Brittany Sturdivant
September 26, 2008
Energy and Oil/10:00 am
Venezuela has teamed up with China with an oil deal that will boost the shipments in China to 25%. Venezuela’s President Hugo Chavez was in China for three days to set the agreement with China. With the agreement the oil exports to China will increase to 1 million bpd by 2012. This deal is very beneficial to China because they are dealing with a country like Venezuela which is the fifth largest oil exporter in the world and hopefully Venezuela will become the top exporter to China. The agreements signed between the two countries include building a refinery in South America’s largest oil area and maybe even building a couple more refineries throughout the country. The Venezuelan people have much sympathy to China after the disaster that happened to the country in May and I think that’s probably one of the reasons why Venezuela wants to help China because they know China needs all the help they can receive right now. The United States receives a large portion of oil from Venezuela and I think its great that Venezuela is keeping the deal with both countries since they both need oil. I think it’s great that Venezuela is teaming up with China especially since China’s economy is growing so rapidly and it will help with their much needed energy demand. Also, China’s oil demands are increasing rapidly and since they don’t have enough oil, the deal with Venezuela gives China almost a 400,000 increase in the barrels of oil they receive.
http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=4d0baecf-f6b0-4404-8ec2-ea519b4f9e8e
2 comments:
I agree with the poster. China does need the help, and that is great that Venezuela is going to step up and help. I with we could get some help with oil here.
It's a risky dance, I'll say. China is still under scrutiny for its violations, and Venezuela's well on the list of being uber-uncool in the U.S. However, the enemy of my enemy is my friend, and they do love to play hardball.
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