Chesapeake Energy Corp. creates a joint venture with Total S.A. to drill Ohio Utica shale

http://www.cleveland.com/shalegas/index.ssf/2012/01/chesapeake_ener...

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0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on January 4, 2012 at 12:43pm

thanks for the link Mickey....i read the info.  Here again is another country buying in on our natural gas resources (25percent) and  Chesapeake again gaining from overseas deals.  Now if you are a landowner or a mineral rights owner that has one of these leases you may benefit from the influx of cash for it appears that they gain more money from the French company if Chesapeake puts in wells (per the info at that link).  (that is if they actually produce and are not just sitting there to fulfill a contract extension). Yet if you are a landowner that received like $100 per acre like outlined in the info which most likely does or does not have a good royalty percentage for the Lessor...then you are not that excited about having your natural resources tapped by other countries and not knowing when the final end of the lease is while others are getting thousands per acre and better clauses.

 

 

Permalink Reply by gary smith on January 4, 2012 at 1:05pm

you've pretty much summed up why this site exists,other than the thought that 'other countries'  are taking your natural resources. these companies are investing money in production from your land. if you signed a good lease,then you are in good shape. if you signed for a hundred, you should have been paying attention. until france or total launches an attack on the united states, all they are is investors in a company. your gas is like your corn or beef.

Permalink Reply by Mickey Shank on January 4, 2012 at 1:09pm

Here in Cleveland, my soon to be ex-home :),  the local channels are picking up on the the drilling and fracking . The potential returns are staggering to a person like me  and to see $$ fly out of the country like that is mind blowing. No US companies could match terms ?  Sad state of affairs here.

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on January 4, 2012 at 1:30pm

I am not sure that Cheasapeake reached out to the US companies with much effort ...they most likely had the foreign companies in their pocket already.    The money though that they receive should create jobs here in America so that is good..

and Gary , thanks for your input.   Have you read this discussion yet?  

http://gomarcellusshale.com/forum/topics/who-is-gail-and-what-does-...

My concern isn't just that foreign companies are buying up lease shares it is what they do with our leases if they decide not to drill but to sell to another for profit and to another and on going....sorta like 'gold'....the people that purchase, hold, then sell, and then buy, hold, sell.....ongoing but really if the reality was that the people would not be using paper money anymore and relying on gold then those that have gold need to increase their security as most do not own gold persay and all this hype about gold is that they are hoping that people will buy in fear of not using paper money.., yet realistically how could this country get back on exchanging gold per individual and household (it isn't realistic cause most folks cannot afford to purchase even an ounce of gold).  Of course the people today that can afford to purchase gold have a good investment for income...but not to go to a 'gold' exchange again as that isn't realistic for most of the public.

Yet in the selling of shares of the leases Chesapeake and other oil companies will eventually need to produce the 'gold' NG as these foreigners may go to war with 'them' if they don't.

The contracts that have new ideas/clauses that cover these areas are doing well most likely with a higher per acre upfront or better royalty percentages...it is the older leases that were done that really the Lessors (landowners) not only lost in the upfront monies and the royalty percentages or clauses that reduce the royalties....but now they do not even know who owns the resources that are pumped out of the ground and to whom they will ultimately be doing business with in the future.

 

Permalink Reply by Mickey Shank on January 4, 2012 at 1:49pm

Most everything I have read about Chesapeake has been negative throughout the drilling States.  I agree with you on the positive addition of local jobs, and to see the faces of some of the long time owners at lease signings was priceless. Being a retiree / transplant to the area, I consider myself lucky to have been in the right place at the right time. Now back to marking off the days before the check arrives, 

Permalink Reply by dr j on January 4, 2012 at 2:22pm

I guess I see it somewhat differently,  Total isn't taking money out of our country, they are actually putting it in.   In many cases these foreign energy companies are not only looking for return on investment but also insight into proprietary knowledge of how to drill these unconventional shale plays.

Permalink Reply by Jack Straw on January 4, 2012 at 2:45pm

Total is a multi-national oil company headquartered in France.

Total operates in many countries and employs people of many nationalities (including Americans)

Total trades on the NY stock exchange (as well as other exchanges).

Many of Total's shareholders are Americans.

 

Chevron is a multi-national oil company headquartered in America.

Chevron operates in many countries and employs people of many nationalities (including French)

Chevron trades on the NY stock exchange (as well as other exchanges).

Many of Chevron's shareholders are Europeans.

 

Exxon is a multi-national oil company headquartered in America.

Exxon operates in many countries and employs people of many nationalities (including many Europeans)

Exxon trades on the NY stock exchange (as well as other exchanges).

Many of Exxon's shareholders are Europeans.

 

Shell (aka Royal-Dutch Shell) is a multi-national oil company headquartered in Europe.

Shell operates in many countries and employs people of many nationalities (including very many Americans)

Shell trades on the NY stock exchange (as well as other exchanges).

