<From Peak Oilers to Citizens for Sustainable Living The Oil Drum Market Strategists: Oil May Average $93/bbl in 2007 (and that's if nothing goes wrong...)>

14 comments on The continuing presence of China in the market

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Rick on September 14, 2005 - 11:16pm Permalink | Subthread | Comments top
Another important little signal. With 77% of reserves owned by governments, and producers are becoming more and more captive to particular countries, it looks like oil is becoming less fungible by the day.

If fungibility disappears, markets will not work. And where will that leave us?

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mw on September 14, 2005 - 11:34pm Permalink | Subthread | Parent | Comments top
Some might argue that oil has never been fungible, at least not without the aid of military, over a great percentage of the world expanse.

Just look at the relative importance of domestic or foreign military in areas of important world production. One doesn't have to get very far outside the 'civilized' west before oil + M16s (or Kalashnikovs) are constant companions.

If we factored in the cost of government and private military operations that support, defend or influence oil production world wide, price/bbl would probably double.

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14 comments on The continuing presence of China in the market

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