Best of the Week
Most Popular
1. Five Charts That Show We Are on the Brink of an Unthinkable Financial Crisis- John_Mauldin
2.Bitcoin Parabolic Mania - Zeal_LLC
3.Bitcoin Doesn’t Exist – 2 - Raul_I_Meijer
4.Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - Nadeem_Walayat
5.Labour Sheffield City Council Election Panic Could Prompt Suspension of Tree Felling's Private Security - N_Walayat
6.War on Gold Intensifies: It Betrays the Elitists’ Panic and Augurs Their Coming Defeat Part2 - Stewart_Dougherty
7.How High Will Gold Go? - Harry_Dent
8.Bitcoin Doesn’t Exist – Forks and Mad Max - Raul_I_Meijer
9.UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - GoldCore
10.New EU Rules For Cross-Border Cash, Gold Bullion Movements - GoldCore
Last 7 days
Jim Rickards: Next Financial Panic Will Be the Biggest of All, with Only One Place to Turn… - 20th Jan 18
Macro Trend Changes for Gold in 2018 and Beyond - Empire Club of Canada - 20th Jan 18
Top 5 Trader Information Sources for Timely, Successful Investing - 20th Jan 18
Bond Market Bear Creating Gold Bull Market - 19th Jan 18
Gold Stocks GDX $25 Breakout on Earnings - 19th Jan 18
SPX is Higher But No Breakout - 19th Jan 18
Game Changer for Bitcoin - 19th Jan 18
Upside Risk for Gold in 2018 - 19th Jan 18
Money Minute - A 60-second snapshot of the UK Economy - 19th Jan 18
Discovery Sport Real MPG Fuel Economy Vs Land Rover 53.3 MPG Sales Pitch - 19th Jan 18
For Americans Buying Gold and Silver: Still a Big U.S. Pricing Advantage - 19th Jan 18
5 Maps And Charts That Predict Geopolitical Trends In 2018 - 19th Jan 18
North Korean Quagmire: Part 2. Bombing, Nuclear Threats, and Resolution - 19th Jan 18
Complete Guide On Forex Trading Market - 19th Jan 18
Bitcoin Crash Sees Flight To Physical Gold Coins and Bars - 18th Jan 18
The Interest Rates Are What Matter In This Market - 18th Jan 18
Crude Oil Sweat, Blood and Tears - 18th Jan 18
Land Rover Discovery Sport - Week 3 HSE Black Test Review - 18th Jan 18
The North Korea Quagmire: Part 1, A Contest of Colonialism and Communism - 18th Jan 18
Understand Currency Trade and Make Plenty of Money - 18th Jan 18
Bitcoin Price Crash Below $10,000. What's Next? We have answers… - 18th Jan 18
How to Trade Gold During Second Half of January, Daily Cycle Prediction - 18th Jan 18
More U.S. States Are Knocking Down Gold & Silver Barriers - 18th Jan 18
5 Economic Predictions for 2018 - 18th Jan 18
Land Rover Discovery Sport - What You Need to Know Before Buying - Owning Week 2 - 17th Jan 18
Bitcoin and Stock Prices, Both Symptoms of Speculative Extremes! - 17th Jan 18
So That’s What Stock Market Volatility Looks Like - 17th Jan 18
Tips On Choosing the Right Forex Dealer - 17th Jan 18
Crude Oil is Starting 2018 Strong but there's Undeniable Risk to the Downside - 16th Jan 18
SPX, NDX, INDU and RUT Stock Indices all at Resistance Levels - 16th Jan 18
Silver Prices To Surge – JP Morgan Has Acquired A “Massive Quantity of Physical Silver” - 16th Jan 18
Carillion Bankruptcy and the PFI Sector Spiraling Costs Crisis, Amey, G4S, Balfour Beatty, Serco.... - 16th Jan 18
Artificial Intelligence - Extermination of Humanity - 16th Jan 18
Carillion Goes Bust, as Government Refuses to Bailout PFI Contractors Debt and Pensions Liabilities - 15th Jan 18
What Really Happens in Iran?  - 15th Jan 18
Stock Market Near an Intermediate Top? - 15th Jan 18
The Key Economic Indicator You Should Watch in 2018 - 15th Jan 18
London Property Market Crash Looms As Prices Drop To 2 1/2 Year Low - 15th Jan 18
Some Fascinating Stock Market Fibonacci Relationships... - 15th Jan 18
How to Know If This Stock Market Rally Will Continue for Two More Months? - 14th Jan 18
Everything SMIGGLE from Pencil Cases to Water Bottles, Pens and Springs! - 14th Jan 18
Land Rover Discovery Sport Very Bad MPG Fuel Economy! Real Owner's Review - 14th Jan 18
Gold Miners’ Status Updated - 13th Jan 18
Gold And Silver – Review of Annual, Qrtly, Monthly, Weekly Charts. Reality v Sentiment - 13th Jan 18
Gold GLD ETF Update.. Bear Market Reversal Watch - 13th Jan 18
Stock Market Leadership In 2018 To Come From Oil & Gas - 13th Jan 18
Stock Market Primed for a Reversal - 13th Jan 18
Live Trading Webinar: Discover 3 High-Confidence Trade Set-Ups - 13th Jan 18
Optimum Entry Point for Gold and Silver Stocks - 12th Jan 18
Stock Selloffs Great for Gold - 12th Jan 18
These 3 Facts Show Gold Is Set to Surge in 2018 - 12th Jan 18
How China is Locking Up Critical Resources in the US’s Own Backyard - 12th Jan 18
Stock futures are struggling. May reverse Today - 12th Jan 18
Three Surprising Places You See Cryptocurrency - 12th Jan 18
Semi Seconductor Stocks Canary Still Chirping, But He’s Gonna Croak in 2018 - 12th Jan 18
Land Rover Discovery Sport Panoramic Sunroof Questions Answered - 12th Jan 18
Information About Trading With Alpari And Its Advantages - 12th Jan 18

Market Oracle FREE Newsletter

6 Critical Money Making Rules

Joint Chinese-Indian Oil Tanker Patrols Possible?

