E-Mail Address: Password:
Forgot password? [login]
Home Articles Stocks Faq About Us Contact Us RSS Feeds February 8, 2010
SEARCH:
Energy Tribune Jobs
(click here)
Featured Stories
Guest Opinions
Americas
Europe
Russia
Middle East
China
Australasia
India
Africa
Nuclear
Commentary
Print Issues
China And The “Denier...
China’s Oil Imports C...
White House Needs New...
India and China Face ...
The Botched Airline B...
Corn and Coal: The Co...
Obama’s “Clean Energy...
Married to Mendacity:...
Bryce v. Pickens Toni...
Robert Bryce Talks Wi...
Obama’s “Clean Energy...
China And The “Denier...
Corn and Coal: The Co...
Understanding E = mc2
12 Facts about Global...
Posted on Aug. 19, 2009

China’s Oil Power Play

If one is looking for a sign of the changing world order, the size and scope of recent Chinese moves in the energy field should serve the purpose.

It was only a few years ago that the US and its oil companies, in their quest to secure vital oil and gas, were accused of all sorts of transgressions from imperialistic exploitation to coddling corrupt regimes to finding pretexts to invade Iraq, twice. In retrospect it is not quite clear how much of “always blame the Americans even if you are wrong you are right” was justified, but one thing is certain. The insinuations implied that the US government and its foreign policy understood the importance of energy supply to its economy.

This is no longer the case, with the American national debate (and that of several other developed countries) consumed by climate change, carbon emissions, and the preposterousness of solar and wind energies as substitutes for real energy sources. While any realistic and even charitable estimate puts solar and wind as contributing less than 1 percent of world energy demand for the next 20 years, more than 85 percent will still derive from oil, gas and coal; this while world energy demand will increase by more than 40 percent. The lion’s share of the latter will go to China.

The concern for the 1 percent solution, while ignoring the 85 percent question, is tantamount to economic hari-kiri for the US and presents a huge opportunity for China to expand its energy interests worldwide and diversify its supply sources.

The signs of China’s soaring oil demand are obvious. After phenomenal economic growth in the first seven years of this decade, oil demand has grown double digits. A short-lived slowdown lasted for a few months after the dire headlines of last year’s economic crisis. But Chinese economic growth has bounced back to more than 8 percent. So did oil demand, which came back with vengeance. Last January and February, Chinese oil imports stood at 3.1 million barrels per day, compared to an average of 3.87 million barrels per day in 2008. But from March to June oil imports averaged over 4 million barrels per day and in July they jumped to an unprecedented 4.6 million barrels per day, close to a 20% increase over 2008 levels. (Source: China Customs, August 2009.)

International business newspapers are rife with stories and discussion s about blockbuster international oil and gas deals to take advantage of “the relatively low prices of overseas assets” as a senior company executive was quoted by China Daily on August 12. The most obvious deal is the rumored purchase of Repsol’s stake in Argentina’s YPF for some $17 billion. The buyers: China’s largest and third-largest oil companies, CNPC and CNOOC. If the deal happens it will be the largest-ever Chinese oil acquisition. (CNOOC’s failed attempt to take over Unocal almost four years ago to the day would have been slightly larger.)

The deal is one made in oil heaven. Repsol unloads an economically questionable asset, one that became so because of burdensome political troubles in Argentina. For the Chinese, expanding in South America on a grand scale is both a psychological milestone and key to diversification outside of their current assets in Asia Pacific, Middle East and much-criticized projects in Africa, headed by their Sudanese venture.

It is certain that large Chinese oil acquisitions will become commonplace. The likely next target will be in Venezuela, where an eager Hugo Chávez is waiting, and on the periphery of Russia, in particular Kazakhstan and Turkmenistan.

Almost overnight, the US and the EU will be reduced to mere bystanders while China moves into the geopolitical major leagues. Massive Chinese acquisition of energy assets, while the West is philosophizing on the future of the planet and carbon cap-and-trade schemes, will lead to a transfer of political and economic power that the modern world has rarely seen. Why the US would be willing to give up competing for what has arguably been the world’s most vital commodity and for which there is no credible alternative, is mystifying.

