Tuesday, July 26, 2005

The secret to the US energy policy

I think I am starting to see the key to the US energy policy emerge in the soap opera that is the CNOOC-UNOCAL deal. It is a bit of stretch, but stick with me here:

  • US is concerned about the Chinese military;
  • Like all militaries, the Chinese need oil to run it - oil is, as they call it, a strategic supply;
  • The US army needs oil, but less of it than the Chinese, because it is smaller;
  • SUV, hugely popular cars in North America but really serve no purpose for most people (that giant hill on the way to the corner store), use a lot of oil; so...........

Promote the sales of SUVs in North America, use a lot of oil to go and buy milk and leave less for the Chinese army...........that's the ticket!

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