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Permalink Reply by Antsu-in-Japan on December 1, 2008 at 4:49

Excellent point, VSC 'O'!! I said before in another post that the US is not spinning in its own little vacuum. It's only a matter a time before other countries start developing their natural gas supplies. The Japanese government had been in a heated row with China over pockets that were discovered in an area in the sea that both countries lay claim to. (See below) Yep, the US had better get it in gear before other countries come along and sweep all this opportunity from under its feet!!

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June 15, 2008 -- Updated 0212 GMT (1012 HKT)

Reports: Japan, China reach gas exploration deal

Kyodo: China agrees to let Japan invest in its East China Sea gas exploration project

Nihon Keizai: China, Japan would equally share profits from the gas project
Undersea gas fields are one of numerous territorial disputes between Japan, China
Both nations have held rounds of talks in a bid to settle the dispute since 2004

TOKYO, Japan (AP) -- Japan and China have agreed on a gas exploration deal in the East China Sea, striking a compromise over a long-running bilateral row, news reports said Monday.

Kyodo News, citing sources close to Japan-China relations, said late Sunday that the two nations are expected to announce the deal as early as this week. The Nihon Keizai daily, Japan's top business paper, also said Monday that the two governments were finalizing details on the gas deal.

Kyodo said China had agreed to let Japan invest in its gas exploration project in the East China Sea. The Nihon Keizai daily said China and Japan would equally share profits from the gas project.

While calling the deal a compromise over the long-running energy dispute, Kyodo said the agreement did not "appear to bring an end" to the row overall because the issue of demarcation remained.

The undersea gas fields are one of numerous territorial disputes between Japan and China in the East China Sea, ranging from where to demarcate each country's exclusive economic zone to sovereignty over a small island chain.

China is tapping gas fields, but Japan says they should be jointly developed.

Both nations are eager to develop new sources of energy and have held rounds of talks in a bid to settle the dispute since 2004.

Kyodo said the compromise deal underlined Beijing's priority on economic development, while the Nihon Keizai daily said Japan could obtain exploration rights under the deal. The paper did not give the amount of Tokyo's investment in the gas project.

Following May talks with Chinese President Hu Jintao in Tokyo, Japanese Prime Minster Yasuo Fukuda said the two countries were on the verge of resolving the dispute over the exploitation of natural gas fields in the East China Sea.

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Permalink Reply by JB on December 2, 2008 at 5:55

No royalties?? I believe we're all overreacting. There will always be demand for NG, at least in our lifetimes.

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Permalink Reply by The_Baron on December 2, 2008 at 6:00

It is still much cheaper to produce locally. importing LNG is cost prohibitive.

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Permalink Reply by VSC DeSoto South on December 2, 2008 at 6:48

My point is that as the other countries fast forward exploring, developing their technique, while we are wading in the water.
They will develop ways to ship their NG over here cheaper than we can get it out of the ground.
Also, if we get moving and learn and advance our technique we could be exporting and making more money.
The point is things move too slow here and we are left in the dust.

Steel, automobiles, computers, tv's, I could go on and on.
Not only do they take our initial innovations in technology, they then advance it, make it come to production faster and cheaper , then come back and slap us on the behind with as they take our checks. For that matter they could drain all the experienced, labor, pipeline, etc since they have more money and are diligently in the development of their minerals. Slowing down our progress.

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Permalink Reply by Wolverine on December 2, 2008 at 7:44

VSC '0' Hey, I also agree!!! We need to get our thumbs out of our a _ _!!! Get on it, stop being slow!!! Stop!!! Importing foreign fuel, oil, ect. Use the natural resources under our feet!!!

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