Politics / Crude Oil Aug 19, 2011 - 01:27 AM GMT

By: OilPrice_Com

Politics Aside from cost, the major problem for oil importing countries is getting the purchases safely home. Essentially, there are only two options - pipelines and maritime transport.

Both are vulnerable to attack and this is increasingly preoccupying Chinese leaders, especially as, according to China's Ministry of Industry and Information Technology, China's dependence on imported oil rose to 55.2 percent for the first five months of 2011, surging to 9.61 million barrels per day.


What to do to secure uninterrupted supplies of 'black gold?"

Negotiate.

In a development with significant implications for the Pentagon's professed "full spectrum dominance," (i.e., quash all military opposition) the Hindustan Times reported that Beijing is cautiously sounding out India about the possibility of joint naval patrols in the Indian Ocean to safeguard tanker traffic.

An official of China's Development Research Centre under the State Council, speaking on condition of anonymity, said, "The Indian government should take the initiative to propose a cooperation mechanism on sea-lanes in the Indian Ocean.'' Realizing the contentiousness of such a proposal with immense understatement the bureaucrat added, "China cannot initiate such a proposal. The U.S. and Japan will not support China's move" before concluding, China has to protect its ships on its own. The US is not an ally. India is not an ally."

Actually, China has had an intermittent naval presence in the Indian Ocean since December 2008, when it sent three warships to liaise with the Combined Task Force 150 (CTF 150), set up after the 11 September attacks to patrol the Arabian Sea and the coast of Africa to combat terrorism. Under command of the fleet's flagship DDG-169 Wuhuan destroyer, the task force of two destroyers and one supply ship arrived in waters off the Somali coast in order to provide security for Chinese merchantmen, as of the 1,265 Chinese merchant ships transiting the Gulf of Aden in 2009, seven were attacked by pirates.

Indo-Chinese naval cooperation is not as far-fetched an idea as it might appear on the surface. Nine months after the Chinese flotilla began operations off Somalia Indian National Security Advisor Shiv Shankar Menon said, "Is it not time that we began a discussion among concerned states of a maritime system minimizing the risks of interstate conflict and neutralizing threats from pirates, smugglers, terrorists," calling for discussions among "Asian states" and other powers on the issue.

Many in China think that the time has come for a more assertive Chinese maritime presence. Li Li, a strategist in the South and South East Asian and Oceanic Studies Institute of the China Institute of Contemporary International Relations observed, "China has not announced its Indian Ocean policy. It will take time. China's rising so fast. It is, more and more, in China's interests to protect our sea-lanes in the Indian Ocean,'' hardly surprising, as China now receives 70 percent of its petroleum imports via the Indian Ocean.

Such a move will doubtless ring alarm bells in Washington, as except for the Somalia task force China's Navy has largely limited itself to the country's coastal waters. The Pentagon's perceptions of Chinese naval capacities are shifting dramatically however, as last week's announcement that the country's first aircraft carrier, the refurbished Soviet Varyag had begun sea trials. Once fully operational, the Chinese carrier should be able to carry up to 40 Sukhoi 33-derived J-15 naval air-superiority fighters and up to 20 rotary aircraft, including Ka-28 anti-submarine helicopters

While hardly a threat to the Pentagon's current 11 operational carrier task force groups, China's maritime accomplishment led U.S. Secretary of State spokeswoman Victoria Nuland to pontificate, "We welcome any explanation from China about why it needs this kind of equipment." Combined with China's overtures to India, no doubt Pentagon wargamers are going back to reread their well-thumbed copies of Mahan's Influence of Seapower upon History.

A number of practical concerns will impact a Sino-Indian naval alliance, should it ever come to pass. First and foremost, the countries are fierce economic rivals.

Secondly, in 1962 India and China fought a brief but bloody war in the Himalayas over a disputed frontier, the final delineation of which yet remains to be resolved.

And last but hardly least, China for many years has been a close ally of India's arch rival Pakistan, and has thrown millions of dollars into helping Islamabad develop its Gwadar port on the Arabian Sea.

Accordingly, while Beijing's trial balloon of nautical cooperation would represent a major regional geostrategic shift, for the moment it remains just that - a trial balloon.

Source: http://oilprice.com/Energy/Energy-General/Joint-Chinese-Indian-Oil-Tanker-Patrols-Possible.html

This article was written by Dr. John CK Daly for Oilprice.com who offer detailed analysis on Crude Oil, Geopolitics, Gold and most other commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com

© 2011 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Parth V
19 Aug 11, 11:51
China and India is the new alliance forming

Contrary to this articles views the Sino Indian border is very quiet. 1962 is a dead affair China only wants Tawang in Arunachal due to its Tibet connections. In 1971 India had a major altercation with USA and USS Enterprise. China and India are not major trade competitors as China is in manufacturing India in knowledge base industry. The US and England have monopolized banking and both China and India would like to end that (obviously). China's support of Pakistan is not a major issue as Pakistan too will drop out of its anti-India position. If culture is any indicator China and India will be allies in a giant Asian alliance. Note Indians and Chinese inter marry more in USA than with their European counterparts.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules