China Is Reaping Biggest Benefits of Iraq Oil Boom

[RandomGuy]

EN is not an idiot, nor is he a (whatever the that is). He is a stubborn er tho!
Ad Hominem. I get a star!

Technically it isn't ad hominem. Insulting, but not a logical fallacy.

He isn't wrong because he is an idiot. He is an idiot because he is wrong. Or stubborn.

[RandomGuy]

it's still going over your head

The *contract* for those 10 extra units is out there for *everybody*. The extra 10 units of production are going to be added to the Net world production whether it's China, Exxon or any other Oil company.

As a matter of fact, Exxon and every other oil company have as much desire to exploit those extra 10 units as the Chinese.

The extra 10 units added to the Net world production are inevitable, and have nothing to do with the Chinese, it has everything to do with Iraq extending a contract.

China isn't even taking a loss. They're simply accepting terms on a contract that are not *as profitable* as Exxon or other Oil extraction company want it to be.

Let me know when you actually wrap your head around what's actually happening.

Honestly, this is beginnig to remind me of an argument I once witnessed two coworkers having.

They were both arguing saying the same thing, but slightly differently. Neither one of them seemed to grasp that they were both making the same argument.

The Chinese are actually happy to lose money on resource extraction as they are willing to lose money on the resources to be able to keep up exporting manufactured goods.

Whether they are doing so here... is still not really all that evident. Their companies are notoriously opaque.

[RandomGuy]

Actually, I was out of line by calling RG a ing idiot. I apologize to RG (edited the post now, but the apology stands). I don't hate him or anything. I just think he doesn't really understand what is happening in this arrangement.

This isn't China trying to exploit some previously undiscovered oil rig somewhere else. These are oil fields that go to China, Exxon or whoever Iraq decides gives the better offer.

Meh, I can be a too, at times. I am most definitely a stubborn son of a . Just read the "moon landings were faked in a studio" thread if you need any proof.

IN this case, I do get it.

I just don't see it as a problem. If the Chinese want to accept slim to negative margins, let them.

Welcome to the new millenia.

[RandomGuy]

as wc would say..........i think you all are a bunch of teachers.

Indeed.

[RandomGuy]

It was simply an opinion based on ample evidence from other net-exporter countries. Evidence presented actually supports the notion that net-exporters do fall for that trap.

I also don't buy the 'Republicans won't stand for this' angle. Republicans are very happy to hand out subsidies, including farm and oil. This is a fact.

I wouldn't even be surprised if the Republicans would propose such a thing, and the Democrats would oppose it. That's just how politics work in this country.

Republicans are happy to subsidize businesses, yes. Farm is one of the things they very hypocritically subsidize.

I just don't see enough of a poltical push for subsidies on gasoline in the US. Tea party doo-dahs and green dems would align against that to kill it dead. Odd, but my take on what would happen to such a thing.

[FuzzyLumpkins]

The only thing that I would say is that the world oil market does not strike me as a true free market where typical supply and demand notions are sovereign.

It's one giant price fix.