Free Republic

THE foreign secretary Jack Straw sought to distance Britain yesterday from comments by President George W Bush that he would not rule out a military strike against Iran. It came as diplomats gave warning that British attempts to solve the crisis prompted by Tehran’s resumption of its nuclear programme last week were doomed to failure. Bush raised the temperature by giving an interview to Israeli television from his ranch in Crawford, Texas. Asked if he would consider force, he replied: “All options are on the table.” He added: “The use of force is the last option for any president and...

China’s top offshore oil and gas producer, CNOOC Ltd., will begin operations this year at a gas field in the East China Sea despite a territorial dispute with Japan. ..CNOOC Chairman Fu Chengyu told reporters on Tuesday he expected the Chunxiao field, located south of Japan, to begin operations in August and September... ....On Monday Japanese media reported Japan had demanded that China halt construction at the Chunxiao natural gas field. Hydrocarbon deposits were found in the early 1970s... In 2004 China’s construction of the Chunxiao natural gas production plant 5 kilometres (3 miles) from the disputed area aggravated tensions...

China National Offshore Oil Corporation is considering a nearly $14bn (£7bn, €10.6bn) takeover of Unocal of the US. Sinopec, another Chinese state-controlled oil group, has struck a $70bn deal to buy Iranian crude oil and liquefied natural gas over three decades. China has sent $6bn to Rosneft, the Russian company that bought the main production unit of the embattled Yukos oil group, as advance payment for oil supplies. India has just reached a $40bn agreement to import LNG from Iran and develop Iranian oilfields, and is promoting pipeline projects to bring oil and gas across neighbouring countries to supply its...