End of COVID? What the Future of International Shipping of Oil deals looks like? The future may be bleak, but it’s important to prepare for the worst and that is what we are doing. In an uncertain world, it’s important that we all stay prepared for any eventuality and this means being prepared in case a country gets into a dispute over its territorial waters with another. In the case of the oil and gas industry, this means being prepared for the possibility of oil spills and accidents.
If that were to happen, which nation would be hurt? Which shipping route would be affected? What would the ramifications be? These are questions that have plagued us for years and we have learned them by heart, “Aha!” We would know the answer and so we would prepare ourselves accordingly.
This may seem obvious to those of you who have been studying international relations but to those who aren’t so familiar, it can be a bit overwhelming at first. For example, how would Venezuela respond? Would China be upset at how close South America was to American territory? Would India be upset? Would Russia be worried? And what about the Middle East?
Well, the answer is probably not what you think it is and it would be rather unwise for the United States or anyone else to start thinking about the end of COVID anytime soon. That said, there are certain things we need to be prepared for in the future and one of those things is a possible end of oil shipping. You see, the United States Navy is one of the most powerful armaments in the world and they have the technology, the know-how and the manpower to get their ships to destinations across the sea. The Chinese have the same technology and the manpower, but they also have many other ships that can perform these same tasks which makes winning the battle for trade with China all the more difficult.
If the Chinese did take control of the oil market, it would be bad news for everybody including the United States. However, the Chinese have an army of consultants who can advise them on how best to manage the flow of commerce. They also have construction companies which have the man power, the technology and the equipment necessary to do whatever it is they want to. So if the Chinese wanted to, they could pretty much set the terms of trade and everybody would be happy. Unfortunately, that isn’t the way things work in the real world so we have to be prepared for any eventuality.
Now that we know there might be an end of a VID? What then? Well, if there is an end of oil exports from the United States, what will happen? Well, for one thing, that leaves the United States with less money, which means we are going to have to turn around and re-adjust our shipping rates.
The other problem is what will happen when that oil finds its way into the hands of the Chinese. China is buying up more oil as it needs it, but will they use it? If they did, it would definitely cause a global crisis and affect the price of oil. At the very least it will add quite a bit onto our ships fuel bill.
Is the end of a VID? Not necessarily, but it looks that way. It’s been noted, though, that when an oil crisis hits, the Chinese tend to like it. Perhaps it’s because they realize that the United States is their last line of defense against global warming and that anything they do that improves their nation’s ability to protect itself is a good thing.