Russia and China Just Signed An Energy Deal. Why You Should be Scared.

Heritage Foundation ^ | May 31, 2014 | Stephen Moore

[Don Corleone]

A coalition between Russia and China with a candy-a$$ed administration like we have now and are likely to have again if Hillary is immaculated spells total disaster for the west and civilized society.

[X-spurt]

A sure thing if hitlery gets in.

[A message]

Not just 0bama but the whole Democrat party. The lot of them are bad for America.

[Carry_Okie]

To look at this with fear alone is foolish. At least the tiger won’t be as hungry for food.

[huldah1776]

Spiritual revival going on in China, too.

[Rockingham]

There is little reason for the US to view the new Russia-China pipeline as a threat and it may well, on the net, prove to work toward our benefit.

First of all, the new pipeline will take many years to build, and of its capital cost of $55 billion, some $30 billion is to be raised by Gazprom. This will strain both Gazprom and the Russian treasury and limit what other projects and mischief they can undertake.

Moreover, the inevitable delays and corruption that attend such projects will test and may sour the Russia-China relationship. Similarly, Russia is inclined to use energy exports as a political weapon and tends to be heavy handed about it. This is likely to antagonize the increasingly proud and prickly Chinese.

Finally, the project will supplant oil that China now imports from petrostates in the Mid East. Since Iran is first on that list, the new pipeline does not token well for the Iranian regime.

[catfish1957]

Finally, the project will supplant oil that China now imports from petrostates in the Mid East. Since Iran is first on that list, the new pipeline does not token well for the Iranian regime.

Also considering the US will soon be a net exporter of oil, the entire OPEC organization is going to be seeing demand heading south with a bullet. Which just breaks my little heart. /s

[jpsb]

The US import over 7,500,000 barrels of oil per day. We are not going to be a net exporter of oil anytime soon.

[First_Salute]

Tyler Durden at zerohedge.com had some story re the trading deal stipulates that payment will not be in U.S. dollars.

[catfish1957]

Maybe I should have been a little more clear around this point. I meant energy instead of crude. And as you can see, we are probably a net exporter by about 2018. I have also seen API articles which guess this event will take place more like 2020. I guess it is how you define "soon"

In any case, we are already putting a serious dent in the bottom line of OPEC, so my premise stands.

[Rockingham]

There is also a technological wild card in the works in the form of a small, practical “cold fusion” device known as an E-Cat. Supposedly, E-Cats use a metal catalyst and low energy nuclear reactions to convert dollops of electricity and hydrogen into a large quantity of heat. Although much doubted, E-Cat technology is being intensively researched and developed by several companies, with a US venture capital fund backing the most prominent design. Who knows, but a simple and impossible device may bring our era of fossil fuels to a close.

[lavaroise]

I think the headline is pretty subdued given the deal between China and Russia is far more reaching than the piece of paper Hitler and Stalin plaid on.

[Gene Eric]

I see that deal as a matter of mutual economic survival, not conquest.