Stumble It!
Back Home   Back to Top
Related Articles
Add a Comment:
You must be a member to post comments. Please click here to sign up  
 
Article Comments:
fendi handbag
Posted: 01/06/2010 09:38 PM by Emily Jane

tennis racket manufacturers

tennis racket suppliers

fendi handbag

AF1 Plus Jordan Shoes Men

Nike ACG Shoes Men

 
 

Ed Hardy
Posted: 12/21/2009 06:33 PM by mxcm 428

your article is excellent,i really love it. hoping to read your following post

------------------------------------------------------------------------------------

Discount Ed Hardy

Cheap Ed Hardy Clothing

Ed Hardy Clothing Sale

Discount Ed Hardy Clothing  
 

Not that mystifying, actually
Posted: 08/22/2009 09:47 AM by Ed Magowan

The pace of the dumbing down of the American sheeple has accelerated in step with 'reality TV' and the constant political red herrings being tossed about on Faux News. To those of us who feel America could have been something special it's painful to watch. This could have been the last of the the great national civilizations, leading the world to a bright future. Like many teenagers, though, our country is struggling with adolescence and may not make it to a prosperous adulthood. I find Chinese / Asian culture and history interesting and think my children and grandchildren could adapt to a China dominated world; buy MY culture, civilization, history and politics began on the Acropolis.  
 
Ethics and survival of USA
Posted: 08/21/2009 05:37 PM by Paul Beaird

It is NOT mystifying to those of us who have come to understand Ayn Rand's condemnation of altruism, the morality of self-sacrifice. The right to life, liberty and pursuit of happiness? Why that's old-fashioned stuff from America's founding fathers. Nope. Today it's sacrificing man's means of transforming nature in order to live a human life...to what? To the environment, to mother Earth, to the intrinsic value of a man-free planet, to the poor, to anything BUT your life. So, those who have seen how the US prospered are copying it to the limit of their understanding, while America yields all her moral and practical strengths to altruistic ethics. What you and I need is a return to the rights of the individual person, those named in the Declaration of Independence, and insist that our government get out of the way of private industry, which could restore our productivity and access to sources of energy barely dreamed of. Or, don't you know Who Is John Galt?  
 
  
 
