Will China's demand for oil keep the patch going longer?

China has been buying a hell of a lot of oil out of Africa, and those wells could theoretically deliver, if they weren't in AFRICA. The whole continent is always being plunged into some new disaster, or some new political turmoil- it's an incredibly unstable place to be buying your primary source of energy from, when it comes to a growing nation like China.

Fact is, the Chinese are diversifying the range of nations and continents they buy their oil from. Yes, the US is in that category, for now. What's probably going to make those oil fields profitable, will be the rising cost of crude, due to the already rising demand, most of which (demand wise) is coming from eastern Asia.

In short, China buying our oil, probably not gonna keep the wells-a-pumpin.
China buying more foreign oil, probably gonna make the need for domestic sources of energy, even more obvious.

Hell, let China deal with having to secure their own foreign sources of energy, and hopefully it wont be our problem too much longer.

 

China is actually buying into a few oil companies, not so much for the oil, but for the technology. I'm sure they have their own stash at home but don't have the expertise to extract it, that's one of the reasons they're buying into companies over in the US. They just don't have the technical skills yet.

 

I'd worry more about the U.S. dollar getting strong again now that the Fed and Treasury are winding down the U.S. dollar dilution scheme they have been doing since 2006.

 

Yes they're winding it down cos it's not working anymore so we had better get ready for the shinola to hit the fan. You start printing like that inflation is bound to follow, but the funny thing is that every country out there is doing the same thing.

 

China is stuck with billions of US dollars, if Ten Pen wants to import something from America, he has china convert his yen to dollars and then he pays in US dollars. If Hop Ving wants to buy something from Egypt, he goes to China government and pays for it in US dollars, even though it has nothing to do with the US.
yes, the US dollar is the worlds currency. Thru trade, China ends up with a surplus of our dollars, which are backed solely by really nothing. So China has to get rid of the dollars, it buys mines and factories everywhere, to get rid of the US DOllar, thus changing it into something of value.
China has amassed a lot of gold and will show it to the world soon, when the US loses the world currency status, we will not be able to print money or run deficits without having massive inflation. We'll most likely turn to animals, it'll be bad.





You'll lose your job for sure. < the truth>


But it will be better as the strong ones will weed out all the leaches. Unless the law of finance doesn't apply to us, like it has to every other world currency country ever, remember Rome?

 

I think the most important thing to remember is, if there is oil to be had they are going to keep drilling and pumping till it's all gone.

Adam