Podcast on China’s oil supply fragility, and why it’s so important

Here’s a link to a new podcast I taped yesterday with Sam Chambers, co-author of a new book on how important the oil tanker trade is to China’s growth.

What’s fascinating about the book is how little-discussed its subject matter is.

Two places in the world, the Strait of Hormuz and the Malacca Strait, hold the key to the global economy.

If passage through them is blocked, or even slowed, within a couple of weeks shipment of your new Ipod, TV, clothes or pretty much anything else non-food related, would grind to a halt as China, and many other Asian economies, run out of energy supply.

We are all rightly concerned about the role of finance in greasing the wheels of commerce.

But how many of us have considered that if a 1.5 mile wide stretch of sea (Malacca) ever becomes blocked for any length of time, energy supply will matter much more than the banks do, at least for a while.

Here’s a link to the book about it.

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