) $15.1 billion offer to buy Canada's
Nexen, if completed, will be the largest
international acquisition to date by a Chinese energy firm
. The Cnooc/Nexen deal may also just be the tip of the iceberg when
it comes to energy deals involving Chinese producers.
), China's largest oil company,
said in 2010 it would spend $60 billion
on acquisitions over the next decade. Sinopec (NYSE:
), Asia's largest refiner has not been shy about making
international asset purchases, either.
What may dampen China's appetite for energy deals in the
waning demand for crude
. However, if and when the global economy starts registering
consistently positive growth numbers, China's oil demand and desire
for deals will rise. These are some of the ETFs that could
First Trust ISE-Revere Natural Gas Index Fund (NYSE: ) FCG has
frequently . As it pertains to the theme of Chinese energy
acquisitions, FCG is particularly relevant because this ETF's
constituents are likely to engage in asset sales, not necessarily
outright sales of themselves.
That is an important factor because as the U.S. government
showed when Cnooc tried to acquire Unocal several years ago, it is
not fussed on the idea of Chinese energy firms buying U.S.
counterparts. Asset sales are a different story. One FCG
constituent, Chesapeake Energy (NYSE: ), has already sold billions
of dollars worth of shale assets to Cnooc.
Global X FTSE Argentina 20 ETF (NYSE: ) Despite its vast energy
and minerals riches, Argentina . That alone makes Occidental
Petroleum (NYSE: ) seem quite smart for selling its Argentine
assets to Sinopec in 2010.
However, Argentina has not shown any overt hostility to Chinese
resources firms looking to do business there. With Cnooc and
Sinopec already active in Argentina, the South American country
makes for a logical destination for acquisitive Chinese energy
Market Vectors Unconventional Oil & Gas ETF (NYSE: ) The
newly minted FRAK makes for an obvious addition to this list for
two reasons. First, many of the ETF's largest U.S.-based holdings
either have been or could be voracious sellers of shale assets.
Second, 23.5 percent of FRAK's weight is devoted to Canadian
companies. If the Cnooc/Nexen clears regulatory hurdles, that will
be another sign Canada is open to business for Chinese oil
Guggenheim Canadian Energy Income Fund (NYSE: ) See above. The
Guggenheim Canadian Energy Income Fund's 32 holdings are all
Canadian firms. That number could drop to 31 because Nexen is ENY's
smallest constituent. ENY is home to enough small- and mid-cap
names that it is fair to say any of China's big three oil companies
could easily afford to acquire at least a third of this ETF's
For more on energy ETFs, click .
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