| In The News #50 >> | ||
>> TITLE China's Thirst for Oil Lead Story-Dateline: >> SUMMARY China's economic growth has pushed the nation to become the number two consumer of petroleum after the U.S. Oil imports are up 30% over the previous year. By 2010 expectations are that China's oil imports will double as more and more Chinese own vehicles. The nation criticized for exporting deflation in the form of cheap goods is having the opposite impact on the oil market and is credited with keeping the price of oil above $30 a barrel. The current Chinese administration, concerned about their lack of strategic reserves, is frantically scrambling to keep oil flowing into the country. Talks with Middle Eastern countries and Russia are geared toward obtaining a stable flow of oil to fuel the blossoming Chinese manufacturing sector. The fear from the U.S., besides the threat to the environment, is that the Chinese might trade weapons for oil with countries in the volatile Middle East. The flip side argument is that as the Chinese become more desperate for oil they also have a greater interest in Middle East peace. There are too many variables to predict most outcomes except one. The Chinese demand for oil will likely keep prices high.>> Talking it Over and Thinking it Through
>> Thinking About the Future The strategic importance of oil cannot be overstated. Any industrial country relies heavily on petroleum to fuel their economy. As China's economy grows their stake in the world's oil fields will become higher and their reaction to oil shocks will have to be considered. China will not allow their economy to crumble over lack of oil.
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