Corn and Coal: The Cornerstones of Obama...
By Robert Bryce 
Feb. 5 2010, 5:47 EST
US Biodiesel: The Never-ending Subsidy S...
By Russ Finley  
Feb. 3 2010, 4:17 EST
China And The “Deniers”: Why Climate Cha...
By Michael Economides, ET editor in chief, and Xina Xie, ET China correspondent 
Feb. 2 2010, 11:41 EST
Obama’s “Clean Energy” Pandering: His St...
By Robert Bryce 
Jan. 29 2010, 4:10 EST
Married to Mendacity: Growth Energy Cont...
By Robert Bryce 
Jan. 27 2010, 4:27 EST
Chinese Coal Prices Soar, Power Producer...
By Xina Xie 
Jan. 25 2010, 11:43 EST
White House Needs New Look At Energy
By Michael J. Economides, Editor-in-Chief 
Jan. 22 2010, 12:49 EST
Bryce v. Pickens Tonight on Fox Business...
By Robert Bryce 
Jan. 21 2010, 2:36 EST
America’s Future Auto Fleet: Electric Ca...
By G. Allen Brooks 
Jan. 20 2010, 12:30 EST
2009 US Petroleum Trends
By Geoffrey Styles  
Jan. 19 2010, 12:50 EST
Robert Bryce Talks With Author Mark West...
By Robert Bryce 
Jan. 15 2010, 10:38 EST
China Pushes for Coal Gasification
By Xina Xie  
Jan. 14 2010, 12:01 EST
CLOSE
MORE
Beyond the Black Stuff: Big Oil is Being...
The Economist 
Feb. 5 2010, 11:37 EST
Energy Flow, Emergent Complexity, and Co...
By George Mobus 
Feb. 5 2010, 11:27 EST
High Hopes for Clean Energy Jobs
By Rebecca Smith 
Feb. 5 2010, 11:22 EST
Improved Lithium Ion Batteries
By Adam Frucci 
Feb. 5 2010, 11:09 EST
Shell to Sell Oil Leases in Nigeria
By Elisha Bala Gbogbo 
Feb. 5 2010, 11:02 EST
Oil, Commodities Approaching Bubble
By Christopher Johnson 
Feb. 5 2010, 10:47 EST
Pentagon Seeks Billions More to Hunt Ter...
By Lolita C. Baldor 
Feb. 5 2010, 10:45 EST
GE Says Iraqi Market Won’t Boom This Yea...
By Eduard Gismatullin 
Feb. 4 2010, 12:11 EST
EPA Biofuels Guidelines Could Spur Produ...
By Steven Mufson 
Feb. 4 2010, 11:56 EST
OPEC Members Ignore Oil Production Targe...
By Michael Hoven  
Feb. 4 2010, 11:41 EST
Biofuel Production Falls Far Short of Ta...
By Russell Gold and Siobhan Hughes 
Feb. 4 2010, 11:37 EST
Opec Says the Oil Supply Increase is Wor...
By BBC 
Feb. 4 2010, 11:21 EST
CLOSE
MORE
Gas Sites Spur Air Worries
By Ben Casselman 
Feb. 5 2010, 11:39 EST
Oil, Gas Output Rise in Colorado
By KRDO 
Feb. 5 2010, 11:20 EST
Comparison of US Plans to Cap Carbon
By Timothy Gardner 
Feb. 5 2010, 11:12 EST
Fed Doubts Energy States will Recover Fi...
By Stephen C. Fehr 
Feb. 5 2010, 10:50 EST
Congress Ups Debt Limit, Then Votes to C...
By David Lightman 
Feb. 5 2010, 10:41 EST
EPA’s New Biofuel Rules
By Geoffrey Styles 
Feb. 4 2010, 4:40 EST
Obama Touts His Alternative Fuels Plan
By John Broder 
Feb. 4 2010, 10:49 EST
Argentina Protests Over Oil Prospecting
By Sunday Morning Herald 
Feb. 3 2010, 11:25 EST
Oil and Trucking Industries Challenge Ca...
By Dale Kasler 
Feb. 3 2010, 11:12 EST
We Can’t Fight Two Wars at Once
By Alex Spillius 
Feb. 3 2010, 10:50 EST
Shell Invests Billions in Brazilian Etha...
By Elzio Barreto and Inae Riveras 
Feb. 2 2010, 11:16 EST
Venezuela Receives Bidders for Carabobo ...
By Dan Molinski 
Jan. 29 2010, 11:17 EST
CLOSE
MORE
