Can Iran Give What It Does Not Have?

In a twisted world much like where we live in, people are looking into the facts of what they can have and the facts of what others can give them.  Iran then is now being questioned as to what they can give to the world and not what the world can give to Iran with all of the problems that it is facing.  Iran needs to know its status in the world and it seems as if Iran is not going to have a good standing now that their responsibility and their needs when it comes to the world is not at a high rate.  Does the world need Iran?  The answer seems to be in the negative.

Since the sanctions imposed by the United States and the sanctions imposed by many countries, like the European Union as well as the fact that the United States has order many countries to cut their oil imports from Iran, it now seems as if the world does not need Iran’s oil imports at all.

In this world of oil needs and oil hungry countries, it seems as if Iran is not one of those countries that people should look at.  Having that in mind is something that is special and something that makes everything work and makes something that it worth fighting for.

Economists and analysts are now saying that roughly around $100 million a day in revenue that is no longer flowing into Iran’s economy and this is one reality check that Iran would have to do.  The United States cut 350,000 barrels per day, the European Union cut about 600,000 barrels per day, these are only the cuts of the major countries and do not include the small countries.  Hence, it seems as if Iran cannot give what it does not have and what other cannot offer it.

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Iraq is Now Producing More Oil Than Iran

Because of the tragedy that is the two earthquakes that struck the world and the industries of Iran, Iraq is now taking the place of this economy and it seems as if they have always wanted to beat Iran out of their oil industry.

Iraq is now producing more oil than Iran and this is not a good thing at all.  Now that Iraq has faced the challenge that they have to face and Iraq has made sure that they would have to make some adjustments when it comes to their oil production now that more countries would look at them over Iran, what will happen next after this tragedy?  Will Iran ever be able to produce the oil demands of China and India?

Right now, it is clear that Iraq has taken the place of Iran producing more than 3.2 million barrels per day. According to Hussein al-Shahristani, the deputy prime minister of Iraq’s energy department, “Oil production is now at 3.2 (million bpd), higher than other countries like Iran, the United Arab Emirates and Kuwait.”

This reality is a fact that Iran and its government would have to address sooner than later.  People need to know that they would have to realize that they need a way for them to make sure that even if they are hurting after the death toll that has reached hundreds if not thousands of people, their economy is deteriorating and the oil demands of China and India will not wait for them to pick up all of the pieces of their economy and start over.

Hence, the problem now is the Iraq is producing more oil than Iran, and the solution is simply that Iran should learn to step on their sadness and watch their oil production.  After all, the oil industry of Iran is the only thing that the world looks for in the country.  Without it, Iran might be erased from the global economic map.

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Why They Think China is Winning the South China Sea Dispute

(Paula Gasol)

China is big. China is rich. China is powerful. There is no way China will lose anything to anyone – not to the US, not even to the US plus five other nations, and certainly, UN what?

The hush-hush and murmurs over the disputed islands in the South China Sea is getting louder and louder, even more so now that the US has decided to be the megaphone for such powerless countries as Vietnam and the Philippines. Naturally, China calls foul – like they were direly aggravated by the US’ call to stop bullying on the said small countries.

Now some analysts see China as winning the battle over the oil-rich disputed territories. As to what the reasons are, the investment news did not clearly say anyhow. It just merely assumed that China is winning – hands down.

And they might be right – or making it happen over at the stocks department. See, China’s state-run petrol driller, China National Offshore Oil Corp (CNOOC) Ltd is doing so well in the stock market as of late. The confidence it has been gaining lately must be because of their aggressive drilling methods (read: mega military backup) in the disputed islands. Naturally, what could a smaller PetroVietnam do against a mega powerful force? And the Philippines? You can even almost forget about them being part of the island disputes. All they do is whine and pray that the US backs them up. And as for the US – that’s a totally different story on these oceans.

For obvious reasons and not, China might definitely be winning the game. They have the most advanced technology on most of the islands in the said territory. And they are not backing down at all – they got everything figured out: keep the disputes between each other and never let the UN mingle with it. They can surely, absolutely handle the smaller nations claiming the area but they would have some problem contesting with the international law on water territories should the UN decide to intervene. Why isn’t the UN saying anything anyway?

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What is Next for The US Dollar?

Kim Lee

The United States have imposed sanctions on Iranian crude oil and this meant that countries will no longer be able to pay Iran in dollars or at least have transactions with Iran when it comes to their oil.  This also meant that countries, who would want to keep their relationship with United States, should learn that they will have to end all ties with Iran.

However, since there will always be countries that cannot be controlled by the sanctions imposed by the United States, they will always find a way to get back in the game especially when what Iran is boosting their economy with is an indispensable part of our economy –OIL.

What are these countries?  China and India, yes, these countries have in fact created a new way to deal with Iran without having to give up their dollar reserves and without the United States pointing fingers at them.  China and India are trading gold for oil.  

In order to get oil imports from Iran, these clever countries decided to go back old school style and try to make their countries wealthier with some Iran crude imports.  Of course, “monetizing gold” for Iran will be their problem but this is a good problem for Iran.

Iran now has an edge when it comes to their oil and China and India has opened this window for Iran.  Iran now knows that they can control countries just through their very own oil and they are only getting started.  Who needs the United States sanctions when fact is that Iran can be paid in gold and not in any other currency in the world.

