Capstone Green Energy Corp (fka CGRNQ)

[CaptWhizbang]

Since CPST is partnered with many clients in the oil and shale play in the USA and oil and gas around the world, the examination of the developing world market is of primary concern; especially when foreign companies are attempting to buy up as much Americas sources as they can..


Here is an excerpt from a recent article discussing the general overview and specific clients of CPST turbines

Price raises of Natural Gas will very likely be tied to the Asian companys buying up American producers to keep their own prices down.

The United States could become an exporter of liquified natural gas because supply and demand determines gas sales here, whereas sales in Asian markets and Europe are formulated on the price of oil. Sometimes, Cicio said, that works in the United States' favor when oil is cheap, but it can hurt when oil rises in price.

Foreign countries will do what it takes to get natural resources they need, said Mel Packer, an organizer with Marcellus Protest, a citizens group based in Washington, Pa., that opposes drilling because of environmental concerns.

"They're going to buy them where they can get them," Packer said. "If that means buying whole corporations to get the assets, that's what they're going to do."

Two companies — Cheniere Energy Partners and Freeport LNG Development — are seeking government permits to export liquified gas, according to the Federal Energy Regulatory Commission.

A Chinese firm, ENN Energy Trading Co., signed a memorandum of understanding to send 1.5 million tons of natural gas from Cheniere, a Houston-based company operating the Sabine Pass port in Louisiana.

“We are excited to participate in supplying natural gas to China,” Cheniere CEO Charif Souki said in a news release.

Two other port companies are expected to seek permission soon, said Biliana Pehlivanova, a natural gas analyst with Barclay's Capital investment bank in New York. One is Virginia-based Dominion Resources, which has Pittsburgh offices and owns a liquified natural gas terminal and port in Cove Point, Md. The facility could be converted into an export facility for Marcellus shale gas by 2015, but spokesman Dan Donovan said the company has not decided whether to do so and has not sought export permits.

Dominion's Cove Point facility takes in imported liquified natural gas from BP in Great Britain, Shell in the Netherlands and Statoil in Norway. Statoil and Shell are investing heavily in the Marcellus formation.

Last year, Warrendale-based East Resources sold its Marcellus interests to Royal Dutch Shell for $4.7 billion. Last month, Statoil, which has a $3.375 billion partnership agreement with the largest Marcellus leaseholder, Oklahoma City-based Chesapeake Energy, said it might drill as many as 17,000 Marcellus wells over two decades.

Other foreign companies with Marcellus shale interests are Mitsui and Sumitomo from Japan, the BP group from Great Britain, Atinum from Korea and Reliance Industries from India.

The Chinese National Offshore Oil Corporation tried to break into the American energy market in 2005, when it bid $18.5 billion to take over Unocal. It withdrew the offer after a political firestorm on Capitol Hill.

In 2009, CNOOC succeeded in entering the American market, if not exactly on land. It partnered with Statoil on four oil leases in the Gulf of Mexico. This time, no one protested.

In November, Chesapeake announced it would sell a third of its holdings in a Texas shale oil field called Eagle Ford to CNOOC for $2.2 billion. Statoil and Korea National Oil Corporation recently invested in Eagle Ford.

This year, CNOOC took a one-third share of Chesapeake's leases in two oil and gas fields in Colorado and Wyoming for $1.27 billion in direct costs and drilling expenses.

The Chinese have more connections to Chesapeake, but the extent isn't known. Chesapeake spokesman Jim Gipson said the company generally limits disclosures to those required by regulators.

Last year, Chesapeake said it sold $600 million in convertible preferred shares to “investors in Asia,” without specifying countries. The company disclosed a separate sale of preferred stock to investors including affiliates of the China Investment Corporation, the sovereign fund of the People's Republic of China.

Even though China has interest in American gas, it has untapped shale gas reserves that are 12 times higher than its traditional gas reserves, the U.S. Energy Department said last week.

Pittsburgh geologist Greg Wrightstone said China falls behind when it comes to technology to recover the gas and could learn by partnering with an experienced firm such as Chesapeake.

President Obama and Chinese President Hu Jintao addressed that problem in a formal statement announcing the “U.S.-China Shale Gas Resource Initiative” in 2009.

“The United States is a leader in shale gas technology and developing shale gas resources in a way that mitigates environmental risks," they said. "Bringing this expertise to China will provide economic opportunities for both the U.S. and China.”

It sounds to me we better start preserving our sources before they disappear.

http://triblive.com/x/pittsburghtrib/s_731595.html#axzz3G4Nk8R9z