Energy Resources – finite and contestable

The following I just lifted from my favourite (they actually think) weblog site – The Oil Drum. Interesting, no?

[-] [new] RockyMtnGuy on September 1, 2009 – 1:51pm Permalink | Subthread | Comments top

Just today we read that China is paying C$1.9 billion for an oil sands investment.

And that’s part of an ongoing strategy: China is taking advantage of the current global economic downturn (and American inattention) to buy up all of the available oil reserves of the world.

I don’t think most Americans realize what is going on. When the American economy bounces back and the U.S. goes looking for new sources of oil to supply its growing economy, China is going to own all of it.

In this case, PetroChina paid about 60 cents (US) per barrel to buy up controlling interest in about 5 billion barrels of Canadian non-conventional oil reserves. That’s more than one years oil consumption for the U.S. (or two years for China) in one deal. There have been several other deals like that recently, involving Africa, Iraq, and other places.

Of course, they’ll have to pay $50-$60/bbl to produce the stuff and get it to China, but I think they think that’s a reasonable price to pay for energy security.

[-] [new] oldfarmermac on September 1, 2009 – 2:00pm Permalink | Subthread | Parent | Comments top

War is an extension of diplomacy.

Ain’t that the truth……
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