Energy security of China
Encyclopedia
Energy security of the People's Republic of China concerns the need for the People's Republic of China
to guarantee itself and its industries long- term access to sufficient energy and raw materials. China has been endeavoring to sign international agreements and secure such supplies; its energy security involves the internal and foreign energy policy of China. Currently, China's energy portfolio consists mainly of domestic coal
, oil
and gas
from domestic and foreign sources, and small quantities of uranium
. China has also created a strategic petroleum reserve
, to secure emergency supplies of oil for temporary price and supply disruptions. Chinese policy focuses on diversification to reduce oil imports, which rely almost exclusively on producers in the Middle East
.
According to Professor Zha, China's dependence on foreign sources of energy is not a threat to China's energy security, since the world energy market is not opposed to China's pursuit of growth and prosperity. The key issue is actually internal: growing internal consumption without energy efficiency threatens both China's growth and world oil markets. Chinese imports are a new determinant encouraging oil price rises on the world market, a concern to developed countries. The international community advocates a move toward energy efficiency and more transparency in China's quest for energy worldwide, to confirm China's responsibility as a member of the international community. Energy efficiency is the only way to avoid excessive Chinese demands on oil at the expense of industrialized and industrializing countries. International projects and technology transfers are ongoing, improving China's energy consumption and benefit the whole energy-importing world; this will also calm Western-Chinese diplomatic tensions. China is trying to establish long-term energy security by investment in oil and gas fields abroad and by diversifying its providers.
and domestic reserves such as the Daqing oil field, the PRC became oil self-sufficient in 1963. A US-led embargo
isolated the Chinese oil industry from 1950 to 1970, preventing it from selling on the world oil market
. After the embargo was lifted, China reactivated its links with Japan
and other industrialized nations thanks to its oil exports, which helped bring in foreign currencies and fund key industrial plants and technologies for developing its own export-oriented economy. Chinese oil exports peaked in 1985 at 30 million tons. Rapid reforms, in turn, increased domestic oil demand and led China to become a net oil importer in 1993, and net crude oil importer in 1996.
Since 1996 Chinese oil production has slowly and continuously decreased, while demand and imports have steadily increased. Future Chinese oil reserves (such as the Tarim basin
) are difficult to extract, requiring specific technologies as well as the construction of pipelines thousands of kilometers long. As a result such reserves would be very difficult to develop and not cost-effective, given current market prices.
accounts for approximately 1.4% of China's electricity, which is considered relatively low compared to other developing nations. China still mainly relies on coal
for electricity. China is first in the world in both coal production and consumption, which has sparked environmental concerns. In order to achieve environmental targets in combating pollution
and global warming
, China must ultimately improve its coal efficiency and switch to alternative energy sources.
from Australia and Indonesia is more feasible and cheaper to import than the Tarim basin
pipeline. However, the first West–East Gas Pipeline from Xinjiang
to Shanghai
was commissioned in 2004, and construction of the second pipeline from Xinjiang to Guangzhou
in Guangdong
began in 2008.
Sinopec
accounts for 80% of Chinese oil imports. Refinery capacity is continuously strained, and perennially lags behind fast domestic-demand growth. China has had to rely on entrepôt refineries located in Singapore, Japan and Korea. Oil and gas exploration in the Tarim Basin is ongoing. However, developing this potential reserve is currently not cost-effective due to technological limitations coupled with fluctuations in world oil prices. Therefore, this is considered by some as a last-resort option.
exports. In contrast with the USA, China is not associated with the Arab-Israeli conflicts and may focus simply on oil supply from an economic standpoint. The increase in Chinese dependence on Persian Gulf oil also means an associated increasing economic dependence on Arabian exporters, who will probably not join hands to block exports to China.
Chinese dependence on the Middle East is also a cause of concern for the US. In 2004, when the Bush administration actively discouraged oil companies from investing in Iran, the Chinese company Sinopec
did not comply with its call.
Recently, China has changed its anti-Western diplomatic stance to a softer, global, more efficient diplomacy with a focus on energy and raw-materials security. In post-2003 Iraq, China does its best to comply with UN sanctions.
