China Increasing Supply, To Meet Their Growing Demand

Yet America is Reducing it's Supply AGAINST it's Demand.

Hey folks,

Happy Tuesday to you. As we check in at the Energy Front, we see what we were talking about last week is now being reported in the Mainstream Media. On Tuesday, last week, I told you about this. Backdoor Moratorium On Oil and Natural Gas Shale Projects

Well, what about Coal and Shale? They are not effected right? Wrong. This Administration, so beholden to the "Green Energy" Special Interests, and the Environuts, they will stand in the way of this as well. Why, because they are quick to dream, yet slow to think. Some of these Kooks actually BELIEVE that we can get off of Oil and Natural Gas overnight and become "Green" tomorrow. But we have talked about that as well. It simply is not possible, there is nothing to switch to. However, this is not stopping them from imagining, falsely, that if they reduce American produced Oil and Natural Gas Energy, increasing the cost, it will motivate others to come up with a viable solution quicker.

I told you about China, stepping in and buying up a third of the Shale Project in Texas from Chesapeake Energy. Why? Because Chesapeake Energy found it cost preventive, to jump through all the Hoops that Obama and Crew have put into place, just to get permission to START. Due to regulations, fines, and taxes, this Administration has accomplished what it wants to accomplish. Moratorium De Facto Still In Place.

So why is China doing this? Is it because they are greedy? Because they hate the planet? Is it because they are against the "Green Dream?" No. According to Reuters - China overtakes U.S. as biggest energy consumer: IEA

(Reuters) - China has become the world's largest energy user, having overtaken the United States, the head of the International Energy Agency said on Tuesday.

"China is now the largest energy consumer by our definition," the executive director of the Paris-based IEA, Nobuo Tanaka, told an industry conference.

"Probably half of the oil demand increase comes from China. Nobody knows when it (will) slow down."

The IEA advises 28 developed countries. China is not a part of the IEA but the agency monitors the country as its oil demand can have a significant impact on prices.

This is really not that hard to understand Their Energy Demands increase, they are looking to increase their Supply. They need to to keep Energy affordable for all of THEIR people. Since WE WON'T, they, and others, WILL. Then we will have to rely more on them, for our own product. I LOVE this piece from Investors Business Daily - China's Will To Drill

Energy Policy: The administration lifts the Gulf drilling moratorium in time for the election, but it's not as good as it sounds. Meanwhile, China buys up Texas oil land to develop the energy reserves we won't.

The lifting of the Gulf drilling ban imposed after the explosion of British Petroleum's Macondo well came as welcome news. But like anything this administration does, one must read the fine print.

Interior Secretary Ken Salazar announced that the ban was being lifted before its Nov. 30 target because of the "the higher standards we have set" for drillers applying for new permits.

However, the placement of further drilling restrictions by an administration openly hostile to the use of fossil fuels and domestic energy development does not bode well.

Told you this was PURELY Political, and does NOTHING. Senator David Vitter, R-La., echoed me.

"I guess this is movement in the right direction," added Sen. David Vitter, R-La., "but it's painfully slow. It's clear that President Obama is going to preside over a continuing de facto moratorium for months or years, with new drilling held back to a fraction of previous levels."

Yup. It doesn't say who wrote this, but the person sounds just like ME. {Smile} Like this.

While we dawdle, state-owned Chinese energy giant CNOOC is buying a multibillion-dollar stake in 600,000 acres of South Texas oil and gas fields. CNOOC announced Monday that it would pay up to $2.2 billion for a one-third stake in Chesapeake Energy assets.

They wrap it up with this.

From the Chinese perspective, this is a golden opportunity for them," said Ken Medlock, a fellow at Houston's Baker Institute and adjunct professor in Rice University's economics department. "They have identified shale resources in China, but they don't have the knowledge or technical expertise to go after those resources."

So we'll provide them with the technology to develop their oil resources at the same time we restrict our own exploration and development.

So they have an INCREASE in Demand, THEY look for ways to INCREASE their Supply. We have an Administration who is purposefully DECREASING Supply, in the HOPES that the INCREASE in Demand will somehow INCREASE Alternative Energy Supply. Meanwhile in the REAL World, China, and others to follow, profit from American Resources, at the expense of Americans. Just another reason we need to bring SANITY back to Government.
Peter

Sources:
OPNTalk - Backdoor Moratorium On Oil and Natural Gas Shale Projects
OPNTalk - Moratorium De Facto Still In Place.

Reuters - China overtakes U.S. as biggest energy consumer: IEA

Investors Business Daily - China's Will To Drill