Newspaper article THE JOURNAL RECORD

Foreign Investment in U.S. Energy Industries Seen Increasing

Newspaper article THE JOURNAL RECORD

Foreign Investment in U.S. Energy Industries Seen Increasing

Article excerpt

Foreign investment in the oil and natural gas industries has risen over the past several years and is expected to continue this pattern, according to Petroleum Information, an industry information clearinghouse owned by the Dun & Bradstreet Corp.

Direct foreign investment in U.S. energy companies during 1985 was $28.1 billion, up 10.6 percent from $25.4 billion in 1984.

In 1985, the oil and gas industries received 15.4 percent of the total direct foreign investment in all U.S. businesses that year.

Foreign companies, according to Petroleum Information, invest in U.S. companies because of the open investment climate and the opportunity to obtain low-cost reserves and technical expertise.

Foreign investments are made by one of three ways: purchase of an entire company; formation of a joint venture combining the cash of the investor with the expertise of the U.S. firm; or purchase of reserves or undeveloped acreage without acquiring a stake in the U.S. company.

Foreign-affiliated companies produced 1.43 million barrels of U.S. oil per day in 1985, or about 13.4 percent of the daily total. About 6 percent of the total U.S. natural gas produced in 1985, or 1.018 trillion cubic feet, was produced by foreign-affiliated companies. . .

- The Federal Energy Regulatory Commission has delayed the effective date of the good faith negotiation procedures under Order 451 to Dec. 18.

The decision to delay the effective date was made after the commision received 60 requests for rehearings on the pricing rule and needed more time to consider the legal challenges and requests for clarifications.

The good faith negotiation rule allows a natural gas producer who is unable to renegotiate a price for old gas to abandon the contract and sell to another buyer.

The good faith negotiation rule is a central feature of Order 451, and had been scheduled to become effective Nov. 1. The commission voted to extend the effective date in an Oct. 31 order. . .

- Mobil Producing Texas & New Mexico Inc. has announced a gas discovery in the western Gulf of Mexico.

The High Island Block A-129 No. 2 wildcat appraisal well tested gas from perforations at 6,514 feet to 6,557 feet. …

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