Signs of the Times - April 2012 - (Page 16)

TECHNOLOGY UPDATE Soft Power, the Chinese PR program In his book The Future of Power, Harvard professor Joseph S. Nye Jr. reported that China, to promote its culture, had established several hundred Confucius Institutes worldwide. It’s part of China’s “Soft Power” program. Today, more than 320 Confucius Institutes and 369 Confucius Classrooms operate in 96 countries. The following U.S. universities have incorporated Confucius Institutes: Akron, Arizona State, Bryant, Buffalo, California, Chicago, Cleveland State, Emory, George Mason, Hawaii, Indiana (at Purdue), Indianapolis, Iowa, Kansas, Kennesaw State, Maryland, Massachusetts, Memphis, Michigan State, Michigan, Minnesota, Nebraska (at Lincoln), New Mexico State, North Carolina State, Oklahoma, Pace, Pfeiffer, Pittsburgh, Portland State, Purdue, Rhode Island, Rutgers, San Diego State, San Francisco State, South Carolina, South Florida, Texas (at Dallas), Texas A&M, Troy, Utah, Valparaiso, Wayne State, Webster, Western Michigan and Wisconsin (at Platteville). Add Chicago Public Schools, Miami University (Ohio), the China Institute (New York), the Community College of Denver, Presbyterian College, University of California at Los Angeles (UCLA) and the University of Washington (Seattle). U.S. petroleum-product prices U.S. petroleum-product demand has fallen consistently since 2005, because of less driving, efficient cars and the use of ethanol and natural gas, but this downturn spawns from consumer activities. If anything, the world is using more commercial fuels and plastics. One web source says about 4% of the world’s annual oil production becomes feedstock for plastic. U.S. oil drilling yields approximately 9 million bbl/day; the nation consumes roughly 19 million bbl/ day and exports around 2 million bbl/day. We buy approximately 2.8 million bbl/day from Canada, 1.2 million bbl/day from Mexico and the same from Saudi Arabia, followed by less than 1 million bbl/day equally from Russia, Venezuela and Nigeria. Venezuela has some of the world’s largest oil reserves and is South America’s top oil-producing country. In November 2011, the U.S. Energy Information Administration said the United States imported 764,000 bbl/ day of Venezuelan crude oil and gasoline. Due to Venezuela’s recruitment of other markets, principally China and India, this number has declined. Venezuelan President Hugo Chavez has said he wants to end all oil sales to the U.S. Chavez, like Ahmadinejad, is one more politico meddling with your fuel and plastic costs. The oil buyers U.S. oil/fuel providers also compete with other oil buyers, and, as China’s use has grown (its use, between 1998 and 2008, increased five times faster than other nations), its oilacquisition dealings have become increasingly expansive. Venezuela sends more than 400,000 barrels of crude to China every day. On December 16, 2011, The Los Angeles Times reported China as having increased its claim on Venezuela’s oil production with $4 billion in loans. The infusion brought Venezuela’s China-owed debt to $30 billion, which was secured by future deliveries of Venezuelan oil, the LA Times said. Jorge Giordani, Venezuela’s Planning and Finance Minister, has said China receives no discount on the oil, which indicates Venezuela gets the loans sans financing costs or interest rates. On March 6, The Wall Street Journal said China’s state-run petroleum companies are “…scooping up minority stakes and signing joint-ventures, to the tune of $17 billion in U.S. and Canadian deals since 2010.” China’s national oil companies are among the world’s largest oil firms. In 2010, they spent $29.39 billion on acquisitions, with more than half – $15.74 billion – going to Latin America. The Keystone XL pipeline Good arguments and much passion surround the Canadian-born, Keystone XL oil pipeline debate. Most complaints regard environmental, not economic, issues and are analogous to complaints directed at any pipeline – even those transporting natural gas to heat American homes. Truth is, this country is awash with pipelines. Also, most observers don’t realize much of the Keystone pipeline is already in place; it’s been in use for years. We’re talking access to 170 billion barrels of Canadian oil. Unless, of course, Canada sells it to China. Westbound pipeline routes to Vancouver already exist, as do the major Vancouver ports that would ship the oil to Asia. Another argument says the Keystone-delivered oil, once processed, might be exported. However, the parallel is any exported Canadian oil refined in the U.S. results in pipeline/refinery jobs, processing fees and taxes. Some contenders say we shouldn’t pipe the Canadian oil cross country, but instead build refineries close to high-use areas, like Chicago or New York City. They haven’t studied the route. The Keystone pipeline will pass through the Cushing, OK refinery/storage site where it can be processed, or distributed, via existing lines, to other U.S.-based refineries, for processing and distribution. Lastly, should Ahmadinejad, Chavez or others restrict our oil supplies, the Keystone pipeline could become an extraordinarily welcome oil source. U.S. citizens own more than 250 million registered vehicles; approximately 1.5 million are hybrids. n 16 SIGNS OF THE TIMES / APRIL 2012 / www.signweb.com http://www.signweb.com

Table of Contents for the Digital Edition of Signs of the Times - April 2012

Signs of the Times - April 2012
Contents
ST Update
Technology Update
Vinyl Apps
Strictly Electric
LED Update
Technology Review
Software Update
Sign Museum News
New Products
Times Square Update
That Sign is Fine (Art?)
Victory at Yorktown
Temporary, with Permanent Appeal
The Value of Signs
Anatomy of an M&A Failure
Industry News
Advertising Index
Editorially Speaking

Signs of the Times - April 2012