Global concerns, scramble to secure energy assets and strong gasoline demand in the US during the summer driving season continued to plague the oil markets, almost the entire week. Riding on strong global demand, growing uncertainties and simmering geopolitical tensions, particularly over Iran and North Korea, oil prices seemed to be scaling new heights. With prices flirting with $75 mark, a new psychological barrier was breached late last week and apprehensions persist about further bull ride.

An indication of strong demand came when the US Department of Energy released its weekly data late last week. The report from the US Department of Energy showed gasoline reserves having risen unexpectedly by 700,000 barrels, however, crude oil inventories fell more sharply than expected.

This all happened despite the fact that the OPEC’s oil output rose to a seven-month high last month, as Iraq finally began exporting crude from its northern fields via a Turkish port after almost a year. The total output of the 11 members of the Organization of Petroleum Exporting Countries rose 240,000 barrels per day in June to 29.78 million bpd, a survey of consultants, shippers, industry and OPEC sources showed.

With oil markets continuing to defy all logic and expectations, the scramble to secure oil supplies is on. Energy asset prices are on rise all around and money appears to be no stumbling block in the process. Major players are trying to grab what is left of a diminishing resource.

Interestingly the focus is on Africa. Efforts are on by energy deficient powers to grab up the assets, with the prices beginning to appear immaterial. The onus seems to be acquiring assets — apparently at any cost. Fears about lack of assets and scarcity of supplies led many to turn blind to the rising cost of the assets, especially when compared even to recent past. China, Russia, even India and other smaller yet emerging Asian powers are calling on ports in Africa, in a bid to outbid others and acquire precious energy assets in the otherwise little explored continent. China is definitely by far ahead of competition in this field. It’s three energy companies, CNPC and its main subsidiary PetroChina, the Chinese National Offshore Oil Company (CNOOC) and Sinopec are all looking overseas. These three companies have spent some $9 billion on acquisitions abroad over the last five years. These acquisitions have focused on Central Asia, Africa, Latin America and South East Asia. CNPC is also warming up to the Rosneft offering. There are also reports that China is also discussing various concessions with Saudi Arabian Oil Company.

However, China the new entrant in the energy markets has pushed the market to dizzy heights. Terry Macalister writing in Guardian early the week said the decision by Sinopec of China to pay the hefty sum of $1 billion for the right to explore for oil in deep water off Angola has shocked the west, which fears it could be left behind in a global scramble for resources.

Similar oil prospects off the coast of the impoverished African country were selling for $35 million less than a decade ago, when western oil giants such as BP and Shell had the field almost to themselves.

The competition has taken the asset prices to new heights, almost elbowing out the competition from the West.

The bidding war that has driven up the price of exploration rights in Angola was not just the work of Sinopec. Total of France spent $670 million on a 40 percent stake in the assets next door on block 17.

And it is not just Angola that is benefiting. The Nigerian government has just sold 16 exploration licenses in deep water areas for $500m and secured promises that the buyers will spend a further $20 billion on new infrastructure projects such as gas-processing units. Licenses have been offered almost everywhere recently: From the Gulf of Mexico to Brazil to Libya. It is only in fast-declining areas such as the North Sea that few of the large companies are really interested, although drilling activity has risen here, too.

The oil grab is also triggering a merger and acquisition bonanza. China National Petroleum Corporation recently bought PetroKazakhstan for $4.2 billion, while China National Offshore Oil Corporation caused panic in Washington last year when it tried to buy the US oil group, Unocal.

In the past, the forthcoming stock market float of controversial Russian giant Rosneft — expected to be valued at $80 billion — might have been avoided by Western companies. However, according to Macalister, western oil majors might not be able to turn down such an opportunity if the price is right, partly because it would offer vital access to an increasingly protected Russian market, especially in view of the fact that most governments and the public in the oil-rich Middle East are even more wary of Western oil firms.

Similarly the growing power of leftwing, nationalistic governments in South America is forcing Western firms to pay more or leave. The current wave of resource nationalization in South America is forcing many a western companies either to give in to the changing environment or leave the field.

This is indeed not the American century, the new world order, the neocons, now in power in Washington, may have envisaged.