Italy’s Nuclear Plans At Risk
By Israel Rafalovich, ET Roving European Correspondent 
Feb. 4 2010, 5:48 EST
U.K. Eyes Energy Reforms
By Selina Williams 
Feb. 3 2010, 11:19 EST
BP Profits Slide on US Refineries
By Robin Pagnamenta 
Feb. 3 2010, 11:03 EST
Jordan Wants Nuclear Power, Signs Agreem...
By Israel Rafalovich, ET Roving European Correspondent 
Feb. 2 2010, 1:15 EST
Demand for Natural Gas to Rise
By The Peninsula 
Feb. 2 2010, 11:27 EST
Gazprom to Extend Polish Contract on Eur...
By Tehran Times 
Feb. 1 2010, 11:56 EST
BP Chief Hails American Breakthrough in ...
By Terry Macalister  
Jan. 29 2010, 11:29 EST
Karzai: UK Troops Needed for 15 Years
By Ben Farmer 
Jan. 28 2010, 10:56 EST
Science Chief Calls for Honesty on Clima...
By Ben Webster 
Jan. 27 2010, 10:55 EST
European Offshore Wind Capacity up to 57...
By New Energy Focus 
Jan. 19 2010, 10:41 EST
Preserve Coal Plants to Keep Lights On
By Tim Webb 
Jan. 19 2010, 10:35 EST
France Cuts, Germany Debates Solar
By UPI 
Jan. 15 2010, 11:14 EST
CLOSE
MORE
Russia, Venezuela Step Up Oil Cooperatio...
By Mu Xuequan 
Feb. 1 2010, 11:28 EST
Belarus, Russia End Oil Supply Row
By Jacob Gronholt Pedersen 
Jan. 28 2010, 11:12 EST
Gazprom to Increase Gas Supplies to Euro...
By RIA Novosti 
Jan. 27 2010, 11:08 EST
BP Offers Technology, Expertise to Devel...
By RIA Novosti 
Jan. 22 2010, 2:06 EST
Poland to Deploy U.S. Missiles Near Russ...
By Judy Dempsey 
Jan. 22 2010, 12:46 EST
Ukraine Should Join Nord Stream Gas Proj...
By RIA Novosti 
Jan. 19 2010, 10:50 EST
U.S. Dethroning Russia as Gas King
By Anatoly Medetsky 
Jan. 14 2010, 10:57 EST
Turkey Approves Russian Gas Pipeline
By CCTV 
Jan. 14 2010, 10:53 EST
Turkmenistan Resumes Gas Supplies to Ru...
By China View 
Jan. 11 2010, 2:15 EST
Russia, Belarus End Oil Supply Talks Wit...
By China View 
Jan. 11 2010, 2:11 EST
Venezuela, Russia May Develop More Orino...
By Jose Orozco 
Jan. 4 2010, 10:46 EST
Russian Seaborne Crude Oil Exports Sched...
By Alexander Kwiatkowski 
Dec. 30 2009, 10:59 EST
CLOSE
MORE
Iraqi Officials Lament Failure To Refine...
By Radio Free Europe 
Feb. 4 2010, 11:50 EST
Gas Transfer to Europe Key in Turkey, Ir...
By Today’s Zaman 
Feb. 4 2010, 11:44 EST
Afghan Fight is Coming
By Rod Nordland 
Feb. 4 2010, 11:18 EST
Oil Majors Move in on Iraq
By Oil Voice 
Feb. 4 2010, 11:12 EST
Dubai Discovers New Oil Field
By Adam Schreck 
Feb. 4 2010, 10:53 EST
Oil Demand Recovery Underway
By Trading Room 
Feb. 2 2010, 11:25 EST
Saudis Want Taliban to Expel Bin Laden
By Abdullah Al Shihri 
Feb. 2 2010, 11:01 EST
Iran Plans To End Energy Subsidies
By Andres Cala, European correspondent 
Feb. 1 2010, 12:36 EST
Bulgaria and Turkey Agree on Natural Gas...
By Reuters 
Feb. 1 2010, 11:54 EST
Lukoil to Develop Iraq Supergiant Oil Fi...
By Peoples Daily 
Feb. 1 2010, 11:44 EST
US Beefs Up Missile Defense in Persian G...
By Robert Burns 
Feb. 1 2010, 11:25 EST
Iran withdraws from disputed oil field i...
By World Tribune 
Jan. 29 2010, 11:31 EST
CLOSE
MORE
China may Renew Record for Crude Oil Imp...
By China Post 
Feb. 5 2010, 10:57 EST
