition in Washington had scuttled the plan. The question oil companies now face is whether they might suffer similar political retribution in their own dealings with foreign governments.

The fate of Unocal was finally settled yesterday when a majority of the company's shareholders approved a takeover offer from Chevron worth about $18 billion. The battle has left a bitter taste among many in the oil and gas industry because of the hostility displayed by lawmakers and the consequences this might have for United States oil companies worldwide.

Unocal's vote ends months of uncertainty after Cnooc's takeover attempt ignited a lobbying and political battle in Washington led by Chevron's allies in Congress. The struggle surrounding the takeover highlights how the question of access to oil and gas reserves remains one of the most sensitive and pressing faced by the industry. Yesterday, crude oil prices touched a new high of $65 a barrel in New York.

"It's a tremendous precedent-setter for a government to interfere and declare that national security is at stake," said Daniel Yergin, the president of Cambridge Energy Research Associates, an oil consultancy. "What is this going to mean for American oil companies from Algeria to Zanzibar?"

Governments from oil-producing countries like Russia and Venezuela try to put pressure on foreign corporations when oil prices are high. Other producers, like Mexico or Saudi Arabia, simply bar foreign companies from investing in their oil or gas sectors. In each case, the position of the United States government is fairly consistent: free markets are the best guarantee for the future availability of energy supplies....(T)hat position has been partly undermined by recent actions in Congress over Cnooc....


http://www.nytimes.com/2005/08/11/business/worldbusiness/11unocal.html

[lovuian]

1. What its saying folks is Cheney wants all the oil owned by US

not China Not Venuzuella Not Iran!!!

[napi21]

2. Well I guess the quote "Isn't life a bit*h" applies!

I don't think the US should be able to won all the oil either!!!!

Greedy basta*ds!

[anotherdrew]

3. get ready for the resource wars

'national security' = excuse. if it's about national security, then it's time to nationalise the oil companies. And if the Iraqi's get to share in their nations oil profits, the same should work here. What little still comes out of the ground in the US needs to be sold by the government, thus off-setting the need to tax folks. All other natural resources can follow.

[teryang]

4. What free markets?

America is the story of crony capitalism. Big capital takes no risks, gets government to insure its unethical activities, and forces its way onto the people at home and into markets abroad with government power.

[Supersedeas]

6. American capitalists need only apply

[truthisfreedom]

5. what's it say? effectively, bushco has nationalized US oil companies.

that's the bottom line. they have made them the most profitable companies in the world, and now they are stealing them.

just like arbusto always wanted.