» BBC NEWS | Middle East | US ready to seize Gulf oil in 1973: “The United States considered using force to seize oilfields in the Middle East during an oil embargo by Arab states in 1973, according to British government documents just made public. “
Archive for January, 2004
FT.com / World
another article on China’s increasing dependency on foreign oil
» FT.com / World: “China’s fast-growing economy has overtaken Japan to become the world’s second largest consumer of crude oil after the US, according to the International Energy Agency (IEA) and the Chinese government.”
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The latest figures underline China’s thirst for natural resources to fuel its industrial revolution. Yesterday, China reported economic growth of 9.9 per cent for the fourth quarter of 2003, taking full year growth to 9.1 per cent.
They also confirm that the economy – to the dismay of the ruling Communist party – is becoming ever more dependent on energy imports, mainly from the Middle East.
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Chinese customs figures show the country imported a record 91m tonnes of crude oil last year, up 31 per cent from 2002. It also exports oil and refined products, but by 2030 China’s net oil imports are expected to reach 10m b/d and meet more than 80 per cent of its demand, compared with 35 per cent in 2000. Just over a decade ago, China was a net exporter of oil.
Chinese demand has boosted oil tanker rates to near record levels on the Middle East to China route. Rates have tripled since October, and now exceed tanker rates from the Middle East to the US by 20 per cent.
US drilled — buyouts of Canadian oil and gas comp…
US drilled — buyouts of Canadian oil and gas companies continues
Commentary by John Myers – an analyst on oil, gas and gold. By the way, he’s located in Calgary, Canada’s oily hotspot.
» 321gold.com: Meanwhile, America’s rotary rig count, which once totaled more than 5,000 active in the early 1980s, stands just above 700 today. Even with crude oil prices above $28 a barrel, American oil companies have slashed domestic exploration budgets because they understand one fact – America is drilled out.
Since 2000, U.S. oil companies have replenished their reserves by acquiring other oil companies, many of which are headquartered in Canada. These Canadian companies have significant reserves and will continue to provide an expedient solution to America’s brewing energy crisis.
In short, I believe U.S. buyouts of Canadian oil and gas companies will continue. And we’re looking into more takeover candidates for OI recommendations.
But Canada is not a panacea that will cure America’s oil crisis. This was supported by some somber predictions at a November energy symposium in Ottawa, Canada. According to several of the industry’s top experts, Canadian and worldwide production of oil and natural gas will peak sometime before 2020.
The only solution, said symposium speakers, will be higher energy prices from the gas pump right on through to household electricity.
Asia Times Online – News from greater China; Hong Kong and Taiwan
China: Hungry for power (and oil)
excellent background article on China’s “struggle for power”…or rather “energy”…
» Asia Times Online – News from greater China; Hong Kong and Taiwan: “HONG KONG – China’s energy crisis caused by shortages of coal and hydroelectric power is compounded by a worsening oil shortfall. Though the world’s fifth-largest oil producer, China has fallen from being a net oil importer in 1993 to becoming the world’s fastest-growing importer. Its estimated exploitable oil reserves would last about a week.
The energy crisis has sounded a national alarm, requiring China’s leadership to confront the power famine head-on, review its energy policies and develop a long-term, sustainable energy policy. “
Oilcrash: Home Page
Oil crash within 5 years?
There are so many opinions on the peaking of oil, here’s an especially worst-case one. Nevertheless, check out this website.
» Oilcrash: Home Page: “This website reveals that within five years:
Oil extraction from wells will be physically unable to meet global demand (the evidence is from the oil industry itself).
Alternative energy sources like nuclear and natural gas will fall far short of compensating for expected shortages of oil. There is simply not enough time to convert over to them.
Massive disruptions to transportation and the economy are expected from about 2005-2010 onward as the global decline of petroleum begins. “
Meanwhile, LA Times also reports on the shrinking of oil reserves (registration needed for full article):
» The world’s oil companies were already double-checking their books
before Royal Dutch/Shell Group sent the industry into a tizzy this
month by reducing the stated amounts of its proven reserves by almost 4 billion barrels of oil and natural gas. That’s 20% of its total.
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Thanks in part to the Shell hullabaloo, regulators are stepping up
their scrutiny of other companies’ oil reserves — and that may lead
to more downward revisions. Because the production schedules of oil
firms are directly tied to their reserves, these changes are sure to
exert an upward pressure on market prices.
Simply put, every change in reserves recalibrates the supply side of
the supply-demand equation. And that’s an unpleasant prospect in a
world already burdened by oil that goes for more than $30 a barrel
and natural gas that is fetching more than $6 per thousand cubic feet.
CBC News: Maritimes may need to boost power supply
» CBC News: Maritimes may need to boost power supply: “HALIFAX – Unseasonably cold weather has power companies on the East Coast talking about the need to generate more electricity down the road. “
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People are being encouraged to take simple steps to conserve energy, such as turning down the thermostat, improving a business or home’s insulation, and wearing a sweater indoors.
But if the demand for electricity continues to rise, especially during cold snaps, new power plants will probably have to be built, analysts say.
