Dem. Lawmakers to Geithner: Block That China Oil Deal
- Posted on July 31, 2012 at 7:20am by
Becket Adams
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Rep. Edward Markey (D-MA), the top Democrat on the House Natural Resources Committee, on Monday urged Treasury Secretary Tim Geithner to block China’s state-owned oil company CNOOC Ltd. from purchasing a Canadian firm that drills in American waters, The Hill reports.
CNOOC should not be allowed to purchase Nexen Inc. for $15 billion unless all parties agree to pay royalties on Gulf of Mexico oil leases that currently allow royalty-free production, Rep. Markey wrote in a letter to Geithner.
Left to right: Sen. Chuck Schumer (D-NY), Treasury Secretary Tim Geithner, Rep.
Edward Markey (D-MA).
“I believe this merger could lead to a massive transfer of wealth from the American people to the Chinese government, and I strongly urge you to block this proposed transaction until, at a minimum, parties to the merger agree to pay royalties to the U.S. taxpayer on all oil produced off American shores or relinquish any ownership interests in these leases,” writes Rep. Markey.
If you’re wondering why, of all people, Geithner received this letter, here’s the reason: “Treasury leads the Committee on Foreign Investment in the United States, an interagency panel that vets foreign purchases of U.S. assets that could have national security ramifications.”
Rep. Markey isn’t the only lawmaker opposed to the Chinese acquisition.
Sen. Chuck Schumer (D-NY) on Friday told Geithner that the deal should be blocked unless China gives “better market access for U.S. businesses.”
But is there something else going on here? Why are these two Democrats so opposed to the deal? The Hill’s Ben German offers some insight:
CNOOC’s planned purchase gives Markey — an ally of House Minority Leader Nancy Pelosi (D-Calif.) — another opening to bash lucrative royalty waivers available to Gulf of Mexico oil-and-gas producers who hold certain leases issued in the 1990s.
But what’s the story behind the royalty waivers? Again, The Hill explains:
The [1995 Deepwater Royalty Relief Act] offered royalty-free Gulf production as an incentive for companies, at a time of low energy prices, to undertake costly projects in the Gulf’s deepwater frontier. Backers say it helped spur development in the now-booming region.
But due to an infamous Interior Department goof, leases issued in 1998 and 1999 lack “price thresholds” that end the royalty waivers when oil and natural-gas prices exceed certain limits. And an appellate court decision in early 2009 found the Interior Department cannot apply the price-based limits on royalty waivers for any leases issued between 1996 and 2000.
Of course, in the absence of “price thresholds,” this means that the feds loses out on “tens of billions of dollars” in federal royalty revenues.
“Giving valuable American resources away to wealthy multi-national corporations is wasteful, but giving valuable American resources away to a foreign government is far worse: it has the potential to directly undermine American economic and national security,” Rep. Markey said in his letter.
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psadie
Posted on July 31, 2012 at 2:36pmYou Dem idiots! WHY are we not drilling in the Gulf like before the oil spill? You have YET to re-issue permits to ALL previous companies with rigs there. WHAT THE HELL ARE YOU WAITING FOR??? I am so sick and tired of the ridiculous and stupid way we are handling our energy production while the rest of the world is in our backyard! I hope that all of you get your asses kicked in November because you deserve that and more.
Report Post »jman-6
Posted on July 31, 2012 at 2:22pmA well respected economist told me recently; “Because the US economy is so multi-faceted and complex that in order to keep unemployment at 8% or higher it must be done intentionally!! He said it is virtually impossible to have high sustained unemployment this long!”
Report Post »Apple Bite
Posted on July 31, 2012 at 2:03pmIncompetence is contagious. And this ordeal has proven such over and over again.
Report Post »Quest4Freedom
Posted on July 31, 2012 at 12:53pmYou ask me to speak my mind, but if I really said what I think of this current American-hating regime you could not print it!!! Anyway, my take on all of this is that these dems that are apparently walking the fence are scared of their high-ranking government positions. In other words, they CAN be voted out of office It is a crying shame that a portion of America cannot read the handwriting on the wall. They have too much faith that their congressmen and women actually care about them. I am waiting and hoping for a miracle.
