Associated Press BP PLC CEO Tony Hayward
THE WALL STREET JOURNAL
WSJ BLOGS JUNE 10, 2010
By Michael Corkery
While it is difficult to know for certain what the Obama Administration believes will be the end game for BP, Deal Journal is pretty sure it isnt this: A take over by PetroChina, a deal that would give the Chinese oil giant a huge hold on the worlds energy supplies.
And yet analysts at Standard Chartered Bank are making waves this morning with a report that floats out the idea of a PetroChina-BP merger.
PetroChina, which has a $60 billion war chest for acquisitions, is seeking to tap into overseas reserves to feed Chinas insatiable demand for oil. According to Bloomberg, Chinese demand for crude is expected to rise at 15 times the rate of the demand in the US. And acquisition of BP would give PetroChina access to 18 billion barrels of oil and gas reserves around the world a huge boost to its overseas supplies.