Fueling the dragon: China's race into the oil market
Here's an excerpt:
In the Western Hemisphere China concluded oil and gas deals with Argentina, Brazil, Peru, and Ecuador. But its main country of interest is Venezuela, U.S.' fourth largest oil supplier. A series of oil agreements signed in early 2005 allow Chinese companies to explore for oil and gas and set up refineries in Venezuela. Chinese state-owned oil companies have also begun seeking ambitious oil deals in Canada, the top petroleum supplier to the U.S. China’s continued penetration into the Western Hemisphere could have profound economic and political implications for the U.S. Considering the fact that both U.S.’ and Mexico’s domestic crude production are falling, the U.S. cannot afford to lose chunks of the crude produced by the two countries that together supply a third of its oil imports. With less oil available to the American market the U.S. will be forced to seek this oil elsewhere, primarily in the Middle East, hence becoming more dependent on this tumultuous region.
Luft's piece touches on the battle between China and Japan for potential oil/gas turf beneath the East China Sea. Things are not comfy there right now, I'd say.Here's a series of solid pieces and threads that include Cnooc's attempt to buy Unocal in 2005. More insightful and resourceful than the average stock message board.
PekingDuck.org: America's paranoia over China's bid for Unocal
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