So what is next for the United States dollar?  With the world becoming more open of trading indispensable goods to indispensable goods, the United States dollar will have to reach that ‘indispensable’ status and not just in terms of bank reserves or else, the world might go back to trading with gold.

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Politics in China and Its Oil Needs

Politics plays a very important role in our everyday lives.  With the very importance and problems of China, political analysts are now saying that they would have to make sure that they do not enter into a quasi war.  “In this quasi war, each side has capitalized on its own strengths and the other side's weaknesses”  This means that on one point, we can see China play on its oil needs and at the same time play on what it can give to other countries.

An inter-civilization quasi war had developed between the Western civilization and the Islamic civilization following the 1979 Iranian Revolution.  However, before looking at the intricacies of the quasi war between the West and Islamic countries, let us first answer the question:  what is a “quasi-war”?

In terms of a quasi war, a quasi-war is a kind of war that has the almost resemblance to a war except it is a war that has been unofficially declared and had not official start and will probably have no official end.  Historically speaking, the first quasi war was the war between the United States and France from 1798 to 1801.  

Hence, a conventional notion of war is a battle of one side to another side wherein each side as a right to exist and the parties are only enemies until the end of the war, the main goal of a war is the subjugation of one party over another.  

Usually, a war is ended when one party has already been defeated by the other party.  This means that not unless China accepts that they have been defeated when it comes to their oil needs over what they can offer, China cannot move on with their economics and the power play of the world may eat up China alive.

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United States Does Not Need Oil From Middle East

The United States is now showing off and making sure that they will prove their point in the coming months or at least days.  The United States is now saying that they do not need any oil from the Middle East and they can prove this by the facts and the reality that they do not need anything from the Middle East.

Coming from that is the fact that the United States is also looking into what they can and where they can get the oil that they need.  They are not even looking at Iran in order for them to get oil.  They are not even depending on Saudi Arabia to give them the oil that their country needs.  The United States is now trying to be dependent and make sure that they will not need the oil coming from the Middle East.

Reporters from the United States are saying that the United States do not need to depend on the oil coming from the Middle East, to wit:

"Some people say America is just trying to take the oil (in the Middle-East). People think of America as global Dracula sucking the oil. The reality is US doesn't need the Middle Eastern oil for ourselves. Our oil supply comes from our country, Canada, western hemisphere countries but almost no oil from the Middle-East (is received)”

Walter Russell Mead, the James Clark Chase Professor of Foreign Affairs and Humanities at Bard College in the United States, said that the United States is an active country and it is doing its best in order to make sure that they will love what they need and at the same time get the best of what will make them realize the beauty of life and the beauty of their country.  The land of milk and honey and the land of greener pastures are trying to be self sufficient and self dependent on all of their oil needs. 

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China in an Economic Point of View

China is one of the economies to watch out for.  People all know that China is to be embraced always as a country that will make people enjoy life and that will make people see what they can see.  China is now and fast becoming something to watch out for. 

Being the second largest economy in the world, China is being looked at as a country that should always be at everyone’s watch. Hence, when talking about the economy what is important to look at China’s Gross Domestic Product.

Having that in mind, it is important to ask about China’s GDP in relation to the GDP of the world.  Has seen in the figure about, economists studied the fact that China’s economic growth slowed in the past quarter of 2012 and this can be attributed to the fact that there are some things that China continue to fall on.

China has continued making transactions with sanctioned countries.  China continues to make sure that they will enhance their nuclear weapons.  China is also still in the rocks with other countries because of issues on territory and one of these countries is the Philippines, a known ally of the United States.

China is not doing itself any favor at all.  China continues to make themselves not worth the time of countries.  China is also not doing what they can do to make their lives less miserable.  China is also not even considering negotiating with countries that they need like the United States to which they owe a lot of debt amounting to billions of dollars.
   
Hence, China should learn to make sure that they will get the control that they can get for its economy or else, China will continue to fall out of the grid and they have no one to blame but themselves.

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China’s Biggest Oil Problem

(Paula Gasol)

China’s biggest oil problem may not be paying for Nexen at $15.1 billion. Neither is it about extracting oil shale from their huge deposits at the least ecologically disturbing process. Neither is it getting the best deals out of Iran’s sanctioned oil products. 

In fact, China’s oil problems are nowhere close to anything that resembles petrol. China’s biggest oil problem is keeping stable prices for soybean oil.  

See, the biggest drought in the United States has caused grain products to soar in prices. And soybean was not spared. 

And China, being the world’s biggest consumer of edible oil and the US’ number one market for soybean oil, this is a HUGE problem. 

See, countless Chinese homemakers have found an irrepressible liking to using soybean oil to their food. In fact, China loves everything cooked with oil. So the drought in the US and its effects on soybean oil prices will definitely be felt to almost every Chinese home.

The Chinese government has been trying its best, hardest to secure edible oil prices so as to limit the debilitating effect of an (edible) oil price hike. They have recently ordered their edible oil companies to double their production. They have also been actively looking for alternative sources throughout the world. 

As of yet, the prices are in check and acceptable. The rise from the beginning of the year was still very much within the acceptable range, which is good news AT THE MOMENT. When the low grains harvest in the US will then finally hit the world market, the costs are expected to rise beyond average households’ grasp. 

Well, China may have been successful at their other oil exploits. They may soon be conquering all the continents’ markets for oil. Ironically, the most basic of oil products – part of what the world calls basic human need, food – is seemingly out of its grasp. Oh how wonderful it would be if the South or East China Sea areas were soybean –rich!

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