And some people think the Chinese and Russians are not serious about leaving teh US dollar in the dust. Now the two great nations are selling and buying oil in their own currencies. Soon miliary technology will start being exchanged and all hell will break loose...
Russia – China oil pipeline opensby Fever on January 3, 2011 · 1 Comment
After extensive testing of oil quality by the Chinese since the initial flow began on Nov 2, 2010 the new East Siberia-Pacific pipeline has begun to provide clean crude oil to China’s expanding manufacturing efforts – “First 42,000 tonnes of oil pumped along Russia-China pipeline“. Expected to provide up to 15 million metric tonnes of oil a year, I reported the initial deal was arranged back in February of 2009 – “Russia, China sign $25 billion energy deal, China secures 20-year oil supplies“.
East Siberian Pipeline
I find it interesting however; the stated volume varies depending on the source. Russia claims 15 million tonnes a year, while China claims 30 million tonnes? Ah never mind, it is a sure sign of the very close ties being formed between the largest producer of oil in the world, and the largest consumer.
I note that while Canada has the second largest oil reserves in the world, our current production technologies can’t retrieve it fast enough. A lot will change when arctic oil exploration really takes off with an estimated potential reserve of anywhere from 25 to 75 billion barrels of oil under territory controlled by the Nunavut Territory.
Official map of Nanavut
If it is closer to the higher number, this would make Canada the largest oil reserves discovered so far. Interesting times ahead? I wouldn’t be surprised to hear of a trans-arctic pipeline deal with Russia, through Siberia and on to China if the Arctic drilling really takes off.
http://blog.feveriam.com/2011/01/russia-china-oil-pipeline-opens/
