This is a good article on the world oil situation.
We are seeing the beginning of a new era in the Middle East where other players, particularly China, will move in and want to cut deals and alliances. The U.S. and Europe are trying to curb Iran’s nuclear program, to stop it from developing the bomb, but the Chinese have signed a $70 billion energy deal with Iran, and it will be very difficult to get them on board at the UN Security Council.
One of the main causes of friction between China and Japan involves access to oil and gas deposits in the East China Sea. The Chinese are also developing a strong foothold in Pakistan, where thousands of Chinese workers are building a new port in Baluchistan at Gwadar, which sits right at the entrance to the Persian Gulf.