Essay About Worlds Oil Production And Supremacy

Rise of Fuel Consuming Dragon
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US is the worlds largest energy consumer, it absorbs ¼ of worlds oil production, since
the end of the Cold War its status as the only superpower has allowed it to consolidate its oil
supremacy, but this supremacy is increasingly disputed by China.
China has intensified its efforts all over the world in search of oil since the last decade, its
high handed manner breaks the conventional wisdom of doing business, unlike the rudamentary
knowledge that underpins a lot of the western aspirations, its striking conformation towards
negative forces acting against its rise to become an Empire.
Making a lot of demand changes, shift from rice to other grains is driving up the prices of
those commodities. In terms of oil, people are making a shift from bikes and mass transportation to
their own individual cars. As long as the state continues to keep prices low its going to encourage
growth in that area. Subsidies have a huge impact on the cost model of factories, Chinese factories
tend to run on a razer thin margin. Subsidies are offered to the Chinese oil companies to keep
inflation tamed. Money flowing in is a driving force. At an individual level citizens are gaining
wealth due to this booming economy.
Chinas car sales and unquenchable thirst for oil has created problems for many western
countries which are heavily dependent on cheap oil from Latin America and the Middle East.
Chinese oil companies are increasingly bidding higher prices for oil; its strong foot forward has
threatened many western oil companies , an example of its might coming from the $ 50 billion offer
for a stake in Nigerias reserves , the oil majors have come under increasing pressure. IT is believed
to overtake US as the largest consumer of oil in the world by 2015. Western oil companies such as
Shell and Chevron have no choice but to allow the government to renegotiate contracts and retake
oil fields. That China is now coming to the western hemisphere and bidding for the same oil that the
US is so reliant on, caused immense consternation, especially in the Congress.
Energy, politics and economics