Tuesday, March 21, 2006

The Big Squeeze: Is China Elbowing U.S. out of Russian oil?

Will the U.S. be the odd man out when it comes to Russian Oil?

Russian President Vladimir Putin today inked a deal with China's Hu Jintao to supply oil to China's exploding economy. The pair also agreed to build a new pipeline branch to move oil from Siberia directly to China's thirsty mouth.

A deal between Russia and China simply continues a thawing of relations. With so much in common geographically, increasing trade between Russia and China makes sense. Russia has clearly been searching for a way to improve their stature and influence in the world. What better way than to cozy up with China, conencting Russian energy with China's economy. I wouldn't be surprised down the road to see a Russian/China trading block to counter the economic and political influence of the U.S. and E.U.

Click here to read more about what China's growing energy consumption means to the U.S.

The signs are everywhere: the U.S. needs to quickly move away from an oil based economy, and embrace renewable sources to sustain its growth.


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