Posted on 05/18/2011 2:51:53 AM PDT by NRG1973
China has started rationing electricity to try and stave off an energy shortage that government officials say could be the worst since 2004.
State-owned power generating companies are dealing with high global energy prices that have cut their profits.
China has also banned the export of diesel, to try to meet domestic demand.
Power cuts occur every summer, but this year rising coal costs and a drop in hydropower output mean they could be much more severe.
(Excerpt) Read more at bbc.co.uk ...
This action is worthy of note because Japan has already committed to burning more diesel fuel for electricity while their nuclear plants are down. The end result is more upward price pressure on both crude oil and diesel fuel. That could affect the price we pay for crude oil and its distillate products here in the USA.
Here’s another article about the same subject:
Note the last sentance in the article:
“”Yet Tan acknowledged that higher electricity prices would likely lead to higher inflation.””
I don’t know if inflation in China will drive more inflation in the USA but it definately sounds ominous. We do, after all, import a lot of products from that country.
Do you think they’ll give us a break on our debts if we tell them it’s Obama’s fault?
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"Some provinces have reportedly started rationing electricity earlier this year including Hunan, Zhejiang and Anhui as well as Shanghai and Chongqing."
So our next emerging hyperpower can't provide enough power for its people or its industry. This despite massive coal reserves and nuclear technology.
Interesting chess pieces being moved around the world.
I recall someone laughing at me when I said China would go into the Middle East due to energy pressures...ticktock goes the energy clock.
Unrest in the Middle East is a perfect invitation for empire building and to the winner goes the spoils.
I bet there are plenty of WV coal companies that would love to mine more coal to ship to China. Too bad the miner’s unions voted for Obama.
I thought I read a while back that we already sell coal to China.
The best thing America can do is default on its debt payments and let the entire Bretton Woods financial structure collapse.
This is just the end of the greatest Ponzi scheme ever. The sooner it collapes the better. If George W. had had the foresight or courage to let it happen in ‘08 the fallout would have been much less severe than it will be now.
Unforttunately Ben Bernanke and Tim Geithner are in charge. Lord help us!
But, but, I thought the Chinese were leading the world in installing wind and solar.
China ? you have fuel problem ? we have lot’s of coal, we make deal, we set our price high.
Well, yeah, just yesterday the Chicoms themselves mentioned that there are six times as many air conditioners in Chinese big cities than there were at the turn of the century. And people can’t really live in those big hi-rises w/o A/C. So what they’re saying is never mind industrial growth——they have to cut back industry to keep the A/C on. Another five year plan in the terlet! It’s not just inflation but their own internal unbalanced growth that’s upsetting the Chicom applecart.
They do not have the infrastructure to support a large, rich, urban society. They do not have the resources to support a modern consumer society. They do not have the financial or political systems in place to support an innovative industrial society. They do not have the water or agricultural resources to feed themselves. They do not even have a freely convertible currency. A lot of foreign investors are waking up to the realities of doing business with a kleptocratic regime.
Something is going to give in China. Maybe not this year, or next year, but soon.
You think Daffy would promise China all the oil they wanted if they intervened on his side in Libya? If a Chinese container ship showed up with a battalion of PLA and a full AAA missile battery on board, and deployed into Tripoli, would NATO airstrikes continue?
Unrest in the Middle East is a perfect invitation for empire building and to the winner goes the spoils.
It ain’t gonna be about just Libya.
China uses 7m bpd. Entire Libyan production is only 1.8, probably much less now. Oil is fungible. Doesn’t work like you describe. There’s absolutely no incentive for the ChiComs to insert themselves like that.
That being said, it’s an interesting scenario.
We seem to have the same problem. Personally, I blame the envrio-whackos.
Oh there’s absolutely no question about it. There are INSANE internal soci-economic stresses that exist. And you can’t break the laws of economics.
Something *will* give.
I predicted a Chinese move to capture the Siberian oil fields while making a simultaneous move down into the middle east.
it would make more sense for them to start pumping huge amounts of money into central asia. Then start building military bases to monitor their investments and step in if theres a problem. This would give them the ability to secure more crude and give them a quick shot to the middle east. Russia is pretty well neutered now and in a few decades they won’t be a threat to anyone.
I will say oil or no oil I would love to see China taking a more active role in the middle east. They don’t play nice with “nation building”.
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