According to a story from Reuters, BP could soon become a subsidiary of the Chinese oil company PetroChina.

If the merger goes ahead, the resulting company’s oil and gas reserves would dwarf reserves at Exxon Mobil.

Reuters bases its piece on a note from Standard Chartered which said: “With widespread media speculation on a possible takeover of BP, we examine various scenarios for a PetroChina acquisition.” It added: “We expect a full dose of scepticism on this as a real-world proposition, although we argue for the persuasive economics… We expect China would support such a deal, while regulators in the United States may raise antitrust concerns. While we cannot rationalise any argument that the deal should be blocked on grounds of national interest, local politicians may take a different view.”

No doubt China, after its efforts to buy Rio Tinto went so horribly wrong, would welcome BP into its fold.

It seems unlikely, however, that Chinese ownership of BP, making Uncle Sam’s own Exxon Mobil look like a minnow, is quite what Barack Obama was planning.

It just goes to show, there are always surprising consequences when lynch mobs are let loose.