Posted on 07/03/2009 5:39:55 PM PDT by FromLori
China is scouring the world for oil as its expanding economy needs more crude to fuel its transportation and infrastructure needs. The world’s most populous nation is close to a deal to loan Brazil oil giant Petrobras $10 billion for off-shore drilling. The deal would help China lock up more than 100,000 barrels of crude a day.
China has been an aggressive bidder for rights to Iraqi oil fields although it is too early to say how that will work out. Sinopec (SNP) has bid $7.2 billion for oil company Addax Petroleum.
The latest move by China to get access to oil exploration and production outside its own borders may be a move to buy assets from a big European producer. According to Bloomberg, “Repsol YPF SA, Spain’s biggest oil producer, has been approached by companies interested in its $12 billion Argentine YPF unit.” The suitors are probably China National Petroleum and another mainland operation, CNOOC.
Governments in the countries where these large oil firms are based are going to have to decide whether they want so much Chinese capital going into companies that may be considered “strategic” to their nation’s futures. Oil will become more scarce over the next several decades. If China has locked up enough supply, it will control an asset that will be extremely important to GDP expansion in most developed and developing countries.
Governments have recently moved to block Chinese investments, or at least threaten to. The Australian government may have had a hand in keeping China mining company Chinalco from buying a large stake in metals firm Rio Tinto (RTP) which is based in London and has substantial assets in Australia. The battle for those kinds of critical assets, which will end up being a de facto battle between the Chinese government and other nations has only begun.
While the Zero administration is talking cap & trade, China is increasing its carbon footprint.
Stocking up oil-—for war?
>> China is scouring the world for oil as its expanding economy needs more crude to fuel its transportation and infrastructure needs.
Won’t that increase their carbon footprint?
ALgore, call your office.
For survival - oil is certainly a better asset than paper dollars with Obambi's printing press ramping up.
That is why they are protesting I am sure
Pass the popcorn!
“While the Zero administration is talking cap & trade, China is increasing its carbon footprint.”
Exactly. Fortunately, we have all manner of incredibly interesting tidbits about Michael Jackson’s life, death, weirdnesses, and his funeral to keep us engrossed. It’s a sign of how smart we are, you know, all those excess brain cells we got to spare.
Little Timmy was so terribly embarrassed that he lied some more. This is too damn funny. How stupid are Obama's corrupt stooges? They are too stupid for words.
Grrrrrr ! Snort ! Barf !
LOL !
Socialize the losses! That is what they are doing just like Iceland and our grandchildren will be picking up the tab.
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