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saif · Dec 23, 2004, 01:32 pm

Canada, the principal source of imported oil for the United States, has found a new growing market to increase competition for its vast reserves. The People's Republic of China, with its population of over a billion and rapidly growing economy has relied upon Yuganskneftegaz (Yukos) as its key supplier of crude oil. After having sent its sent its first trial shipment of 12,000 tons of crude by rail in 1999, the company now supplies over 7 percent of Chinese consumption, which is an estimated 400,000 barrels a day. However, financially struggling in part by a $27.5 billion back-tax bill, Yukos was forced to auction its core assets on December 19th 2004. Ten days before they announced they would reduce their imports to PetroChina one of the several state owned oil companies. Chinese officials are as well concerned of the ongoing conflict in the Middle East which supplies them by supertanker. As any disruption of this susceptible supply route would be catastrophic, China, the second largest crude oil market, is anxious to expand its sources of supply. Recent meetings between officials may possibly blossom as early as January with over $2 Billion dollars on the table. China is willing to invest in Canada’s previously economically challenged oil sand resources which require extensive capital to produce as compared to contemporary practices. With this new interest Canada now ranks behind only Saudi Arabia in established petroleum reserves. For this venture to be successful, the price of oil must remain elevated dropping no lower than thirty dollars a barrel. Canada could eventually export as many as one million barrels per day to China, this out of its potential exports that could total more than three million barrels a day. Last year, oil production from the sands surpassed one million barrels a day and can be expected to reach three million barrels within the next ten years. The bulk of production is currently exported to the Mid-Western United States. The increased flow of crude oil excelled Canada past Saudi Arabia, Mexico and Venezuela this year as the largest supplier of foreign oil to the United States. With the declining U.S.- Chinese relations including disputes over sales of Harpy Drones to China from Israel and allegations of Human Right Violations, this positioning could create a greater strain on an already volatile oil futures market.

saif · Dec 23, 2004, 02:49 pm

Oil and Stagflation - http://aei.org/publications/pubID.21...pub_detail.asp

a great article for those who see the growing demand upon our energy resources.

giuliano · Dec 24, 2004, 01:12 am

the growth in demand for energy supplies will become a key factor in the shaping of the global economy, and its respective powerhouse nations.

as china expands, it will place enormous strain on energy demands.

the US is working hard to protect its supply channels, installing US-friendly leaders in key oil producing nations such as iraq, afghanistan. kuwait owes it a huge debt. the saudis rely on US support.

venezuela's govt is the odd one out, remaining relatively unfriendly, having resisted US regime change there.

welcome to the new world order! china is in for some shocks if it thinks it's on a level playing field.

Dec 23, 2004, 01:32 pm	#1 (permalink) (top)
saif Sword of Truth Location: Elmira, NY Posts: 225	Chinese Grasp for Stability Canada, the principal source of imported oil for the United States, has found a new growing market to increase competition for its vast reserves. The People's Republic of China, with its population of over a billion and rapidly growing economy has relied upon Yuganskneftegaz (Yukos) as its key supplier of crude oil. After having sent its sent its first trial shipment of 12,000 tons of crude by rail in 1999, the company now supplies over 7 percent of Chinese consumption, which is an estimated 400,000 barrels a day. However, financially struggling in part by a $27.5 billion back-tax bill, Yukos was forced to auction its core assets on December 19th 2004. Ten days before they announced they would reduce their imports to PetroChina one of the several state owned oil companies. Chinese officials are as well concerned of the ongoing conflict in the Middle East which supplies them by supertanker. As any disruption of this susceptible supply route would be catastrophic, China, the second largest crude oil market, is anxious to expand its sources of supply. Recent meetings between officials may possibly blossom as early as January with over $2 Billion dollars on the table. China is willing to invest in Canada’s previously economically challenged oil sand resources which require extensive capital to produce as compared to contemporary practices. With this new interest Canada now ranks behind only Saudi Arabia in established petroleum reserves. For this venture to be successful, the price of oil must remain elevated dropping no lower than thirty dollars a barrel. Canada could eventually export as many as one million barrels per day to China, this out of its potential exports that could total more than three million barrels a day. Last year, oil production from the sands surpassed one million barrels a day and can be expected to reach three million barrels within the next ten years. The bulk of production is currently exported to the Mid-Western United States. The increased flow of crude oil excelled Canada past Saudi Arabia, Mexico and Venezuela this year as the largest supplier of foreign oil to the United States. With the declining U.S.- Chinese relations including disputes over sales of Harpy Drones to China from Israel and allegations of Human Right Violations, this positioning could create a greater strain on an already volatile oil futures market. (Click to expand) Come visit the Evolution of Thought Institute today!

Dec 23, 2004, 02:49 pm	#2 (permalink) (top)
saif Sword of Truth Location: Elmira, NY Posts: 225	Oil and Stagflation - http://aei.org/publications/pubID.21...pub_detail.asp a great article for those who see the growing demand upon our energy resources. (Click to expand) Come visit the Evolution of Thought Institute today!

Dec 24, 2004, 01:12 am	#3 (permalink) (top)
giuliano Tres COOL Location: melbourne australia Posts: 819	the growth in demand for energy supplies will become a key factor in the shaping of the global economy, and its respective powerhouse nations. as china expands, it will place enormous strain on energy demands. the US is working hard to protect its supply channels, installing US-friendly leaders in key oil producing nations such as iraq, afghanistan. kuwait owes it a huge debt. the saudis rely on US support. venezuela's govt is the odd one out, remaining relatively unfriendly, having resisted US regime change there. welcome to the new world order! china is in for some shocks if it thinks it's on a level playing field. sheik's progressive islam online* *with editorials by bishop