Chesapeake and EnCana: "Let'$ Make a Deal"

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Many of the major North American drilling companies are selling off their assets to foreign investors; Chesapeake being one example. EnCana's deal with Kogas (Korea) is another. And if you read this article, you'll see that another major country, China, may soon be bidding on our natural resources. And guess what folks; that gas is not all staying here.

"But the most interesting implication of the deal is where the gas will be headed. Previously, it was assumed that HornRiver production would be hooked into Alberta gas infrastructure (there's a lot of Alberta production just across the provincial border in the Grande Prairie area), and then sent south to Chicago hubs.

But Korea is not buying into this play to sell gas to America. Korea Gas has an official mandate from Seoul to secure energy supplies for Korean domestic use.

The Koreans will almost certainly push to send the gas westward. To the British Columbia Pacific coast. Where it can be turned into LNG and shipped home. "

Should anything happen to shut down production and/or slow the flow from the North American gas plays, I wonder how their foreign investors are going to react? With billion$ being invested, I can only imagine the possibilities.

So as our "fellow American" and "good neighbor" companies continue to ramp up their patriotism theme, I'm beginning to wonder how many and which flags they should be waiving...

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