The largest oil exporter in the Middle East has teamed up with the second largest consumer of oil in the world (China) to build a gigantic new oil refinery and the mainstream media in the United States has barely even noticed it. This mammoth new refinery is scheduled to be fully operational in the Red Sea port city of Yanbu by 2014. Over the past several years, China has sought to aggressively expand trade with Saudi Arabia, and China now actually imports more oil from Saudi Arabia than the United States does. In February, China imported 1.39 million barrels of oil per day from Saudi Arabia. That was 39 percent higher than last February. So why is this important? Well, back in 1973 the United States and Saudi Arabia agreed that all oil sold by Saudi Arabia would be denominated in U.S. dollars. This petrodollar system was adopted by almost the entire world and it has had great benefits for the U.S. economy. But if China becomes Saudi Arabia’s most important trading partner, then why should Saudi Arabia continue to only sell oil in U.S. dollars? And if the petrodollar system collapses, what is that going to mean for the U.S. economy?
Tag Archive: oil
With the national average of gas prices hitting $3.65 a gallon, nearing $6 in some parts of the country, and poised to head even higher, America’s families are wondering when the bleeding at the pump will stop. But for Secretary of Energy Stephen Chu, those steep prices aren’t even a concern. In fact, he says his goal is not to get the price of gasoline to go down.
Chu delivered those stunning remarks in testimony before Congress yesterday. When Rep. Alan Nunnelee (R-Miss.) asked Chu whether it’s his “overall goal to get our price” of gasoline lower, Chu said, “No, the
Obama’s giveaway: Oil-rich islands to Russia
Part of Obama’s apparent war against U.S. energy independence includes a foreign-aid program that directly threatens my state’s sovereign territory. Obama’s State Department is giving away seven strategic, resource-laden Alaskan islands to the Russians. Yes, to the Putin regime in the Kremlin.
- Obama praises Russia’s expected joining of WTO (seattletimes.nwsource.com)
- Anti-Americanism key to Putin’s campaign (sfgate.com)
- Obama meets Georgia leader amid Russia dispute (sfgate.com)
WASHINGTON, April 6 (UPI) — Russia has launched a long-term program for the next 12 years to boost its security forces and military presence in the resource-rich Arctic Ocean.
The Kremlin has plans to slowly assemble a collection of military and security units in the arctic region, but it has no intention of militarizing the arctic, a spokesman for the Russian Security Council told RIA Novosti March 27.
The official, speaking on condition of anonymity, told RIA Novosti the Russian Security Council had published an official policy paper on its Web site titled “The fundamentals of Russian state policy in the Arctic up to 2020 and beyond.”