Return to Ranken's
Useful Information
This image circulated on the
Internet some time ago. It is a composite of nighttime images.
Those are streetlights shining below. Under each are hundreds of light
bulbs, television sets,
microwave ovens, air conditioners and cars. Notice how much of China is still
undeveloped.
We are now in a Global Economy and must compete for energy supplies. It
will be challenging.
This from an
industry newsletter. This author's predictions have been fairly accurate the
last few years:
Oil
prices are about to receive another level of support from the Chinese. Plans
are now in place for the Chinese to begin filling, as of September 1, their
own Strategic Petroleum Reserve which would be similar to that of the U.S.,
but only 100 million barrels. Given that there is no global excess capacity of
crude oil supplies, what do you think will happen to oil prices as the Chinese
begin buying oil for storage? Unless they are willing to fill their reserve
exclusively with Saudi heavy crude, oil prices will continue moving higher
with this added demand on oil supplies. I mentioned many times in the past
that the Chinese have the financial capacity above all others to be the
marginal buyer of oil and pay whatever it takes for an incremental barrel of
oil and that they will be setting the global price. I think we are about to
witness what it means to hold such power over a global commodity as everyone
else will either have to meet or beat the price established by this energy
hungry country.- Danny Bowers [mailto:Dbowers3@houston.rr.com]
Link to Image Source: NASA
image August 2002
Return to Ranken's
Useful Information
