Concerns over China Oil subsidiary of Unocal buying into US Energy infrastructure

Saturday, July 16, 2005

At a U.S. House Armed Services Committee meeting broadcast on CSPAN, former CIA Director Woolsey talked about the 18.5 billion dollar bid by the government-backed China National Offshore Oil Corporation (CNOOC) for the purchase of Unocal Corporation. He said this is definitely a strategic energy power move by China, and it was not for economic gain. Others are still worried about EMP.

U.S. Treasury Secretary John Snow heads a committee that can block the takeover. The U.S. House of Representatives passed a measure in June by a wide margin to form the committee under Snow. U.S. national security concerns are at stake according to analysts and many conservatives.

The United States reluctance to allow China's unsolicited bid for an American oil company surprises some. When Russia claimed their own oil companies could not be bought by Americans for both "strategic" and "national security" reasons, the United States was vehemently opposed to that position.