China’s Oil Giants to Develop Iraq Oil F...
By People’s Daily 
Jan. 28 2010, 11:21 EST
As China Rises, Conflict With West Rises...
By Katrin Benhold 
Jan. 27 2010, 10:31 EST
China’s Oil Imports Continued Upward Cli...
Michael J. Economides, editor-in-chief, and Xina Xie, China editor 
Jan. 26 2010, 10:41 EST
Sino-Kazak Pipeline Transports 20 mln to...
By Istock Analyst 
Jan. 25 2010, 11:14 EST
China’s Economy is Soaring
By Zhou Xin and Chris Buckley 
Jan. 21 2010, 10:53 EST
China’s US Purchases Up 300% in 2009
By Vincent Fernando 
Jan. 19 2010, 10:16 EST
China Completes 1st Phase of Oil Reserve...
By China Daily 
Jan. 18 2010, 10:57 EST
China Will Drive Future Car Demand
By NPR 
Jan. 12 2010, 10:21 EST
Cold Snap Triggers Power Shortage in Chi...
By AFP 
Jan. 11 2010, 2:36 EST
Oil Falls on Concern Investment May Slow...
By Ann Koh 
Jan. 8 2010, 11:33 EST
Cold Snap Spurs Power Rationing in China
By Chris Buckley 
Jan. 6 2010, 3:47 EST
CLOSE
MORE
Chevron Finds Natural Gas Off Australia
By Anna Driver 
Jan. 27 2010, 11:11 EST
Another Gorgon Deal to Supply LNG
By ABC News 
Jan. 8 2010, 11:42 EST
Australian $90 Billion Gas Megadeal with...
By Felicity Williams 
Jan. 7 2010, 2:22 EST
Chevron Finds More Gas Off Western Austr...
By The Sunday Morning Herald 
Dec. 15 2009, 10:32 EST
New Zealand on Verge of Oil Boom
By Oil Voice 
Nov. 24 2009, 4:01 EST
Apache, Kuwait Join Chevron In Wheatston...
By Angel Gonzalez 
Oct. 23 2009, 11:45 EST
Chevron Pushes Forward On Gorgon
By Geoffrey Styles  
Sep. 21 2009, 10:08 EST
The Ghost Fleet of the Recession
By Simon Parry 
Sep. 14 2009, 11:52 EST
Australian Parliament Rejects Carbon Tra...
By Reuters Staff 
Aug. 13 2009, 10:43 EST
North Korea ''Test Fires Missiles''
By BBC Staff 
Jul. 2 2009, 11:14 EST
North Koreans Condemn U.S. and Sanctions...
By CHOE SANG-HUN 
Jun. 26 2009, 12:36 EST
Wind Turbines Killing Sleep Deprived Goa...
By Telegraph Staff 
May. 22 2009, 11:08 EST
CLOSE
MORE
India Suggests Deregulating Gasoline, Di...
By Sunil Raghu 
Feb. 3 2010, 11:23 EST
African Oil Fields on India Radar
By The Financial Express 
Dec. 9 2009, 4:35 EST
Bangladesh to Revive Debate Over Myanmar...
By Pipelines International 
Nov. 13 2009, 11:46 EST
RIL Discovers Oil in Cambay Basin
By Business Standard 
Nov. 10 2009, 2:38 EST
India, Scotland Join Hands On Renewable ...
By EE Times India 
Oct. 16 2009, 11:48 EST
Indian Subcontinent Weighs Nuclear
By Priyanka Bhardwaj and Michael J. Economides 
Oct. 8 2009, 11:59 EST
Cameco Upbeat on Canada-India Nuclear De...
By Cameron French 
Oct. 2 2009, 12:13 EST
Reliance Natural Seeks Dismissal of Gove...
By P.S. Patnaik and Gaurav Singh 
Sep. 18 2009, 11:05 EST
Tangguh Plant To Ship Less LNG
By The Jarkata Post 
Sep. 4 2009, 12:05 EST
Repsol Natural Gas Lot Production To Sta...
By Reuters 
Aug. 28 2009, 11:52 EST
India’s Coal Needs Fuel Overseas Push
By Priyanka Bhardwaj 
May. 28 2009, 4:25 EST
India Chooses Coal, Not Kyoto
By Priyanka Bhardwaj and Robert Bryce 
May. 11 2009, 12:39 EST
CLOSE
MORE
Angola Oil Pipeline Attacked, by Swordfi...
By Matthew Clark 