Report Post »canada 1958
Posted on July 31, 2012 at 12:18pm“I believe this merger could lead to a massive transfer of wealth from the American people to the Chinese government, and I strongly urge you to block this proposed transaction
who the F-uck does this person have any rights to tell anouther country like canada that we can not sell our oil from canada to whoever we want to sell it to. this is the same nut job that voted against the xl pipeline we tried to sell our oil to our friends in the usa. But obama and his merry men did not want it so we had to look for other markets and china was willing to buy our oil and invest 15 billion dollars into alberta canada. we now supplu the usa with 25%+ of your oil needs and when things get moving like the xl pipeline we can bump that up to 40-50 % of your daily needs and obama would do the same in the usa you could be off oil from countrys that do not like the west but if obama wins anouther 4 years that oil will head out west to china and anouther line will be put in canada to sent it to east and send it to the uk and other countrys.its up to america to elect a goverment that wants to buy the oil from alberta canada
Report Post »michael48
Posted on July 31, 2012 at 10:52amjust another POS the “lush in charge” can add to the 51 years of walking disastor that he is….should have stayed with the community disorganizer thingy…we’d be about $5 Trillion ahead and have a future that does not include serfdom….
Report Post »80mesh
Posted on July 31, 2012 at 10:17amobummer to co pilot …..is flying straight down with all engines on fire they way to land this thing ???
Report Post »MiCurmudgeon
Posted on July 31, 2012 at 9:46amTell Obama to take a hike !!!! Build the Keystone pipeline !!!!!!!!!!!! Safe, economical crude oil and something Obama doesn’t know much about…………..JOBS ( a bunch of them are union jobs,even)
Report Post »historyguy48
Posted on July 31, 2012 at 9:00amBut, they are our FRIEND! So how can you say such things about them?
Report Post »I’m still selling that bridge in Brooklyn, if you believe what I wrote above, have I got a deal for you!
Detroit paperboy
Posted on July 31, 2012 at 8:55amUhh, I believe they said they would be selling to china after the democrats blocked the keystone pipeline……….no surprise here.
Report Post »Rolandd
Posted on July 31, 2012 at 8:49amYou all are missing the point, they need the royalties on the oil (you’ve got to pay for the socialist state some how), they don’t care if they sell it so long as they get the money for it.
Report Post »Shamrock241
Posted on July 31, 2012 at 8:13amJust more funding of our own DESTRUCTION
Report Post »lel2007
Posted on July 31, 2012 at 8:09am“Barack knows that we are going to have to make sacrifices; we are going to have to change our conversation; we’re going to have to change our traditions, our history; we’re going to have to move into a different place as a nation.” ~ Michelle obama
Report Post »starman70
Posted on July 31, 2012 at 9:04amTRANSLATED: Barak knows that blocking AMERICAN oil exploration in the Gulf of Mexico and other offshore sources, blocking the Keystone Pipeline, putting shale oil deposits in the front range of the Rockies off limits and destroying the coal industry in this country will move America into a “Diffrent place as a nation”. That “Different place” is turning America into a third world nation, based on raw socialism and leaving the door open to a Communist dictatorship.
Barak and his Chicago henchmen know exactly what they are doing. It‘s too bad that so many Americans don’t realize his plan and goals. But then, all they watch is the talking heads of the Lamestream media and that is, only when it doesn’t conflict with Dancing with the Stars and Jersey Shore. The majority of the American public either can’t or will not take the time to really research the true agenda of the Obama administration.
Report Post »Truth and Justice
Posted on July 31, 2012 at 7:40amWell then maybe Obozo and his Dem cronies should have thought about the deal a little longer before they denounced it!!!
Report Post »HKS
Posted on July 31, 2012 at 7:39amAmerica is not going bankrupt by accident, it’s a long running plan and Obama has it in full forward.
Report Post »americansfightingforcommonsense
Posted on July 31, 2012 at 7:37amI agree, Obama will make sure China gets it’s way here, but he will make it look as if he opposes the deal.
Report Post »Link8on
Posted on July 31, 2012 at 8:51amHe already routed the Canadian oil over there by blocking the Keystone Pipeline.
Report Post »Snowleopard {gallery of cat folks}
Posted on July 31, 2012 at 7:25amObama will never allow that to happen; he will do everything he can to ensure China’s deal goes through.
Report Post »HKS
Posted on July 31, 2012 at 7:38amYes, sadly if it has any chance of hurting the American economy Obama will see that it happens. The few sane people left in this country are dumbfounded at what this administration is doing to this country all while Liberals applaud. Pitiful , just pitiful.
Report Post »AJAYW
Posted on July 31, 2012 at 7:42amAgree, the known tax cheat Tim Geithner will do nothing.
Report Post »Link8on
Posted on July 31, 2012 at 8:54amChina produces so much solar energy, so we should be wondering why do they need more oil ?
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