| WASHINGTON, July 10
WASHINGTON, July 10 China expressed a desire to
increase its investment in U.S. shale gas during talks between
the two countries on Wednesday, an American official said.
Output from shale fields in the United States and Canada has
jumped in recent years with the increased use of drilling
methods such as hydraulic fracturing. Companies in China, which
has the largest shale reserves in the world, are keen to get the
know-how for drilling in such unconventional fields.
As the world's largest energy consumer, China is also
scouting for oil and gas supplies abroad to feed its energy
China already has about $5.5 billion invested in U.S.
natural gas, and said it also welcomes greater American
investment in China's own energy industry, the U.S.
administration official said.
Chinese and U.S. officials met to discuss energy issues as
part of the two-day U.S.-China Strategic and Economic Dialogue
in Washington this week.
"There's a very strong Chinese interest to be able to
benefit and learn from American technology and American
investment," the U.S. official told reporters on condition of
"There's a recognition on both sides that we both gain from
investing in each other's energy markets, and a commitment to
work to resolve obstacles that might exist to investment."
In a deal this year, the Chinese company Sinopec Group,
Asia's largest oil refiner, bought a $1 billion stake in the
Mississippi Lime shale formation from Chesapeake Energy Corp
But Chinese firms also face obstacles to investing in
certain strategic sectors, and China regularly complains that
the United States blocks access to plum investment prospects on
national security grounds.
U.S. companies, for their part, complain China heavily
restricts foreign investment in about 100 different sectors.
"(We discussed) China's interest as well (in) being a
recipient of American investment in unconventional oil and gas,
and especially gas, and the critical need to address some of the
constraints," the administration official said.
Both countries also talked about doing a better job of
sharing data on energy supply and demand, as well as on national
(Editing by Doina Chiacu)