Thursday, April 19, 2012

Argentina Just Made Themselves China's Bitch

After screwing Spain-based Repsol and chasing away even the remote possibility of cooperation by any international oil company by seizing YPF, the Argentinians have only one place to turn now - China.

Changing ownership of an oil company doesn't change the elemental fact that it takes money and know-how (and increasingly sophisticated and specialized know-how) to pull oil out of the ground. So, Argentina will need money and connections if they are ever to get any more oil out of the ground now that they've made YPF radioactive. The only potential partner willing to provide either or both will be China, but the ChiComs know this and they will ask for and get very favorable terms. Argentina will find itself playing by Chinese rules in short order.


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