A VISIT to China next week by Saudi King Abdullah bin Abdul-Aziz is expected to give impetus to a deal to establish a multi-million-ton oil reserve base in south China, the Beijing Morning Post reported today.
At the end of 2002, Haikou Gaofeng Refinery signed a memorandum of cooperation with Saudi Arabia, which included an oil reserve project and a 6-million-ton refining project.
But Saudi Arabia wanted a 65 percent stake in the project, the Post said, citing an inside source.
In negotiations last year, Saudi Arabia agreed to reduce its holding to 51 percent, the source was quoted as saying.
Saudi Arabia’s plan to set up an oil reserve base in south China is expected to boost its sales in Southeast and Northeast Asia.
You know, the US may have to consider getting serious about alternative energy systems — if vendors of oil in the Middle East move towards a more rational customer base. If the Saudis increase their sales to clients who are just down the street, have petrodollars to spare and aren’t likely to invade for “regime change” — where does that leave the Oil Patch Boys and their Washington bubbas?
“where does that leave the Oil Patch Boys and their Washington bubbas? ”
It leaves them RICH! Listen I live in Northwest Oklahoma $50 per barrel oil make my friends RICH because we produce oil and gas!
We need to produce our own oil and gas. When we do that we cut the petrodollars out from underneath the Saudis and we make our own countryment RICH!
Understanding the economics of this is not hard
With the median household income in, say, Enid, being about $32K/year, I’d say your crowing might get you some nasty remarks from neighbors down the road, John. At least, from those who don’t own oil or gas wells.
In the late 70s Brazil, which at the time was some 85% dependent on foreign oil, began switching over to ethanol (based on sugar cane essentially). Now the Brazilian economy is about 80% ethanol and 20% foreign oil….and the cost of the ethanol per gal is much cheaper than the gasoline.
I guess I’d rather make our Mid-West Farmer’s Daughters feel alright ‘cuz they’re daddies are richer than sin rather than bubba’s and bubba-Daddy’s buddies in the Middle East. Sugar beets here in CA, corn in other places…but let a million ethanol plants bloom..and let Middle Eastern politics go to the hell they deserve to be in.
Michael — your point is worthwhile. I try to hold back on the wealth of alternative energy [and sensible energy] programs being developed in Asia. I find it a delight to witness nations climbing out of a feudal past and determined NOT to repeat all the mistakes of the “advanced” West — doesn’t mean I can count on all our readers sharing that conviction. John doesn’t want me to get too boring or specialized.
Anyway, the Brazilian model is being very much taken to heart in China, as well. And Sweden and nations in nothern Europe with a diminishing market for sugar from beets — perfectly capable of fermenting root crops > ethanol.
Cynic though I am, I have a tough time understanding why our Midwestern farmers haven’t gotten up off their rusty dustys to push into longterm sustainable energy-producing crops. Maybe, they just can’t see beyond this year’s soybean subsidy?
It isn’t a matter of whether the farmers can see beyond the subsidy, although that does have a lot to do with it.
The market isn’t there (yet) for alternative fuels. Sure, there’s potential, but have you tried to feed your family on potential?
We have no industrial incentive to produce alternative fuels. Oilmen in TX and OK can turn the spigot on or off as the supply/demand waxes and wanes. You can’t do that with a crop that’s already planted or seed you’ve already purchased.
Automobile manufacturers have no incentive to build a car that can get 10-15 mpg on ethanol when they can build a car that gets 20-30 mpg on gasoline without having to reengineer the vehicle. (Yes, i’m talking about cars. I know trucks get less than 20-30.) And, American consumers don’t want to buy diesel engined vehicles except for the heavy-duty pick-up that gets less than the 10-15 mpg of an ethanol vehicle.
Can it be done? Absolutely! Will it need a combination of government subsidies and industry incentives? Probably.
What it really will take is for consumers to change their mindsets about what is a viable fuel. With all the grain we can grow, we could easily produce enough biodiesel to support our oil-based economy. But, we need to convince communities that we really do need biodiesel manufacturing facilities in their neighborhoods. We need to convince industry that they will get a return on their investment. We need to convince lawmakers that this would be better for the economy (and the environment) in the long term, and we need to convince consumers that diesel engines are no more difficult to operate than gasoline engines.
garym — true. I’m bemused because I live in a small community where, as a matter of fact, you can purchase biodiesel. And my father-in-law on his travels with his 5th-wheeler is considering a switch to diesel/biodiesel for all the right reasons — including availability. Once he started to watch for BioD, he began finding it.
I don’t think you need to convince folks ready to produce and distribute. I know folks who’ve tried to get that business rolling for decades. People forget that Dr. Diesel ran his original critter with peanut oil. The serious hurdle is the flock of tame goats in Congress and most statehouses. The profits living inside the Oil Patch banks are big enough to keep lobbyists/politicians rolling in golf trips for another eon or two. I guess we’re looking at yet another issue that requires throwing the bums out.
biodeisel alternative – http://www.switch2hydrogen.com/
kits are not availible… yet…
Here’s what’s going to happen. A WMD attack will provide the pre-text for an invasion of Iran by NATO forces. Onerous conditions will be placed to prevent the spread of WMD througout the region resulting in an Arab war versus the West that will result in eventual western control of the region no matter what the costs. The side-effect will be western control of middle-east oil reserves and the taming of any eventual threat from China. Simple.
You read it here first!
Will
Alternative feul is so unAmerican. America is about Hummers, muscle cars etc. It’s about cowboy-hat oil tycoons making a gazillion bucks. To go against fossil feul is to go against America – land of the free, home of the brave. What other country has a tag line.