For the past couple years, more and more foreign energy companies are investing in the U.S. In 2012, $138 billion was invested in unconventional shale plays in the U.S., $26 billion of which came from foreign companies. A majority of this investment has come in the forms of joint ventures with U.S. exploration and production companies. On the surface, these deals don't seem to be worth the investment for these foreign companies. But by being a part of shale drilling operations gives them something that they don't have: expertise.
Thanks to the favorable regulatory framework in the U.S., many companies are given a little more freedom to experiment with drilling techniques. This has been a critical factor in U.S. companies pulling ahead as the premiere shale gas extractors. With so much practice here, these foreign companies want to learn how to do it right, so they too can tap their own shale reserves. In this video, Fool.com contributor Tyler Crowe discusses some of the companies that have been spending big on foreign investment and which American companies are benefiting the most from it.
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The article Are Foreign Oil Companies Taking Over North America? originally appeared on Fool.com.
Motley Fool contributor Aimee Duffy has no position in any stocks mentioned. Motley Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow them both on twitter @TMFDuffy and @TylerCroweFool, respectively. The Motley Fool recommends Total SA. (ADR). The Motley Fool owns shares of Devon Energy and 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.
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