, since a conflict may trigger a US oil embargo as a consequence. Since Sudan is pro-Chinese and Chad
was pro-Taiwan (and an oil producer since 2003), China had an interest in replacing Chad's president Idriss Déby
with a pro-Chinese leader. The FUC Chad rebellion, based in Sudan and aiming to overthrow the pro-Taiwanese Déby, seems to have received Chinese diplomatic support as well as weapons and Sudanese oil. The 2006 Chadian coup d'état attempt
failed after French Air Force
intervention, but Déby then switched his friendship to Beijing; the field defeat became a Chinese strategic victory.
and Rosneft
for pipeline and oilfield development.
signed an AU$50 billion deal with ExxonMobil
to purchase liquefied natural gas from the Gorgon field in Western Australia
; this was believed to be the largest contract ever signed between China and Australia – ensuring China a steady supply of LPG fuel for 20 years, and comprising China's largest supply of relatively-clean energy. This agreement has been formalised despite relations between Australia and China being at their lowest point in years following the Rio Tinto espionage case
and the granting of a visa to Rebiya Kadeer
to visit Australia.
and started construction of a Central Asia–China gas pipeline.
and the Red Sea
.
, Sudan
, Uzbekistan
, Angola
and Venezuela
also raised concerns for U.S. and other Western diplomacy, since several of these countries are known to be anti-American
and/or known for human rights
abuses, political censorship
, and widespread corruption
. These moves seem to challenge Western powers, by strengthening anti-Western countries. But this is unlikely; as a developing consumer economy, China does not have much of a choice in its sources of supply.
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
to guarantee itself and its industries long- term access to sufficient energy and raw materials. China has been endeavoring to sign international agreements and secure such supplies; its energy security involves the internal and foreign energy policy of China. Currently, China's energy portfolio consists mainly of domestic coal
Coal power in China
The People's Republic of China is the largest consumer of coal in the world, and is about to become the largest user of coal-derived electricity, generating 1.95 trillion kilowatt-hours per year, or 68.7% of its electricity from coal as of 2006...
, oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
and gas
Gas
Gas is one of the three classical states of matter . Near absolute zero, a substance exists as a solid. As heat is added to this substance it melts into a liquid at its melting point , boils into a gas at its boiling point, and if heated high enough would enter a plasma state in which the electrons...
from domestic and foreign sources, and small quantities of uranium
Uranium
Uranium is a silvery-white metallic chemical element in the actinide series of the periodic table, with atomic number 92. It is assigned the chemical symbol U. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons...
. China has also created a strategic petroleum reserve
Strategic Petroleum Reserve (China)
The Strategic Petroleum Reserve is an emergency fuel store of oil maintained by the People's Republic of China National Development and Reform Commission.-Background:...
, to secure emergency supplies of oil for temporary price and supply disruptions. Chinese policy focuses on diversification to reduce oil imports, which rely almost exclusively on producers in the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
.
According to Professor Zha, China's dependence on foreign sources of energy is not a threat to China's energy security, since the world energy market is not opposed to China's pursuit of growth and prosperity. The key issue is actually internal: growing internal consumption without energy efficiency threatens both China's growth and world oil markets. Chinese imports are a new determinant encouraging oil price rises on the world market, a concern to developed countries. The international community advocates a move toward energy efficiency and more transparency in China's quest for energy worldwide, to confirm China's responsibility as a member of the international community. Energy efficiency is the only way to avoid excessive Chinese demands on oil at the expense of industrialized and industrializing countries. International projects and technology transfers are ongoing, improving China's energy consumption and benefit the whole energy-importing world; this will also calm Western-Chinese diplomatic tensions. China is trying to establish long-term energy security by investment in oil and gas fields abroad and by diversifying its providers.
