Do any other oil and gas analysts feel that the 1950s are approaching again? I don’t mean gasoline priced at 25 ¢/gal, either. No, I’m thinking more of the Cold War.
That’s what came to mind last week as I saw stories involving belligerence–I’m sorry if that seems like a strong word to use–on the part of China and Russia.
The first story concerned China’s warning to ExxonMobil over a bit of acreage off Vietnam.
Foreign ministry spokesman Liu Jianchao said China’s position on the South China Sea matter is “clear and consistent” and that China has already stated “clearly” its position to relevant parties.
“China opposes any behavior that undermines China’s sovereignty and jurisdiction in the South China Sea,” he said.
Business deals at risk
Sources close to ExxonMobil said Beijing’s envoys had protested several times in recent months, warning executives that they would put future business interests on the mainland at risk if they continued with the Vietnam deal.
The sources said ExxonMobil was confident of Vietnam’s sovereign rights to the exploration blocks involved, but added that pressure from China added complications that could not easily be ignored “for business reasons.”
If that is not enough to convince ExxonMobil, then it will be interesting to see what the Chinese do next. Perhaps they will launch the gun boats and call for a military “exercise” of some sort in the region.
That’s the sort of diplomacy Russia looks to be exercising these days, too, especially in Latin America where it has signaled a new military alliance of sorts with Venezuelan President Hugo Chavez.
In fact, Russian President Dmitry Medvedev last week hailed closer ties with Chavez, overseeing energy deals bringing the two key oil producers and rivals of the US closer together.
Venezuela welcomes Russia
Not missing a beat, Chavez declared his country would readily allow Russia a military base if it asked for one. Said Chavez: “If Russia’s armed forces want to be present in Venezuela, they will be given a warm welcome.”
“We are considering issues linked to our strategic partnership, be it in the energy sector, industry, finance, science and technology, or military issues,” Chavez said.
For his part, Medvedev also hailed the agreement.
“Venezuela is now the most important partner of the Russian Federation,” said Medvedev, adding that “Our relations are a key factor of regional security...We have one common task–to make the surrounding world more democratic, fair and secure.”
Chavez also said he would pursue fresh purchases of Russian arms, “because the North American empire...has plans to invade Venezuela, to disarm Venezuela.”
“We are a peace-loving country, but we are threatened by the United States...because Venezuela’s oil reserves are the world’s largest,” he told a news conference. “And we are forced to defend ourselves.”
Yes, it seems like déjà vu for the Cold War.