G.’s Blog

Archive for May, 2009

The Dragon, the Elephant and Oil

Posted by G. on May 28, 2009

In the past six months, commodity prices worldwide crashed to multi-decade lows.

In the past six months,

1. Chinalco signed a deal with Australia’s Rio Tinto that will eventually double its stake in the world’s second-largest mining company.

2. China National Petroleum signed separate loan-for-oil agreements with Russia, Brazil, Kazakhstan and Venezuela, under which China would provide loan/aid, in exchange for long-term commitments to supply oil.

3. China National Petroleum signed an agreement with Iran’s National Iran Oil Company  to jointly develop a oil/natural gas field.

4. Commercial Bank of China took a stake in South Africa’s Standard Bank Group, Africa’s largest bank and a key to securing access to the Dark Continent’s vast oil/mineral riches.

India is a net importer of crude oil, and thats before the Nano. What have we done to secure our energy supplies during this sale of the century?

 

Update 1: The Rio deal has fallen through. Apparently, now that the markets have moved past the possibility of Armageddon and Rio can raise money in the bond/equity markets again, there is a sudden uptick in concepts like national interest…

Update 2: China Petroleum Corp has completed its purchase of Addax Petroleum, giving it reserves in Kurdistan and Western Africa.

Update 3: Here’s a comprehensive article on the subject from CNN.

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