Sunday, June 26, 2005


From reserve field.

An interesting thing is going on today. Both America and China are buying oil that is pumped out of other countries and are reinjecting this oil back into the ground home! This is what "oil reserves" are all about. Redoing geology.

China will start filling its first strategic petroleum reserve this year, China Central Television (CCTV) said Thursday amid efforts to ensure energy supplies for the country's booming economy.

Plans call for China to build groups of storage tanks at four locations.

The first 16-tank facility to be filled is in the city of Zhenhai in the eastern province of Zhejiang, south of Shanghai, CCTV said, citing Wang Mingji, vice chairman of state-owned China Petroleum & Chemical Corp.

The reserve is meant to cushion China against possible interruptions of foreign supplies. Previous reports said Beijing plans to stockpile up to 100 million barrels of petroleum, or the equivalent of almost a month's national consumption.
Redistribution of oil resources is picking up despite the high price of oil, indeed, this is the chief cause of high oil prices. America's oil barons are using taxpayer money to buy oil and store it and then they pretend there isn't enough oil and the high prices is not their fault.

Every news story I read in America blubbers about how the high price of fuel has zero effect on the economy which is all lies. It is having a giant effect: it is driving everyone into debt! I would call that very bad news, indeed. People on fixed incomes are suffering terribly now.

Anyway, the race to get as much oil as possible is on. All nations without oil reserves will be creating them...if they can. This leaves out much of Europe except for the few places with deep salt mines which is the ideal storage place aside from limestone caverns.

Congress is getting scared. The confident statements of the Chinese that Americans won't oppose them taking over Unocal Oil is reverberating in DC. Time for some hot air! From the Washington Post:
From China's perspective, it makes perfect sense: Buy an American oil company to help secure enough energy to fuel its rapidly growing economy. The country is the world's second-largest consumer of oil after the United States. Its old state-subsidized factories are energy-inefficient. With incomes rising, people are dumping bicycles for cars. Its industrial regions are suffering shortages of the fuel needed to generate power.

But the timing was unfortunate here in Washington when state-owned CNOOC Ltd., China's third-largest oil company, bid $18.5 billion to buy Unocal Corp. Both Republican and Democratic members of Congress were already considering a variety of trade measures aimed at punishing China. Some U.S. lawmakers seek to push back the rising tide of Chinese exports to the United States. Some want the Chinese government to crack down on piracy of intellectual property and to buy more goods from overseas.
During the eighties, the Japanese didn't need to buy oil companies, they got their oil from Alaska! No need to secure that when they owned Reagan, our freckless but popular President who was the perfect front man. It cost them a mere $2.5 million dollars, a bargain!

The Chinese own the Bushes. They give money to the extensive but hidden Bush clan which are the biggest group of spongers aside from the Saudi Royals, on earth. So Congress will fume and fulimate and nothing will come of it since there is no investigation of the many ties binding the Bushes to the Chinese communist party.
Add to that the fact that CNOOC is controlled by China's Communist Party government, and the bid quickly inflamed U.S. political fears of China's growing economic strength and military power. Analysts worried about the potential effect on oil prices if China decided to hoard supplies for its own use. House and Senate members immediately demanded that the Bush administration review China's Unocal offer under the Defense Protection Act to determine the potential economic and security risks. Treasury officials indicated they would do so if Unocal accepts CNOOC's offer. Unocal already had tentatively agreed to a $16.5 billion bid from Chevron Corp. in April.

Lawmakers expressed similar concerns decades ago when Japan was buying up American companies, skyscrapers and golfing resorts. But the fears proved unfounded. No one on Capitol Hill would trade today's strong U.S. economy for Japan's more anemic one.
The reporter for the WP is stupid. Japan's economy is roaring along! Profits pour in. Their influence over America grows apace. They are building auto manufacturing plants all over the planet including in America. This isn't "anemic" at all! The Japanese workers are suffering! They aren't getting jobs! Toyota is building factories in cheap America! Our economy is exceedingly weak if we take away all this manufacturing done by our Japanese overlords. But then, we can't expect the running dog lackeys of America to understand what is happening, heh!

Meanwhile, the Chinese overlords talk about conservation: From Xinhuanet news:
Zhang Xiaoqiang, speaking at an International Conference in Beijing, says that China will continue to import equipment and technology with high efficiency of energy use and low emission of pollutants.

The country will also expand on foreign countries' expertise, encouraging foreign investment in China's development of new and renewable energy sources.

The official notes China will strictly limit relocations of industries with high energy consumption and heavy pollution from abroad, while enhancing cooperation with the United Nations, the World Bank and other countries in energy conservation.
I happen to know Zhang. He knows America really well, trust me on that. His warning should be taken seriously. He understood that China would be the dumping ground for the world as they climb the capitalist ladder. But now they are at the point where they can turn the tables.

Time is running fast against us. We exported our pollution and our inflation but the downside is, we lost control of everything and this will bite us back hard if not fatally.

From Xinhuanet news:
Zeng said building a resources-efficient society is a major step that China takes to remold its development pattern, adding that relevant measures will be written into the 11th Five-Year Plan (2006-2010), the governmental guidelines for economic and social development for the interim period.

Zeng said in the first two decades of this century, China will pursue a route of new-style industrialization that features lower consumption of resources and minimized pollution of the environment.

The Chinese government has just issued two decrees on the current priorities of building a resources-efficient society and on accelerating the development of a resources-recycling economy, Zeng said.

Though China had managed to improve resources efficiency, measured by energy consumption for every 10,000 yuan worth of gross domestic product (GDP), much faster than the world average in the last 20 years of last century, Zeng said, China is still faced with a shortage of resources. Since it has a large base of population (1.3 billion), the average amount of resources that every Chinese citizen owns is much less than the global level, he added.
You have to read the boilerplate speeches. This week, our craven Supreme Court ruled that polluting our air is OK and right now, breathing at my personal home is rather hard because the air is so foul even here, way out in the mountains in the countryside, it is like downtown LA! Our entire country is LA these days. People are literally chocking to death thanks to this bad air. But our goofy ruler, far from talking about cleaning it up, is trumpeting the victory over reality today as he succeeded in befouling our air and water legally!

Hope I am breathing tomorrow so I can continue to detail all this stuff on my blog!

Oh, and lest I forget, today, China said again, they will change their currency when they want and not one minute sooner. Poke in the eye again, America. By the way, I know what they want: Bretton Woods III. They will sit down with us and dictate terms.