Rise of Fuel Consuming Dragon

US is the world's largest energy consumer, it absorbs ¼ of world's oil production, since

the end of the Cold War its status as the only superpower has allowed it to consolidate its oil

supremacy, but this supremacy is increasingly disputed by China.

China has intensified its efforts all over the world in search of oil since the last decade, its

high handed manner breaks the conventional wisdom of doing business, unlike the rudamentary

knowledge that underpins a lot of the western aspirations, its striking conformation towards

negative forces acting against its rise to become an Empire.

Making a lot of demand changes, shift from rice to other grains is driving up the prices of

those commodities. In terms of oil, people are making a shift from bikes and mass transportation to

their own individual cars. As long as the state continues to keep prices low it's going to encourage

growth in that area. Subsidies have a huge impact on the cost model of factories, Chinese factories

tend to run on a razer thin margin. Subsidies are offered to the Chinese oil companies to keep

inflation tamed. Money flowing in is a driving force. At an individual level citizens are gaining

wealth due to this booming economy.

China's car sales and unquenchable thirst for oil has created problems for many western

countries which are heavily dependent on cheap oil from Latin America and the Middle East.

Chinese oil companies are increasingly bidding higher prices for oil; its strong foot forward has

threatened many western oil companies , an example of its might coming from the $ 50 billion offer

for a stake in Nigeria's reserves , the oil majors have come under increasing pressure. IT is believed

to overtake US as the largest consumer of oil in the world by 2015. Western oil companies such as

Shell and Chevron have no choice but to allow the government to renegotiate contracts and retake

oil fields. That China is now coming to the western hemisphere and bidding for the same oil that the

US is so reliant on, caused immense consternation, especially in the Congress.

Energy, politics and economics

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