Spiga

Global Energy Hunt.....

China, which runs a major drilling operation in Sudan. China's National Petroleum Corp. is going to invest $1 billion in a new refinery and pipeline there. Elsewhere in "Ugly Parts of Africa," another Chinese oil company recently made a $350 refinery deal with Algeria. Angola is receiving zero-interest loans from China in return for guaranteed oil sales. In Gabon, China recently inked a deal to rehabilitate old oil fields.
China's oil thirst doesn't stop in Africa. It has other deals lined up in Cuba, Venezuela, Kazakhstan, Iran, Turkmenistan and more.
India is no slouch, either. Indian company OVL is building a $1.2 billion refinery in Port Sudan and a 460-mile pipeline to Khartoum. Another firm, the autological Indian Oil Company is going to develop wells in Libya.
India has also signed an agreement with Bangladesh for a $1-billion pipeline to transport natural gas from Myanmar to Western India (Myanamar is on the shit list of human rights groups)...agreed to a $40-billion deal with Tehran to get supplied with liquefied natural gas (LPG) annually for the next 25 years ... signed another deal with Ecuador to drill for oil and gas ... committed $2.1 billion in investments in Russia's Sakhalin Island, which potentially contains as much oil as Alaska's North Slope.
Some of these deals couldn't be pursued by U.S. oil companies because of political constraints ... others just show India and China's intensive pursuit of energy world-wide. That's why I couldn't understand why so many Americans got outraged over the proposed Chinese deal to buy Unocal. Unocal is small potatoes compared to the rest of the global resources these nations are locking up in long-term deals.
And so, China and India are off and running, while Uncle Sam snoozes at the starting gate.

The global supply/demand balance is skin-tight. In fact, spare capacity is only 1%. Meanwhile, global demand is rising by 2.5% a year while existing, old reliable sources of oil are draining dry ... and new ones aren't being found!
Total Reserves in the Americas and Europe will be exhausted in the next 25 years, according to expert estimates. And new, much-heralded technology isn't extending our reserves - it's just helping us drain existing reserves faster!
The race for global resource is on. The $18.5 billion bid from China's state-owned oil company CNOOC to buy American oil and gas company Unocal is just the latest development in a race for global resources. And it's a race that energy-hungry China and India seem to be winning while Washington stands idly by!
America will become more - not less - dependent on Middle East oil as time goes by. Making matters worse, the Middle East is a geopolitical volcano, and it could make it blow up in our faces any minute.
America doesn't have an effective energy policy. In fact, it's worse than you probably realize. There are few provisions in the most recent energy legislation to support the development of alternative fuels and nothing done to increase fuel efficiency of cars and trucks. This means we'll end up MORE dependent on Middle Eastern oil - putting more profits in the hands of regimes that fund terrorists.

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