Findings

Congress makes the following findings: (1) Oil and natural gas resources are strategic assets critical to national security and the Nation’s economic prosperity. (2) The National Security Strategy of the United States approved by President George W. Bush on September 17, 2002, concludes that the People’s Republic of China remains strongly committed to national one-party rule by the Communist Party. (3) On June 23, 2005, the China National Offshore Oil Corporation Limited (CNOOC), announced its intent to acquire Unocal Corporation, in the face of a competing bid for Unocal Corporation from Chevron Corporation. (4) The People’s Republic of China owns approximately 70 percent of CNOOC. (5) A significant portion of the CNOOC acquisition is to be financed and heavily subsidized by banks owned by the People’s Republic of China. (6) Unocal Corporation is based in the United States, and has approximately 1,750,000,000 barrels of oil equivalent, with its core operating areas in Southeast Asia, Alaska, Canada, and the lower 48 States. (7) A CNOOC acquisition of Unocal Corporation would result in the strategic assets of Unocal Corporation being preferentially allocated to China by the Chinese Government. (8) A Chinese Government acquisition of Unocal Corporation would weaken the ability of the United States to influence the oil and gas supplies of the Nation through companies that must adhere to United States laws. (9) As a de facto matter, the Chinese Government would not allow the United States Government or United States investors to acquire a controlling interest in a Chinese energy company.