Showing posts with label Strategic Resources. Show all posts
Showing posts with label Strategic Resources. Show all posts

Thursday, June 12, 2025

China Defeats US in Trade Deal

News has just come out that Trump has reached a trade deal with China and, at first glance, it appears to be a strategic defeat for the US.
 
Note:  We’re not going to discuss the political or financial aspects of the deal, only the military implications.
 
With regard to the military, the two key elements of the deal are:
 
1. US will continue to receive magnets and rare earths
2. US will continue to accept Chinese students
 
The magnets and rare earths aspect only furthers our vulnerability to this strategically vital resource.  China has never met a treaty or deal that it wasn’t willing to break (UNCLOS tribunal, for example) when it suited them so why would we think that China won’t threaten to cut off our supply the next time some disagreement or crisis arises?  We are continuing our dependency on our enemy.  That’s insane.  It would be far better to quit, cold turkey, and initiate a crash program to produce our own materials.
 
If this deal were just a stopgap while we frantically established our own strategic materials supply, I might be able to accept it but I see no evidence that we’re engaged in any massively accelerated program to do so.  Human nature, being what it is, we’ll just continue to depend on China without really addressing our vulnerability in any useful time frame.
 
We should be waiving every permit and review requirement in order to establish our supply as quickly as possible.  If necessary, we should be subsidizing construction and production;  after all, it’s a strategic necessity!
 
Every Chinese student we educate is both a technological spy and a future scientific asset to be used against us.  We are educating our enemy and giving them a look at cutting edge university research.  That’s insane.
 
From a military perspective, I can’t understand what Trump was thinking.  If I’m China, I’m extremely happy with the deal.

Friday, August 4, 2023

Self-Imposed Resource Vulnerability

We’ve discussed strategic raw material resource vulnerabilities, such as rare earths.  Here’s another self-inflicted vulnerability … oil in our strategic reserve.  Our strategic oil reserve was reduced for political purposes rather than strategic needs, as was its intended purpose. 
The strategic reserve is at 346,758 barrels, its lowest level in 40 years, according to the U.S. Energy Information Association.[1]
The Biden administration has reportedly canceled plans to purchase 6 million barrels of oil to replenish the Strategic Petroleum Reserve because the prices of oil are expected to keep rising following a cut in output by Saudi Arabia.[1]
The Department of Energy announced its intention to purchase the oil on July 7 to replenish the strategic reserve after the Biden administration released 180 million barrels last year to ease prices following Russia's invasion of Ukraine.[1]
In total, Biden has released around 260M barrels of oil from the reserve.  Therefore, the proposed purchase of 6M barrels would have replenished only 2% of the oil drained from the reserve.
 
Note:  The strategic oil reserve has a capacity of 714M barrels.  The current level is around 340M barrels.
 
 
 
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[1]Newsmax website, “Admin Ditches Plan to Buy 6M Barrels of Oil for Reserve”, Michael Katz, 2-Aug-2023,
https://www.newsmax.com/newsfront/strategic-oil-reserve-biden-adminsitration/2023/08/02/id/1129429/