Posted on 12/24/2004 5:42:21 PM PST by jb6
Venezuelan president Hugo Chavez has offered China wide-ranging access to the country's oil reserves. The offer, made as part of a trade deal between the two countries, will allow China to operate oil fields in Venezuela and invest in new refineries.
Venezuela has also offered to supply 120,000 barrels of fuel oil a month to China.
Venezuela - the world's fifth largest oil exporter - sells about 60% of its output to the United States.
Mr Chavez's administration, which has a strained relationship with the US, is trying to diversify sales to reduce its dependence on its largest export market.
Thirsty for oil
China's quick-growing economy's need for oil has contributed to record-high oil prices this year, along with political unrest in the Middle East and supply bottlenecks. Oil prices are finishing the year roughly 30% higher than they were in January 2004.
CHINA'S HUNGER FOR ENERGY
China's deadly coal mines In 2004, according to forecasts from the Ministry of Commerce, China's oil imports will be 110m tons, up 21% on the previous year.
China has been a net importer of oil since the mid 1990's with more than a third of the oil and gas it consumes coming from abroad.
A lack of sufficient domestic production and the need to lessen its dependence on imports from the Middle East has meant that China is looking to invest in other potential markets such as Latin America.
Mr Chavez, who is visiting China, said his country would put its many of its oil facilities at the disposal of China.
Chinese firms would be allowed to operate 15 mature oil fields in the east of Venezuela, which could produce more than one billion barrels, he confirmed.
The two countries will also continue a joint venture agreement to produce stocks of the boiler fuel orimulsion.
Mr Chavez has also invited Chinese firms to bid for gas exploration contracts which his government will offer next year in the western Gulf of Venezuela.
The two countries also signed a number of other agreements covering other industries including mining.
This is good. We not only finance China through our trade, we destabalize our oil resources, and plant seeds of alliances down the road. Nothing could be better.
For Presidente BUSH and other so called CONSERVATIVES IN NAME ONLY, it is the BOTTOMLINE of WAL-MART that matters.
I guess we should congratulate ourselves...
The little engine that could. And did. And never woke up.
Hell, we even gave them the Panama Canal and backed China over Taiwan. What are we thinking?
And gave up its boiler and coal to the nice Chinese people with the big guns.
This is Peak Oil in operation. OBL wants oil at $100; this may happen even without terrorists in Saudiland.
Yes, what are we thinking. Oh well.
ping
What is going on with the Chinese? I keep hearing more and more about them buying up oil from countries that supply their oil to us. Are the Chinese trying to set us up for a huge takeover?
Yes, China lacks morals. This country has replaced orthodox Marxism with an authoritarian and blatantly corrupted mixed economy.
NO they are our most favorite nation
increased demand will drive up price regardless of the geographic location of the hole it's pumped from, unless supply inreases increase accordingly.
It has nothing to do with the morality. Chinese are starting to drive cars (with the help of USA) - so they will need a lot of oil.
China is also creating an emergency 3 month supply for all their industry and military, just enough to supposably grab several nearby oil fields when war breaks out.
China cut a deal with Canada for oil during this past week. Canada is our number one source of oil.
Goverment has morals when it cares for the long term interests of the nation.
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