Unocal Uncertainty
Chinese oil firm trumps Chevron bid for Unocal:
I'm taking a lot of interest in the news that Chevron's bid for Unocal is being challenged by a competing bid from a Chinese company. If anything, it should show people how the diminishing supply and increased demand for oil is going to make everything really screwy. How screwy? Well, the normally free-market, non-regulatory Republicans want the President to step in and stop the proposed buy-out:
'I do not believe it is in the best interest of the United States to have Unocal owned by the Chinese national government,' said Rep. Richard Pombo, R- Tracy, in a prepared statement.
Unocal is going to be forced into a patriotic quandry. And if they do sell to China, so the Chinese can fuel their increasing appetite for automobiles, the US will get really squeezed. And I find this fascinating. A financial power struggle. But it's scary too, because of the potential for war (remember the Japanese in WWII).
Remember Mad Max? It presented a future world where people drive around to find oil for their cars so they can drive around and find more oil, so they can grease their mohawks and fuel their cars (and so it goes, ad infinitum). Why didn't they just stay where they were?
I'm taking a lot of interest in the news that Chevron's bid for Unocal is being challenged by a competing bid from a Chinese company. If anything, it should show people how the diminishing supply and increased demand for oil is going to make everything really screwy. How screwy? Well, the normally free-market, non-regulatory Republicans want the President to step in and stop the proposed buy-out:
'I do not believe it is in the best interest of the United States to have Unocal owned by the Chinese national government,' said Rep. Richard Pombo, R- Tracy, in a prepared statement.
Unocal is going to be forced into a patriotic quandry. And if they do sell to China, so the Chinese can fuel their increasing appetite for automobiles, the US will get really squeezed. And I find this fascinating. A financial power struggle. But it's scary too, because of the potential for war (remember the Japanese in WWII).
Remember Mad Max? It presented a future world where people drive around to find oil for their cars so they can drive around and find more oil, so they can grease their mohawks and fuel their cars (and so it goes, ad infinitum). Why didn't they just stay where they were?
posted by VeloDiablo at 12:15 PM
0 Comments:
Post a Comment
<< Home