I have been following the many deals being made around the world by oil & energy producing nations (with a focus on Venezuala & China) for the last few months with much interest. As we all know oil makes the world go ’round and sets the neo-con “hearts” a flutter.

For background on how Venezuala has been standing up to the US and forging deals with China see:

The Great Game part III & China Moves Closer to Latin America

I also peruse EnergyBulletin quite frequently as it is a great aggregate source for world energy news.

Yesterday, Al Jazeera reported on a conference of nations hosted by Brazil that not only went unreported in the American press, but one that must make the US policy makers (same people as the energy guys) quake in their boots.

[more on the flip]

Nations at the summit include Saudi Arabia, Kuwait, Iraq, the United Arab Emirates (UAE), Algeria, Egypt, Qatar, Libya, Oman, Syria, Yemen, Venezuela, Ecuador, Argentina and of course Brazil.

Between them, they currently pump around 27.26 million barrels per day (mbpd) of the world’s demand of 84 mbpd or around 32.5% of total production.

While we aren’t likely to see an immediate impact from this conference, one of its participants noted:

Dr Muhammed-Ali Zainy of the Centre For Global Energy Studies in London believes that: “Yes, Brazil in particular can play an important role in [oil] field development, especially somewhere like Iraq.

“They helped Iraq a lot in previous times. I do not think you are going to see any real concrete structures coming out of this meeting, but it could be a start of some extra political, economic and cultural bonds.”

Uh oh Cheney, they’re onto you guys. Man, you really should have left Chavez alone and stuck to Saddam & your pals the Saudis. Hell, even Castro has found oil that’s of course off-limits to you.

“Brazil helped discover some of the great fields in the past in Iraq for example,” says Dr Zainy. “Along with Venezuela they can play an important role in oil field evaluations and at the same time they can win things like service contracts amongst some of the Arab nations. Of course, in return, they could be remunerated in oil.”

….

Venezuela has been looking long and hard for alternatives to simply supplying the United States with its demand for crude oil. Although there have been recent fluctuations in supply, Venezuela – the world’s fifth largest exporter – averages around 13% of the daily imports of the US.

Recently, however, they have been branching out, penning new deals with Spain and a new player in the global energy market, China.

…

China has also figured prominently in South American oil infrastructure. It recently signed deals to build refinery projects in Venezuela and has made some possible exploration deals as well.

This could have prompted the recent news that Venezuela wants to sell two of its US-based refineries. It says they are unprofitable and amount to “a subsidy to the US economy”, according to President Hugo Chavez.

Seriously guys, are you that stupid to have provoked a guy right when your next rival on the world stage, China, was making overtures? And about that coup attempt…

Brazil too also exports some of its very heavy deepwater crude oil to the Chinese, being less able to refine the sour product at home.

Opec nations too have been opening up new supply routes to the Chinese markets. So this summit may spur the participating nations into more deals and a greater possibility of energy related tie-ups in the future.

“While this [summit] is not going to affect powerful organisations like Opec,” said Dr Zainy: “It may help these nations to more co-ordinated policies, some extra deals and better political relationships. Those may bear fruit in the future.”

The Great Game lives on. And once again the US is behind. Far behind… and all the the domestic laws in the world won’t stop it.

Now about those Russians… how did that trip go for ya Dubya? Might want to start making nice with Vlad before everyone decides to switch to the Euro and cut you out…

I suggest everyone invest in a Hybrid asap.

{all emphasis mine}

Cross posted at Daily Kos

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