Background
Thanks to the transfer of Soviet oil extraction technologies prior to July 1960Sino-Soviet split
In political science, the term Sino–Soviet split denotes the worsening of political and ideologic relations between the People's Republic of China and the Union of Soviet Socialist Republics during the Cold War...
and domestic reserves such as the Daqing oil field, the PRC became oil self-sufficient in 1963. A US-led embargo
Embargo
An embargo is the partial or complete prohibition of commerce and trade with a particular country, in order to isolate it. Embargoes are considered strong diplomatic measures imposed in an effort, by the imposing country, to elicit a given national-interest result from the country on which it is...
isolated the Chinese oil industry from 1950 to 1970, preventing it from selling on the world oil market
Price of petroleum
The price of petroleum as quoted in news generally refers to the spot price per barrel of either WTI/light crude as traded on the New York Mercantile Exchange for delivery at Cushing, Oklahoma, or of Brent as traded on the Intercontinental Exchange for delivery at Sullom Voe.The price...
. After the embargo was lifted, China reactivated its links with Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
and other industrialized nations thanks to its oil exports, which helped bring in foreign currencies and fund key industrial plants and technologies for developing its own export-oriented economy. Chinese oil exports peaked in 1985 at 30 million tons. Rapid reforms, in turn, increased domestic oil demand and led China to become a net oil importer in 1993, and net crude oil importer in 1996.
Since 1996 Chinese oil production has slowly and continuously decreased, while demand and imports have steadily increased. Future Chinese oil reserves (such as the Tarim basin
Tarim Basin
The Tarim Basin is a large endorheic basin occupying an area of about . It is located in the Xinjiang Uyghur Autonomous Region in China's far west. Its northern boundary is the Tian Shan mountain range and its southern is the Kunlun Mountains on the northern edge of the Tibetan Plateau. The...
) are difficult to extract, requiring specific technologies as well as the construction of pipelines thousands of kilometers long. As a result such reserves would be very difficult to develop and not cost-effective, given current market prices.
China's demand for oil
China accounts for 40% of the 2004 oil-consumption increase, and thus is a key part of the cycle which had led to the oil price increase worldwide. In 2005, a campaign to increase energy efficiency was launched without official Ministry of Energy approval; since the campaign was sporadic, this objective seems hard to meet. Zha Daojiong encouraged increased management of oil and energy in China, noting that "It is fair to say that the threat from ineffective energy industry governance is probably as great as that from the international energy market.". A projection that China would reach South Korean levels of per-capita oil consumption in 30 years, combined with the current average global decline in production, could mean that up to 44 Moilbbl/d (barrels per day) in production would have to be found in the next decade to keep up with increased demand and production declines. That would be the equivalent of roughly five times Saudi Arabia's production. Superimpose a production plateau of 100 Moilbbl/d, and significant real-price increases would be necessary to balance supply and demand. Such increases might have severe effects on the growth of emerging market economies such as China's.Nuclear and coal
Nuclear power in ChinaNuclear power in China
, the People's Republic of China has 14 nuclear power reactors spread out over 4 separate sites and 27 under construction. China's National Development and Reform Commission has indicated the intention to raise the percentage of China's electricity produced by nuclear power from the current 1% to...
accounts for approximately 1.4% of China's electricity, which is considered relatively low compared to other developing nations. China still mainly relies on coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
for electricity. China is first in the world in both coal production and consumption, which has sparked environmental concerns. In order to achieve environmental targets in combating pollution
Pollution
Pollution is the introduction of contaminants into a natural environment that causes instability, disorder, harm or discomfort to the ecosystem i.e. physical systems or living organisms. Pollution can take the form of chemical substances or energy, such as noise, heat or light...
and global warming
Global warming
Global warming refers to the rising average temperature of Earth's atmosphere and oceans and its projected continuation. In the last 100 years, Earth's average surface temperature increased by about with about two thirds of the increase occurring over just the last three decades...
, China must ultimately improve its coal efficiency and switch to alternative energy sources.
Limitations of pipelines and stocks
China's eastern and southern regions have chronic energy shortages, causing blackouts and limiting economic growth. For supplying these regions, liquefied natural gasLiquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....
from Australia and Indonesia is more feasible and cheaper to import than the Tarim basin
Tarim Basin
The Tarim Basin is a large endorheic basin occupying an area of about . It is located in the Xinjiang Uyghur Autonomous Region in China's far west. Its northern boundary is the Tian Shan mountain range and its southern is the Kunlun Mountains on the northern edge of the Tibetan Plateau. The...
pipeline. However, the first West–East Gas Pipeline from Xinjiang
Xinjiang
Xinjiang is an autonomous region of the People's Republic of China. It is the largest Chinese administrative division and spans over 1.6 million km2...
to Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
was commissioned in 2004, and construction of the second pipeline from Xinjiang to Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
in Guangdong
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...
began in 2008.