Feb. 4 2010, 12:29 EST
Nigeria’s Oil Pipeline Sabotaged
By BBC 
Feb. 1 2010, 11:05 EST
Nigerian Militants Call off Oil Truce
By Scott Baldauf 
Feb. 1 2010, 11:02 EST
Nigeria, UAE Supplies put OPEC Crude Pro...
By Iheanyi Nwachukwu  
Jan. 27 2010, 11:05 EST
Nigeria Hopes to Fulfill Oil Contracts S...
By Reuters 
Jan. 26 2010, 12:05 EST
Uganda to Block British Oil Bid
By AFP 
Jan. 22 2010, 2:00 EST
Two Million Nigerian Vehicles to Run on ...
By Guardian Newspapers 
Jan. 20 2010, 11:36 EST
Pirates Free Oil Tanker After Record Ran...
By Abdi Guled and Abdi Sheikh 
Jan. 19 2010, 10:14 EST
Dana Gas Finds Oil in Egypt
By Ed Attwood 
Jan. 12 2010, 10:45 EST
Sudan Seeks to Buy Natural Gas from Egyp...
By Sudan Tribune 
Jan. 11 2010, 2:27 EST
Dana Makes Discovery in Nile Delta
By Eric Watkins  
Jan. 8 2010, 12:06 EST
Anxiety Flares as Uganda Taps Oil
By Barney Jopson 
Jan. 5 2010, 10:55 EST
CLOSE
MORE
Obama’s Nuclear Power Policy
By Mark Clayton 
Feb. 5 2010, 11:16 EST
Iran Accepts West’s Nuclear Deal
By BBC 
Feb. 3 2010, 11:09 EST
Iran Urges Islamic States to Possess Nuc...
By People’s Daily 
Feb. 2 2010, 11:44 EST
US, Russia Near Deal on Nuclear Weapons
By Jonathan S. Landay 
Feb. 2 2010, 11:06 EST
Italy Seeks Arab Role on Nuclear Row
By The International News 
Jan. 26 2010, 12:21 EST
Russia Warns Against Rushing to Iran San...
By Reuters 
Jan. 22 2010, 12:27 EST
U.S., Russia Never so Close on Iran Nucl...
By Mu Xuequan 
Jan. 21 2010, 11:20 EST
India, Hungary Hold Talks on Civil Nucle...
By Sachin Parashar 
Jan. 20 2010, 11:44 EST
Iran Rejects Nuclear Fuel Deal
By BBC 
Jan. 20 2010, 11:09 EST
German Minister Tough in Nuclear Talks
By Reuters 
Jan. 18 2010, 11:26 EST
Ahmadinejad Hails Iran’s Nuclear Progres...
By RIA Novosti 
Jan. 15 2010, 11:24 EST
U.S. Eyes New Nuclear Plants in Climate ...
By Jeff Mason 
Jan. 12 2010, 10:59 EST
CLOSE
MORE
Dow Jones -103.84 -1.04 9,908.39
S&P 500 -9.45 -0.89 1,056.74
NASDAQ -14.85 -0.69 2,126.27
As of 02/08/2010 04:00 PM  
Energy Tribune -0.23 -0.24 98.75
Integrated -2.31 -1.63 139.32
Operations -0.26 -0.22 117.95
Services & Equipment -1.93 -1.08 177.01
Coal -9.67 -2.87 327.57
As of 02/08/2010 04:00 PM  
WH Clean Energy -0.68 -1.61 41.22
WH Progressive Energy -0.38 -0.55 69.13
As of 02/08/2010 04:00 PM  
Bid to Develop Oil Sector in Libya G...
Feb. 8 2010, 1:05 EST
[Read More]
Japanese firm to delay start of Egyp...
Feb. 8 2010, 1:04 EST
[Read More]
Wintry Weather Drives Energy Prices ...
Feb. 8 2010, 1:04 EST
[Read More]
Arab states may become solar energy ...
Feb. 8 2010, 1:02 EST
[Read More]
US average gasoline price in four we...
Feb. 8 2010, 1:01 EST
[Read More]
Indonesia considering slowdown in co...
Feb. 8 2010, 1:00 EST
[Read More]
China to increase LNG import
Feb. 8 2010, 12:43 EST
[Read More]
Cnooc Falls After Report of Possible...
Feb. 8 2010, 12:22 EST
[Read More]
Climategate Scientist Considered Sui...
Feb. 8 2010, 12:14 EST
[Read More]
[ click here ]
Home | Subscribe | Articles | Commentary | Stocks | Faq | About Us | Contact Us | Subscribers Only | RSS | All News
Advertise With Us