What’s in favor of a Chinese sale boom? It creates jobs and China needs jobs for the armies unemployed due to the downturn, its creates CAPEX monsters that can be filled with further debt money in order to give the financial bubble another lifeline, its satisfies the nationalistic feelings of self-sufficiency and reduces the threat of the US navy cutting the supply lines in case of a confrontation. What speaks against shale in China? Shale in the US depends on two factors (more but there are two fundamental ones) – very entrepreneurial players that will do what needs to be done in order to squeeze the lemon (don’t count on bureaucrats in China pulling that off) and the owners of the soil are also the owners of the subsoil in the US which makes them eager to cooperate. Since when has China cared for its population?
An oil discovery in a remote corner of northwestern China could trigger a surge in shale drilling, benefiting service companies and providing a needed output boost for the world’s biggest importer, according to analysts at Morgan Stanley.