Many of Shell's shareholders are Americans.

 

Nothing about this is simple.

Multi-nationals reduce their risks by investing all over the Globe.

Multi-nationals employ people from all over the Globe (talent has no borders).

In whatever country Multi-nationals operate, they leave a great deal of money behind (in the form of wages, taxes, royalties, purchases from local suppliers, etc.).

Nothing about this is simple.

 

JS

Permalink Reply by Mickey Shank on January 4, 2012 at 3:38pm

After reading the above responses, all well thought out and presented, I then read about gas rising to $4.00 a gallon soon. We are an oil abundant land who's government refuses to allow access to our very own resources, thereby sending our $$ out of the country , what are your thoughts on that ?

We are sending money, food and technology overseas to poor countries, most of which never makes it to those in need,  only to make the rich richer. 

The last part was just my rant,,,I feel a little better now. 

Permalink Reply by gary smith on January 4, 2012 at 4:16pm

i think 5 dollars a gallon will be more like it. the government is about to sock this country with new energy regs,'under my plan electricity rates must necessarily skyrocket' (obama) , and more class warfare.  the only thing we have that most of the world doesn't is our freedom. the world is investing in our freedom and their perception that we will hang on to it. everybody still wants to live here. any crisis and all the investment still comes here. God blessed us. us bless God.

Permalink Reply by Mickey Shank on January 4, 2012 at 5:30pm

Sadly, the first thing I will buy is a wood burner and a generator for the house as a back up. I would rather put up a small horse barn for strays but keeping my family warm comes first. 

Being a city boy transplant, and not religious, that is to say I believe in God but organized religion, I'm skeptical. Anyway, I go out every night I am out there and thank the lord for my life and what he has given me. I have 10 acres, 4 grandchildren and moved to a county embedded with honest hard working people as my neighbors. Enough food to put on the plates, help a few who need it and I sleep well at night,

The information I have received from all of you is outstanding ! I love when folks are confident enough to share knowledge and experience that may help a city boy like me get through the mumbo jumbo. So far, so good !!  Thank you all,,,,,

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on January 4, 2012 at 10:06pm

Jack,  thank you for this view about this..

Multi-nationals reduce their risks by investing all over the Globe.

Multi-nationals employ people from all over the Globe (talent has no borders).

In whatever country Multi-nationals operate, they leave a great deal of money behind (in the form of wages, taxes, royalties, purchases from local suppliers, etc.).

This is exactly why there is such a push from some in the USA to ignore the illegal immigration policies....there is so much waiting time for 'legal' visas and 'legal' immigration that when you see just how much these foreign countries are doing business in America and that are employing people also and backing up many of our American companies...then you can surely see why such a push to not have restrictions but to go global as 'citizens'.   I suppose most of the USA citizens haven't really thought about a 'global' citizenship versus being a USA citizen.  It is unfortunate though that many of the ones that are only seeking a quicker way to get in and stay in the USA feel the need to do so 'illegally' and thereby are mixed in with those who are illegally for reasons that most would not want in the USA.

You are right, nothing about this is simple....but surely it is at great cost...when our forefathers and their wives fought world wars to maintain the integrity to protect American citizenship when all along the push was for 'global'...perhaps they should have given up earlier (some would have lived).   As more and more increase comes to foreign investment, involvement, ownership, and control (i say foreign meaning most likely non-USA citizenship) then the USA will be immigrants (legal and illegal, in fact most likely non-distinction) as it won't matter being a USA citizen anymore.

  I see now how using foreign money to build in the USA has caused much of this after reading just your input here....I hadn't thought about that before cause when you think about it, those companies have been around for awhile and they aren't poor.  Many of our American companies as well do not want 'USA immigration policies" to get in the way of their doing hiring of foreigners (not necessarily because of low pay but many times cause they need the talent from their own country and the language) and if you have taken time to view the 'lag time' of receiving a legal work visa or even full USA citizenship..then this is the reason why some want the transition to all illegals becoming citizens automatically ..or just doing away with USA citizenship and replacing it with 'global'.  So not all 'illegals' are just mexicans and those who smuggle drugs or are terrists ...it would also be that these big oil companies would benefit with more 'globalization' policies in America than just looking at it from a 'USA' perspective.  Why even some of our media news stations are backed by Arabs in the large shareholder position (Fox news for example).  I happen to like Fox news.

http://thinkprogress.org/media/2010/08/24/115285/fox-stewart-alwaleed/

Permalink Reply by Joe on January 5, 2012 at 10:28pm

Foreign investment in U.S. shale booming

Companies from China, France are buying in.
By Simone Sebastian, simone.sebastian@chron.com
Updated 08:53 p.m., Tuesday, January 3, 2012

http://www.mysanantonio.com/business/article/Foreign-investment-in-...

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