China, oil, and our future...

[trik396]

This is from an investment advisor I utilize. The gentlemen who wrote it is name Matt Badiali who is a geologist and oil investment guru...... interesting information.


Wealthy, hip Chinese urbanites want to own... Hummers. Beijing Auto rolled out its own version, called the Trojan. And SUV imports from traditional luxury carmakers BMW, Porsche, Lexus, and Cadillac hit record levels in 2007.
Chinese demand for SUVs began to show serious momentum in 2003 – sales doubled to 200,000 that year. The industry has enjoyed double-digit growth every year since, with 370,000 of the behemoths sold in 2007.
The iconic image of America for the last decade has been the big, glittery SUV. Now wealthy Chinese people want to live like Westerners.
Demand for big cars fuels demand for oil – China's consumption grows about 8% per year. In addition, the government subsidizes gasoline, so prices are nearly 40% lower than here in the U.S.
You see, everybody wants to blame "greedy" oil companies for high gas prices... but the real reason is our TV shows. All that TV we exported for the past 10 years showed the world how we live and, more importantly, what we drive.
So don't blame ExxonMobil for high oil prices, blame MTV.

Legendary oilman and billionaire T. Boone Pickens called our imports of foreign oil "the biggest transfer of wealth in the history of mankind" – from the U.S. to oil-exporting nations.
In an interview with Oil and Gas Investor, Pickens said we pay about $700 billion per year for imported oil, a figure he predicts will rise to $10 trillion within the next 10 years. America is increasingly at the mercy of oil-producing countries.
Pickens would like to see this as a central issue in the upcoming presidential campaign. But while the problem may be debated, it will probably sound like two fifth graders discussing the theory of relativity. Neither candidate has a solid grasp of the energy issue.
Democrat Barack Obama supports punitive "windfall profit taxes" on energy companies, which would suppress exploration and supply. Republican John McCain wants to suspend gasoline taxes. While that might provide a brief respite, it would only ramp up demand.
While neither candidate has yet picked up on this theme (and don't hold your breath), T. Boone's ideas and his half-a-century of experience in the oil industry would be a welcome addition of knowledge and experience...

[KEVWYO]

China sounds like it might be setting itself up for a bubble down the road. Perhaps T. Boone should get the nod for Energy Secretary. Then again, that's an oil man being put in charge of his own purse strings.

[FLSTFI Dave]

Good post Tric396