Sinopec
Sinopec
China Petroleum & Chemical Corporation Limited , or Sinopec Limited , is a majority owned subsidiary of state owned company Sinopec Group. Sinopec Limited is listed in Hong Kong and also trades in Shanghai and New York ....
accounts for 80% of Chinese oil imports. Refinery capacity is continuously strained, and perennially lags behind fast domestic-demand growth. China has had to rely on entrepôt refineries located in Singapore, Japan and Korea. Oil and gas exploration in the Tarim Basin is ongoing. However, developing this potential reserve is currently not cost-effective due to technological limitations coupled with fluctuations in world oil prices. Therefore, this is considered by some as a last-resort option.
Energy efficiency
A key point for China's energy-security goal of reducing oil imports is to improve the efficiency of its domestic energy markets by accelerating pricing, regulatory and other reforms. China is actively looking for smart-energy technology.Foreign relations
| 1990 | 2000 | 2004 | |
| Mdl East | 39.4% | 53.5% | 45.4% |
| Africa | 0% | 23% | 28.7% |
| Asia Pacific | 60.6% | 15.1% | 11.5% |
| other | 0% | 7.2% | 14.3% |
| Sources: CQE, p12-15; CES, p49. | |||
Middle East
On the issue of energy security, China relies mainly on Persian GulfPersian Gulf
The Persian Gulf, in Southwest Asia, is an extension of the Indian Ocean located between Iran and the Arabian Peninsula.The Persian Gulf was the focus of the 1980–1988 Iran-Iraq War, in which each side attacked the other's oil tankers...
exports. In contrast with the USA, China is not associated with the Arab-Israeli conflicts and may focus simply on oil supply from an economic standpoint. The increase in Chinese dependence on Persian Gulf oil also means an associated increasing economic dependence on Arabian exporters, who will probably not join hands to block exports to China.
Chinese dependence on the Middle East is also a cause of concern for the US. In 2004, when the Bush administration actively discouraged oil companies from investing in Iran, the Chinese company Sinopec
Sinopec
China Petroleum & Chemical Corporation Limited , or Sinopec Limited , is a majority owned subsidiary of state owned company Sinopec Group. Sinopec Limited is listed in Hong Kong and also trades in Shanghai and New York ....
did not comply with its call.
Recently, China has changed its anti-Western diplomatic stance to a softer, global, more efficient diplomacy with a focus on energy and raw-materials security. In post-2003 Iraq, China does its best to comply with UN sanctions.
Japan and Korea
When China became an oil importer during the 1990s, its relations with neighboring countries (as exporter to East Asia and importer of Korean and Japanese oil) changed. Its main oil provider changed in a few years from domestic production, to East Asian production, and then to Mideast production. On the other hand, despite insufficient domestic oil output China does its best to stabilize exports to Japan and Korea. China endeavors to continue energy relationships it has created with developed nations, since they contribute to China's energy security with investment and technology. More Chinese oil output is in Japanese, Korean, Chinese, and world interests. Since China lacks strategic entrepôt refineries, it relies heavily on refineries in Singapore, Japan, and Korea.Taiwan
China's dependence on foreign oil weakens its ability to pressure TaiwanTaiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
, since a conflict may trigger a US oil embargo as a consequence. Since Sudan is pro-Chinese and Chad
Chad
Chad , officially known as the Republic of Chad, is a landlocked country in Central Africa. It is bordered by Libya to the north, Sudan to the east, the Central African Republic to the south, Cameroon and Nigeria to the southwest, and Niger to the west...
was pro-Taiwan (and an oil producer since 2003), China had an interest in replacing Chad's president Idriss Déby
Idriss Déby
General Idriss Déby Itno is the President of Chad and the head of the Patriotic Salvation Movement. Déby is of the Bidyat clan of the Zaghawa ethnic group. He added "Itno" to his surname in January 2006.-Rise to power:...
