Too Many CNOOCs Spoil the Broth
Chinese oil firm withdraws takeover bid for Unocal
State-owned Chinese oil company CNOOC has announced the withdrawal of its $18.5 billion offer for Unocal, clearing the way for rival bidder Chevron Corp. — which, we rush to assure you, is safely ‘merican owned — to purchase America’s ninth-largest producer of oil. CNOOC, China’s largest offshore oil and natural gas company, stated it was departing the field due to intense political opposition to the purchase in Washington, D.C. China and the U.S. are the world’s two top consumers of oil, and CNOOC’s desire for Unocal was perceived as an attempt to gain a secure hold on diminishing global energy reserves, as well as a reaction to growing U.S. control over Middle Eastern supplies. Many Washington lawmakers opposed the deal as a threat to America’s long-term strategic energy interests. Wackily, a number of these same pols are beneficiaries of political largesse from Chevron.