Chinese and French companies have announced large investments in US shale oil and gas projects as they seek to benefit from the country’s controversial boom in “unconventional” resources.
On Tuesday Sinopec, China’s second-largest oil company by market capitalisation, unveiled a $2.5bn deal with Oklahoma-based Devon Energy to invest in five new development areas from Ohio to Alabama. Separately, Total of France said it is investing $2.3bn in an Ohio oil and gas joint venture with Chesapeake Energy and EnerVest of the US.
International groups are keen to increase exposure to unconventional US energy resources despite the environmental controversy over “fracking”, the injection of water, sand and chemicals into wells to crack rocks and release oil and gas.