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Friday, September 09, 2005

What should the US do?

In “What CNOOC leaves behind,” L.Tyson (2005, Aug 15) says, CNOOC Ltd.’s trying to buy Unocal Corp. So, CNOOC Ltd. is one of the biggest oil companies, of which most is owned by the government of China (70%). And, they made an offer to buy Unocal, which is $18.5 billion. Also, that offer made the US worry about how huge China’s economy is. However, that offer failed, and both the US and China were trying their best for who might win. Nevertheless, the CNOOC bid could be accepted if Unocal approved it and 1% is what Unocal’s production of oil is. If we take a look since1988 we can see how the US government controls business, but nowadays there is competition in business. However, China is getting a lot of good technology to handle the problem, which is that they cannot drill more in order to increase oil; that means if oil has gone they could not drill. So, China is working on this problem, and they are truing to decrease the demand of energy, which I think the US should do also. CNOIC and Unocal deal would have pass the national security or increase oil reserves.

In view of the increase in US population and demand for energy, they should try to develop energy supply in the future. I disagree with Unocal’s letting CNOOC Ltd., own Unocal, which may help to increase China’s economy. I believe that US needs more oil and they do not have to worry about it because Saudi Arabia can provide it. Saudi Arabia is one of the biggest oil suppliers in the world, and the Middle East oil has been the world’s most reliable supply. However, the low cost of energy is available for US now, but what about the next 50 years? I mean if the US lost Unocal they will spend more money on oil to cover their daily demand. Also, Unocal could cover 1% of the daily demand of the US, which means saving money.

The US needs new technology to solve the problem, which is finding a way to get the energy supply. And, I think the US does not care about Unocal; they are more worried about China, which is causing a threat to the national security of the US. So, I think even if CNOOC Ltd. owned Unocal, the US must not be worried about this issue, because they must think about how they could cover their daily demand of energy, and that is the problem. For example, nowadays the US is facing a big problem, which is oil price; the price of oil is very high and it is hard for the people to pay this price.

In addition, the US could do without using oil, and that seems too hard for the US to do without oil. But, if the US work hard and start from now they might be able to find other research of energy, as China is working hard in their technology. I mean renewable energy; for example, solar, wind, nuclear power, and hydro-eclectic.

In conclusion, they should try to develop energy supplies in the future with the new technology; which might help the US to cover their daily demand and increase their economy. Also, the US would be able to get more energy research, and resolve the energy problem before the problem occurs.

*References:
Tyson, L. (2005, Aug 15). What CNOOC leaves behind. Business Week. 101. Retrieved Aug 25, 2005 from Ebsco: Academic Search Premier database.

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