Question 1 Who in the world uses the most oil?
Question 2 Where do the oil users get the oil from?
If you answered, 1) “The western countries”, and 2) “The Middle East”, you would be fairly close to the truth or the truth, as it was, for most of the last century.
In the last few decades we have seen the USA and the western nations using most of the world’s oil, and sourcing it from the Middle Eastern countries.
In more recent years, the amount of oil being used by China is on the rise. Soon, your answers to the above two questions will be “China”, and “Africa”.
Be prepared for a world-wide shifting of the scales.
Seasons change!
For most of the last century, we have seen “the world’s oil” coming from the Arab nations, and consequently, much of the world’s petrol dollars flowing to these nations. There may be sheiks who used to ride camels who now ride around in a Merecedes-Benz, and there may be ex-goat-herders who are now among the wealthiest people on the planet.
If you have a few grey hairs, you may recall the days when Japan was a poor nation, or when Singapore and Malaysia were poor nations. You may recall Arabs who lived in tents and not mansions. Twenty or thirty years ago, some of the wealthiest countries, and some of the wealthiest people, were virtually unheard of by many of us.
Where does China source her oil?
The Middle East has been fought over for centuries, with or without the issues of oil, religion or the western world. While the rest of the world is sourcing their oil from an area that has been fought over for hundreds of years, what is China doing?
Ignoring the western demand and the Middle Eastern supply, China is quietly and carefully drilling for oil in Africa Shh!
The Chinese are making friends in Africa, building infrastructure, creating jobs, buying oil. The Chinese are sourcing oil to infuse into their growing economy. African people who used to till the soil are now drilling for oil, on larger wages. Their once uneducated children, who were destined to work farms, are now studying to become geologists and engineers for the oilfields.
The Chinese are adding value to Africa in the form of sending in new currency and cheaper imported goods. Just as the Chinese bought plenty of Australian steel and coal, then gave Aussies cheap plasma screen televisions, the Chinese are now doing similar things with the African nations to get oil.
Thank God and watch the destination of your dollar.
The Chinese economy is booming, India is coming second, and Australia is going along for a ride on the coat-tails of its Asian neighbours. It is making money, creating jobs and things are looking good.
Next time you go shopping, you may make a conscious effort to “Buy Local” to keep jobs here and to support your immediate neighbours inside of your country. Or you may have a broader mind and realize that some of your neighbours are a thousand miles away.
“Buy Local” when you can and when you want to support locals. Buy Asian sometimes without feeling guilty. After all, they are our neighbours and they buy our stuff too! It is possible that your job ultimately depends on a product, service or raw material being sold in Asia.
Show your support for your country, just invest into it. Or invest into other countries that invest into your country.
Think Global, Act Local
Be alert and not alarmed. Learn the “destination of your dollar”. Know that much of China’s and India’s wealth is spent in Australia. Imagine if you bought shares or real estate in Japan or Singapore before they become a wealthy nation. Now think of China and India and imagine how much money you can make in the next few years
To find out “who’s taking your money” and where it ultimately ends up, call a good financial planner and ask them. To find out which companies or countries will make money from the changing world economy, call a good financial planner and look at which is the safest way for you to profit from the change in global tides.
You may find that investing into China or India is tricky, but you may be able to invest where the Chinese and Indians spend: look at companies listed on the Australian Stock Exchange or contact a wealth coach who knows about Australian companies.