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September 26th, 2017

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Sharp Decline in Crude Oil and Its Consequences
Przemyslaw Radomski  Aug 16  

Jericho Oil raises C$5.7M from cornerstone investors
  Aug 13  

Will Crude Oil Extend Gains?
Przemyslaw Radomski  Jul 29  

Molori Energy Ready to Explode Higher
Bob Moriarty  Jul 20  

Oil Market Update
Clive Maund  Jul 14  

»» more editorials in the archives

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Ux U3O8 Price (Uranium)Sept 11th, 2017
$20.70 +$0.45 www.uxc.com



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expert analysis & newsletter briefs

NexGen Energy Ltd.

"My top pick for 2016 is NexGen Energy Ltd. . . Arrow is an emerging world-class deposit that is still in the early stages of discovery. The state—it being so early in the delineation and development process—means a lot of upside still remains. . .the company just closed a $21M financing, which means the company has enough cash to carry through 2016 and beyond." (12/23/15) - Gwen Preston, Resource Maven

NexGen Energy Ltd.

"My top pick for 2016 is NexGen Energy Ltd. . . Arrow is an emerging world-class deposit that is still in the early stages of discovery. The state—it being so early in the delineation and development process—means a lot of upside still remains. . .the company just closed a $21M financing, which means the company has enough cash to carry through 2016 and beyond." (12/23/15) - Gwen Preston, Resource Maven

Fission Uranium Corp.

"Fission Uranium Corp. announced it entered into a binding letter of intent with China's CGN Mining, a subsidiary of nuclear giant China General Nuclear Power Group, to acquire 19.99% of Fission as part of an CA$82M strategic investment, along with a potential future offtake agreement on production from Patterson Lake South (PLS). . .we urge investors to bolster positions in Fission as the deal derisks development financing, and in the interim, should fund PLS through full feasibility and permitting." (12/22/15) - David Sadowski,

Energy Fuels Inc.

"Energy Fuels Inc. is the only conventional uranium producer in the U.S. and the second-largest producer overall. It has the potential become #1, given the projects and mines it has on standby or that are close to being in development. At full ramp-up we expect the company to be able to produce 5–7 Mlb/year, in a country currently producing 4–5 Mlb/year. The U.S. consumes 55 Mlb/year, but only about 10% is supplied domestically. U.S. utilities seeking security of supply will greatly prefer U.S. producers over those from Kazakhstan, Russia or Africa. This company is well positioned to benefit from higher uranium prices. We have a Buy rating with a target price of $11.85/share." (12/22/15) - The Energy Report Interview with Rob Chang

Fission Uranium Corp.

"Fission Uranium Corp. announced it entered into a binding letter of intent with China's CGN Mining, a subsidiary of nuclear giant China General Nuclear Power Group, to acquire 19.99% of Fission as part of an CA$82M strategic investment, along with a potential future offtake agreement on production from Patterson Lake South (PLS). . .we urge investors to bolster positions in Fission as the deal derisks development financing, and in the interim, should fund PLS through full feasibility and permitting." (12/22/15) - David Sadowski,


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from the publisher
  Robert J. Moriarty

Welcome to 321energy.



China and raw materials
Thomas Chaize
October 26th, 2005

The economic success of China is often perceived as a miracle fallen from the sky. Idea is the following one, the Chinese are the happy winners in a tombola which their attributed an exponential economic growth, nevertheless this success is not result of the fate. China planned, organized, structured this growth. Certainly, if we looks of very near this growth is of muddled appearance nevertheless if we takes more distance, we notices the coherence of this economic boom. Current growth is strategic for several years, it is not the fruit of the fate, but the result of a politics with very long term as any other countries has never made it. This long-term approach is totally foreign to our contemporary political customs, indeed our reflections are rather the following ones: why to foresee for 20 years while I steer for some months? However, in the game of chess, the one that sees farthest wins part.

Some years ago the responsibles for companies left in China with the rather « condescending » idea to teach the Chinese communists Capitalism. Nevertheless, we does not teach Kasparov chess, we observes, we sets and owe pulls lessons, some decades of collectivism did not remove traditions millenniums of the Chinese business. Indeed, the Chinese civilization is from the Middle Age, is already very early in the cultural, technical, scientific and especially commercial domain. Let us not forget that Marco Polo, Venetian, that is the City of the Business at the time, stemming from a family of traders, takes notes and teaches a great deal of his stays in imperial China.

