Do Chinese Energy Deals Outsource US Technology?
As natural gas producers in the United States have had to divest some of their assets because of the low price market of gas, Chinese state oil companies have stepped in to buy these assets at a discount. While these companies are not able to export the oil from the acreage, what they are really gaining is a first-hand look at the unconventional production technology their U.S. counterparts are using.
Because the U.S. is so far ahead of the rest of the world regarding this technology, domestic firms are hoping to utilize their knowledge bases abroad. However, if these deals continue to happen, China and other major markets might not need our assistance in the future. Who could suffer if this continues?
A fracking expert that was first to the Chinese unconventional market
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The article Do Chinese Energy Deals Outsource US Technology? originally appeared on Fool.com.Joel South owns shares of Schlumberger. Taylor Muckerman owns shares of Halliburton. The Motley Fool recommends Halliburton. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.