MapleCorner
Joined: 21 Jan 2006
Posts: 47
Location: Maple Corner, Calais, Vermont, USA
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 Posted: Sun May 07, 2006 4:54 pm Post subject: China vs. US for world oil supplies |
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It is fairly indisputable that the world supply of oil is at or near paked out, and both the US and China both want to expand their economies. As recently as the early 1990's , China was an oil exporter. It is now the worlds second biggest oil consumer, and growing. China now uses 7 million barrels a day, or 8 % of the worlds production. It is predicted to reach the level of 12 million barrels a day soon, as the Chinese become richer, buy cars, heat their homes, etc. They will be then using 3 times the amout of oil they produce.
This is the reason why, after Chinese President Hu Jin-tao visited the US recently, he then went to Saudi Arabia, Morroco, Nigeria, and Kenya. During the visit to Saudi Arabia, the Chinese were promised delivery of 1 million barrels of oil a day by 2010.
| Quote: | | "They're going anywhere they can grab oil. That's the bottom line." - K.F. Yan, Beijing based energy consultant at Cambridge Energy Research Associates |
The oil producing nations can now play the Chinese againsth the US to raise prices and keep them there, so don't expect to see oil going low soon. China has made Africa a front line in its pursuit of resources for its expansion, tripling trade there in the past 5 years to $37 billion, and attempting to lock in commitments for energy assets and other natural resources such as copper. They are closing deals by promising to educate Africa's future elite in Chinese Universities and Military schools.
The main point to consider here is that there will be a fight, whether militarily, or economically, or other, and the fight will be mainly over the energy to expand. The losers will have to downgrade material wealth for their people.
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Steve Gallagher
www.picture.net |
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