-Due to tensions in the Middle East China has now aggressively pursued another other oil rich region, South America.
-This being in the United States hemisphere of influence it is ratcheted up tensions between China and the United States.
-another event in April 2007 was the first South American energy summit .Delegates met on an remote island off the coast of Venezuela. They discussed further cooperation with South American nations and also, pushed by Venezuela to end their dependence on the region’s major buyer of oil, the United States.
-High gas prices have sprung new technologies to be able to tap into even the most remote oil deposits such as heavy oil. Venezuela has the world’s largest reserve in heavy oil. China recently has acquired large sums of contracts with Venezuela.
-Washington is very unhappy with the problem China is creating for the United States.