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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (5210)	7/26/2005 7:30:40 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

US worried about China and India energy investments WASHINGTON: A senior State Department official expressed concern on Tuesday over the willingness of China and India to make energy deals with countries that are “pursuing policies that are harmful to global stability.” In testimony prepared for delivery to the Senate Foreign Relations Committee, Undersecretary of State Anthony Wayne alluded to the energy investments that the two Asian giants are making in Iran and Sudan. He made specific reference to the discussions Indian and Pakistani officials are holding with Iranian officials on the technical, financial and legal aspects of building a $4 billion (euro3.34 billion) pipeline that would bring Iranian natural gas to Pakistan and India. Wayne also noted that India, and to a much larger extent China, have significant upstream investments in Sudan’s energy sector. He said additional sources of oil and gas on the world market are welcome. For over two decades the United States has promoted the reduction of barriers to energy trade and investment worldwide to enhance global energy security. “However, the economic support such investment provides regimes such as Iran and Sudan can undermine efforts to encourage policy changes that will reduce global instability and enhance energy security for all,” Wayne said. Committee Chairman Richard Lugar said that India and China, to cope with their growing energy needs, are reorienting their foreign and domestic policies and investing heavily in securing supplies from abroad. He pointed out that India’s state-owned Oil and Natural Gas Company has invested about $3 billion (euro2.5 billion) in overseas exploration and energy projects since 2000, while China also has invested several billion dollars during the same time frame. Both countries are creating emergency oil reserves and stepping up domestic oil and gas exploration, Lugar added. “This activity has implications for our current relationships with China and India, as well as America’s own energy future,” Lugar said. Wayne said China has been particularly active in the purchase overseas energy-related assets and in cutting bilateral oil deals. “In the past ten years, Chinese national oil companies have acquired interests in upstream oil projects in Burma, Kazakhstan, Venezuela, Sudan, Iraq, Iran, Indonesia, Ecuador, Peru, Yemen, Oman, Azerbaijan as well as small shares in projects in Canada and Australia,” Wayne said. He said the China National Petroleum Corporation (CNPC) plans to spend $18 billion (euro15.02 billion) in overseas oil and gas development between now and 2020. But, he said, despite the increased pace of activity, China’s outward investment still pales in comparison with that of the US. “China’s cumulative realized stock of investments overseas in all commercial sectors totaled approximately $37 billion (euro30.87 billion) for all countries at the end of 2004. By comparison, US direct investment stock abroad stands at over $2 trillion (euro1.86 trillion), including $15 billion (euro12.51 billion) in China,” he said. ap dailytimes.com.pk