Business Commentary for Rational Individuals

Where's the Oil in Asia? China and India Team Up

Dr. Bill Belew

Issue III - June 22, 2006

Introduction by Mr. Stolyarov: Dr. Bill Belew explains how Chinese and Indian oil companies have collaborated to purchase an oil field in Syria and therefore have found ways around the Far East's scarcity of oil deposits. Instead of engaging in political conflict and confrontation, China and India have decided to take the route of economic cooperation -- which will enrich their residents in the end. 

Asia has a paltry 5% of the world's oil reserves.

Compare that to the former Soviet Union which has more than one fifth (20.8%) and Africa and the Middle East, which have nearly 2/3s of the oil reserves (60.5%).

What to do...China National Petroleum Co. and India's Oil & Natural Gas Corp. teamed up to buy a Syrian oil field!

I thought about doing that once -- buying a gas station. But then, I realized I still had to buy the gas before I could pump it out.

The reason India and China went in to buy the field together was so that they didn't bid each other out of a fair price for the field. Now, that sounds smart to me.

Why can't other countries find a similar working relationship?

What do you think?

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Dr. Bill Belew is a former Intelligence Officer for a Destroyer Squadron. He lived 20 years in Japan, where he started a language school for Japanese ECS. Dr. Belew teaches classes for a vocational school and online for a national university.

See Dr. Belew's blog, PanAsianBiz, for news and discussions about business and current events in Russia and Asia. See ZhongHuaRising for Dr. Belew's reports on business in China, RisingSunofNihon on business in Japan, and TheBizofKnowledge on business education.

Click here to view TRBJ's Issue III Index.

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