Meanwhile, Here Are 20 Signs That China Is Cornering The Global Oil Market "Meanwhile, Here Are 20 Signs That China Is Cornering The Global Oil Market Gus Lubin and Gregory White | May 28, 2010, 9:54 AM Image: The Globe And Mail In response to the BP's Deepwater Horizon disaster, President Obama has launched a 6 month moratorium on new deepwater exploration contracts and other oil drilling restrictions. But China isn't stopping. Just this month, state-owned Chinese companies have signed contracts worth over $50 billion in Canada, Brazil, Argentina, Iraq, Venezuela, and Nigeria. Most deal include an export clause, locking down energy supplies for the growing Chinese economy. If America's demand ever increases, these deals would present a serious problem. And Beijing has no qualms about offshore drilling." $1.3 billion to buy 45% percent of an Alberta project Deal signed May 2010: China Investment Corp. paid $817 million to take a 45% share of a Penn West Energy Trust project, worth up to 50,000 barrels per day. They also paid $435 million for a 5% stake of Penn West, according to Globe And Mail. Background: Canada has the world's second largest oil reserves, with relatively minuscule production. It needs foreign capital to fund major new developments in the Alberta Oil Sands, which include shale oil projects. $1.9 billion to buy 60% of more Alberta projects Deal signed August 2009: Petrochina paid $1.9 billion for a 60% stake in two properties held by Athabasca Oil Sands Corp, according to Globe And Mail. Background: Canada has the world's second largest oil reserves, with relatively minuscule production. It needs foreign capital to fund major new developments in the Alberta Oil Sands, which include shale oil projects. $3 billion to secure a long term oil shipments from Angola to China Deal signed 2006: Chinese state owned Eximbank provided a loan $3 billion to Angola, and agreed to receive a steady flow of oil from the country in return. Background: Because of the flow of Chinese funding into the country, Angola has doubled government spending to $25 billion and has been able to fore go IMF support. $3 billion to develop a Turkmenistan gas field Deal completed June 2009: China loaned Turkmenistan $3 billion to develop its South Yolotan natural gas field, with various export guarantees. In a separate deal, Turkmenistan opened a new gas pipeline between themselves and China, which will deliver 40 billion cubic meters of gas per year by 2013. Background: This amount is now more than half of China's yearly demand, which is only set to rise. China is now the key buyer in the region, rather than Russia. $3 billion investment in an offshore Brazilian oil field Deal signed May 2010: Chinese state company Sinochem is buying 40% of the offshore Peregrino oil field for $3.07 billion. Statoil, the Brazilian energy company, will be beneficiary of the 40% purchase. Background: Statoil is set to see a large cut in the oil it bring to market in the future for this up front fee. The field is set to start producing results by 2011. $3 billion for a 40% percent stake in an Argentine oil company Deal completed May 2010: China National Offshore Oil Corp will pay $3 billion to buy Argentina's Bridas Group, giving it a 40 percent stake in Pan American Energy LLC, according to Business Week. Background: China's new company owns 23 oil and gas production blocks in Argentina and Bolivia, and it may claim more through off-shore exploration. Argentina has failed to explore much of its long coastline and has relatively low production, according to NYT. $4.65 billion to buy 9% of a major Alberta project Deal signed April 2010: Sinopec paid $4.65 billion for a 9 percent stake in Syncrude Canada, according to Globe And Mail. Background: Syncrude is the world's largest producer crude from oil sands, and positioned to lead development of the Canada's Oil Sands.