These companies try to invest with difficulty how in China, but nothing is conceived for them. Only Chinese objective is the development of China, its autosufficiency, its independence (economic, energy.) and it is not to help the foreign companies, here no fair of the era « post soviétique ».

To feed this growth, China needs energy, of metals, its monetary political supports its growth and its supply in raw material.

In a first part, it is question to speak of the energy political, then the industrial metals and to end of the currency, the gold and silver.

I. The energy strategy of China.

One of the rare countries has resources a coherent and effective politics toward raw materials is China (India too), as the good player of chess, China places these pawns for a long time in advance and it is going to make " check and checkmate " in three knocks.

1. The strategy:

Petroleum, gas, coal, uranium, nothing is forgotten by China to assure its energy, present necessities and especially future (over 10 , 20 , 30 years even more).

This politics is coherent only with a long-term optics, with the aim of the day when price will matter little and where only the availability of the energy will be important.

Apparently China overtook economic paradigm of the inexhaustible natural resources, and administers its development as a consequence.

China pauses its pawns on all the available compartments of the chessboard. She exceeds all the obstacles, the countries with political risks (Sudan, Angola, Nigeria, Gabun), purchases in the full price (deposit of Sudan, investigation in Brazil), the wrestling of political iron, the Occidental oil private grounds of the chief warrant officers (as for example Nigeria), or challenges the USA (contracts with Iran, Iraq, and Venezuela), in brief China buys all which is available and uses its political, military force (sale of weapons), economic and commercial to arrive at its objectives.

2. Some examples:

Economic current event is filled with information which indicate a very coherent politics of the « Empire of the Middle » toward sources of energy, here is some examples (important it’s a number limited of its):

-SINOPEC (China Petroleum and chemical corporation) buys for 100 billion dollars of gas in Iran for 30 years and she develops Yadavaran's Iranian petroleum.

-Agreements are signed with Hugo Chavez's Venezuela for three billions concerning the delivery of oil productions in China (petroleum, heavy raw product, Orimulsion). Venezuela gives the license to the CNPC (Mocked National Offshore Oil Coproration) the right to exploit new deposits of gas of Caracales and Intercampo Norte.

-Sino - Japanese battle for the purchase of the petroleum in Siberia, the construction of an oil pipeline and the offshore sea exploitation of China.

-Signature of agreements with Brazil for oil drillings and the construction of a pipeline, the agreements are, seems it, signed for three times the market price.

-The reserves of natural gas and petroleum of Algeria interest also China, SINOPEC AND CNPC signed contracts with Sonatrach (The Algerian company of search for oil exploitation), Sino - Algerian oil cooperation is every day more important.

-In 1997, the CNPC managed to obtain the exploitation of the two oil fields of Kazakhstan, in spite of Russian and American pressures, these oil fields are of a size of 1 and 1.5 billion Barrels. National Petroleum Corporation has in project to build an oil pipeline jioned Kazakhstan to Xinjiang (province of the Chinese western North).

The energy politics of China does not limit itself to the gas and to the petroleum:

-China signs agreements with Australia for the investigation and the exploitation of its deposits of uranium to allow the supply of its future park of nuclear power stations in construction.

-Even the coal is not forgotten by Beijing which signed long-term agreements with BHP (BHP, it is 30 % of the world exchanges of coal with Coke).

While Europe and North America discover with bewilderment which the petroleum can climb over 70 dollars, China, it, continues, noiselessly , to develop its energy strategy with very long term to assure its future supply. While the Occidental countries look for some fiscal craftiness to calm the rumbling discontent of the motorists about the increase of the essence, China, it, buys underground all which is still accessible in petroleum, gas, uranium and even in coal. Strategy is simple, to buy all which available in big or small quantity about is price, for bitumen’s sands of Alberta by way of the Australian coal until the Sudanese petroleum.

To accept that oilfields run out and an unacceptable idea for the group of the Occidental economic circles. Speak to an academic or to a fund’s administrator of the peak of production of the petroleum and you are supposed to be at once a madman, hardly good to lock with a camisole. Nevertheless, the production of petroleum stagnates, demand increases, prices burn and the Chinese place their « lady » in the center of the chessboard.

Second part of this article on China and industrial metals as well on the monetary aspect, the gold and silver will be available next week with conclusions.

Dr Thomas Chaize

Dani2989@voila.fr

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