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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (59264)	12/22/2009 9:06:27 AM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 218621

I'm personally working upon my telepathy :O)

To: TobagoJack who wrote (59264)	12/22/2009 10:57:07 AM
From: carranza2	1 Recommendation Read Replies (2) \| Respond to of 218621

With no indigenous oil to speak of, and the problems associated with coal, China needs desperately, and in a big hurry, to develop alternative energy. The UK and the US were blessed with either coal or oil during their capital accumulation/industrialization stage, i.e., when they were in effect emerging markets. China has neither as my appreciation is that it has to import both. It does of course have substantial but insufficient supplies of coal. It is rather a problem for any take-over-the-world-and-become-the-new-hegemon plans China may have because without cheap and reliable sources of energy, no big steps forward can take place, or they are very expensive. There is no doubt in my mind that the leadership recognizes this. The problem, of course, is that oil is a fabulous store of energy. Except for nuclear plants which require substantial infrastructure, it has few competitors. There is more latent energy stored in a good size gasoline station than in just about anything else. Peak Oil, however, has changed things forever. The days of cheap and easy expansion thanks to easily found and transported oil in massive quantities is over. Welcome to the new paradigm. Let's see where it goes because I am damned if I know what it looks like. The one thing I am certain about, however, is that oil will not be replaced overnight. Until it can be effectively replaced, it will be used with increasing efficiency and, of course, sold at higher prices. The overarching problem is that we are, in a global way, exhausting everything worthwhile that is cheap and easy. Easy oil, easy gold, easy coal, easy copper, easy fish, etc., exist no longer. Having come late to the party, this is a serious problem China will face, particularly since its business model requires it to use lots of resources to manufacture goods. The next 2 or 3 decades are going to be very interesting.