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Monday, November 13, 2006

While America Fiddles, Russia and China Build Empires of Oil

Here's the news from the BBC that was lost in the weekend shuffle ...

Russia's state-run oil giant Rosneft is to build hundreds of petrol stations in China as part of a plan to double its business in Asia.


Russia is seeking to diversify its energy exports away from Europe and is already building two gas pipelines to China.

Russia is planning to increase the amount of oil it sells to China in 2007 by 53%! Russia's real oil wealth is in natural gas, and that's what the two pipelines are about. China is also moving to invest heavily in Russia's oil and gas companies. China National Petroleum Corp (CNPC) and state-owned Russian company OAO Rosneft recently formed a joint venture, Vostok Energy, to carry out oil exploration in Russia.

Bilateral trade between Russia and China will hit US$60-80 billion by 2010, and China will invest US$12 billion in Russia by 2020, starting with $1 billion immediately.

And let's not forget India, which is seeking its own oil deals with Russia.
New Delhi is seeking a slice of the Sakhalin III oil and gas project. It also has promised to buy 50 million tons of crude oil annually from Russia, is offering incentives to Russian companies to build refineries in India and supports Moscow's bid to participate in the proposed US$7.4 billion Iran-Pakistan-India (IPI) gas pipeline.

Meanwhile, the US is fixated with celebrity marriages, politicians are positioning for the 2008 elections, and our money, manpower and resources are being sucked into the vortex that is the ongoing fiasco of the war in Iraq. Remember how "liberated" Iraq was supposed to flood the US with cheap oil. How is that working out?
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