| Analysis | 27 August 2012 |
How Beijing is targeting physical assets to maximise leverage over global energy prices
China's super smart acquisitions strategy
By Matthew Hulbert & Christian Brütsch
Just when you thought it was a good time for summer vacations, China has been busy rewriting the upstream acquisitions script, and doing so on an entirely new level. The Chinese do not limit themselves any longer to investing in far-flung and exotic locations, they're taking key stakes right inside OECD countries, with the clear intention of hedging their international price risk exposure. China is deliberately targeting North America (WTI) and North Sea (Brent) plays, alongside sinking major investments into North American LNG export facilities, to be able to dictate what happens on the trading markets.
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