North America Is China's New Sandbox

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

It's almost as if the entire world needs a latter-day Paul Revere to ride across the various oil venues warning that "The Chinese are coming."

China is working feverishly -- and expensively -- to gather up as much of the globe's black gold as possible, with an eye toward supplying fuel to its own increasingly voracious economy. Thus far the Chinese, through various state-owned companies, have made or attempted to make deals with oil companies or governments in areas including Canada, South America, the Gulf of Mexico, and Africa. And now it appears they're about to land again on North America.

As you know, ConocoPhillips (NYSE: COP  ) announced not long ago that it would part with about $10 billion of its assets, in addition to half of its 20% interest in Russia's huge oil company, Lukoil. The total sales are expected to yield about $15 billion for Houston-based Conoco, the third-largest U.S.-based oil company.

It now appears that the international portion of China Petroleum & Chemical Corp. (NYSE: SNP  ) -- aka Sinopec -- will spend about $4.65 billion to acquire Conoco's 9.03% interest in the Syncrude Canada oil sands project.

One of Sinopec's partners in the project is Imperial Oil (AMEX: IMO  ) , which is 69% owned by ExxonMobil (NYSE: XOM  ) . In capturing a piece of Syncrude, Sinopec has won a position in the largest of the Canadian oil sands projects, a producer of about 280,000 barrels a day.

This latest deal is not the first time Chinese interests have spent money on the Canadian oil sands. Earlier this year, PetroChina (NYSE: PTR  ) parted with $1.89 billion for a portion of the Athabasca project. It also follows China's largest offshore operator, CNOOC (NYSE: CEO  ) , which picked up a Gulf of Mexico stake in 2009 and more recently agreed to acquire an Argentine oil and gas producer. Finally, this year, it has also acquired three blocks in Uganda in partnership with France's Total (NYSE: TOT  ) .

I continue to believe that no portfolio should be devoid of energy companies, whether oil and gas producers or oilfield services entities. Given the company's resolute approach to its planned restructuring, I must admit to looking more favorably at ConocoPhillips. Beyond that, the peripatetic CNOOC also appears to merit Foolish observation.

CNOOC is a Motley Fool Global Gains recommendation. Total SA is a Motley Fool Income Investor selection. Try any of our Foolish newsletters today, free for 30 days.

Fool contributor David Lee Smith hopes the Chinese bring some of their fine restaurants with them as they move about. He doesn't own shares in any of the companies mentioned above, but does welcome your questions or comments. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1153234, ~/Articles/ArticleHandler.aspx, 10/23/2016 5:58:29 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:01 PM
CEO $137.18 Down -0.93 -0.67%
CNOOC CAPS Rating: ***
COP $41.54 Up +0.05 +0.12%
ConocoPhillips CAPS Rating: ****
IMO $32.74 Up +0.09 +0.28%
Imperial Oil CAPS Rating: *****
PTR $71.14 Down -0.35 -0.49%
PetroChina CAPS Rating: ***
SNP $75.39 Down -0.21 -0.28%
China Petroleum an… CAPS Rating: **
TOT $48.28 Down -0.26 -0.54%
Total CAPS Rating: ****
XOM $86.62 Down -0.59 -0.68%
ExxonMobil CAPS Rating: ****