Chesapeake Energy Corporation (CHK), CNOOC Limited (ADR) (CEO): Foreign Investment Flying Into US Oil & Gas Fields

After all, Chinese firms have a strong incentive to learn all they can about shale drilling because China allegedly contains shale gas reserves whose size may rival even that of America’s. Yet Chinese companies have virtually no experience in shale drilling. In fact, out of the sixteen Chinese companies that recently obtained drilling rights in Chinese shale gas fields, not a single one had developed a shale gas well before.

So far, however, foreign joint ventures have tended to focus on more liquids-rich plays, such as the Eagle Ford, Utica, and Wolfcamp plays. That’s not surprising since most energy producers have drastically curtailed gas drilling, due to an extended period of depressed gas prices. It will be interesting to see if the foreign joint venture trend accelerates when gas prices recover to a level that incents producers to rush back into gassier plays.

The article Foreign Investment Flooding Into U.S. Oil and Gas Fields originally appeared on Fool.com and is written by Arjun Sreekumar.

Motley Fool contributor Arjun Sreekumar has no position in any stocks mentioned. 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.

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