Saudi-Chinese accordTucked away on p. 35 of the Feb. 6, 2006, Oil & Gas Journal is a short item headlined “Saudis, Chinese agree to landmark energy accord.” Although details of the “accord” are not known, its implications for the US are immense.Saudi oil production is showing signs of topping out and perhaps faltering. Certainly, the time is past when the Saudis’ surplus capacity could absorb the world’s increased demands for crude oil year after year. China views Saudi reserves as an important future source of crude. Similarly, India, with its burgeoning economy, cannot be far behind in relying increasingly on what for them is a prime source of sho...

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