UNITED STATES OIL & energy RISKS

 China wants oil and gas control.  In Oct 2020, prior to pipeline contracts, China signed an Agreement with Iran allowing them (China) to station troops, advisors, engineers, technicians and airplanes in Iran for the next 25-years.   China and Iran have thrown huge sums of money into the coffers of friends and foes alike to corrupt and influence both nations and terrorist organizations.  

By committing to pour billions of dollars into infrastructure development over the years, China appears to have stolen a march over the U.S. and emerged as Pakistan’s partner.

Chinese President Xi Jinping unveiled his country’s biggest overseas investment — the ambitious 3,000 km—long China—Pakistan Economic Corridor (CPEC).

The 1,200km undersea proposed pipeline is designed to deliver more than 55 billion cubic meters of natural gas from Russia to Germany.

The Russia-to-Germany gas pipeline, known as Nord Stream 2, would bring natural gas from Russia to Germany and run under the Baltic Sea.

China will control the refining and distribution of the world’s crude as evidenced by its excess mega refining capacity and construction of new state-of-the-art refineries. It will also control the high-end price of crude oil as evidenced by what it is willing to pay for crude to refine into gasoline, diesel and aviation fuel (JP-8). 

US shale production is not profitable and losses exceed 410 billion dollars. 

The bottom-line objective of Russia, Iran and Chinese agreements is to get Middle East countries to send their crude to China or India for refinement and follow-on distribution as finished products (gasoline, diesel and JP-8 aviation fuel).  In ten 10 years the US might buy gasoline, diesel, JP-8 from refineries in China and India and our natural gas in the form of LNG from Russia.  Hydrogen is a solution.