with a pro-Chinese leader. The FUC Chad rebellion, based in Sudan and aiming to overthrow the pro-Taiwanese Déby, seems to have received Chinese diplomatic support as well as weapons and Sudanese oil. The 2006 Chadian coup d'état attempt
2006 Chadian coup d'état attempt
The 2006 Chadian coup d'état attempt was an attempted coup d'état against Chadian President Idriss Déby that was foiled on the night of March 14, 2006.-Plot:...
failed after French Air Force
French Air Force
The French Air Force , literally Army of the Air) is the air force of the French Armed Forces. It was formed in 1909 as the Service Aéronautique, a service arm of the French Army, then was made an independent military arm in 1933...
intervention, but Déby then switched his friendship to Beijing; the field defeat became a Chinese strategic victory.
Russia
In February 2009, Russia and China signed an agreement in which a spur of the Eastern Siberia–Pacific Ocean oil pipeline to China would be built and Russia would supply China with 15 million tonnes of oil (300000 barrels (47,696.2 m³) per day) each year for 20 years, in exchange for a loan worth US$25 billion to Russian companies TransneftTransneft
Transneft is a Russian state-owned business responsible for the national oil pipelines. It was founded in 1993 and owns the largest oil pipeline system in the world, with a total network length of almost...
and Rosneft
Rosneft
Rosneft is an integrated oil company majority owned by the Government of Russia. Rosneft is headquartered in Moscow’s Balchug district near the Kremlin, across the Moskva river...
for pipeline and oilfield development.
Australia
On August 19, 2009, Chinese petroleum company PetroChinaPetroChina
PetroChina Company Limited is a Chinese oil company and is the listed arm of state-owned China National Petroleum Corporation , headquartered in Dongcheng District, Beijing. It is China's biggest oil producer, and was the world's most valuable company by market value as of September 28th 2010...
signed an AU$50 billion deal with ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
to purchase liquefied natural gas from the Gorgon field in Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
; this was believed to be the largest contract ever signed between China and Australia – ensuring China a steady supply of LPG fuel for 20 years, and comprising China's largest supply of relatively-clean energy. This agreement has been formalised despite relations between Australia and China being at their lowest point in years following the Rio Tinto espionage case
Rio Tinto espionage case
The Rio Tinto espionage case began with the arrest on 5 July 2009, of four staff in the Shanghai office of the Rio Tinto Group, in the People's Republic of China, who were subsequently accused of bribery and espionage. Two days later, an import executive of the Shougang Group and Laigang Group was...
and the granting of a visa to Rebiya Kadeer
Rebiya Kadeer
Rebiya Kadeer is a prominent Uyghur businesswoman and political activist from the northwest region of Xinjiang Autonomus Region of the People's Republic of China...
to visit Australia.
Central Asia
China has constructed an oil pipeline from KazakhstanKazakhstan-China oil pipeline
The Kazakhstan–China oil pipeline is China's first direct oil import pipeline allowing oil import from Central Asia. It runs from Kazakhstan's Caspian shore to Xinjiang in China. The pipeline is owned by the China National Petroleum Corporation and the Kazakh oil company KazMunayGas.-History:The...
and started construction of a Central Asia–China gas pipeline.
Sea lanes
Ratification of the Law of the Sea Treaty is linked to China's need to secure its oil and raw materials shipping from the Middle East, Africa, and Europe, since those materials have to pass through the Strait of MalaccaStrait of Malacca
The Strait of Malacca is a narrow, stretch of water between the Malay Peninsula and the Indonesian island of Sumatra. It is named after the Malacca Sultanate that ruled over the archipelago between 1414 to 1511.-Extent:...
and the Red Sea
Red Sea
The Red Sea is a seawater inlet of the Indian Ocean, lying between Africa and Asia. The connection to the ocean is in the south through the Bab el Mandeb strait and the Gulf of Aden. In the north, there is the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez...
.
Oil diplomacy
The appearance of China on the world energy scene is somewhat disturbing for developed nations. China's relative energy inexperience also raises diplomatic difficulties. Strengthening ties with oil producers such as IranIran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
, Sudan
Sudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...
, Uzbekistan
Uzbekistan
Uzbekistan , officially the Republic of Uzbekistan is a doubly landlocked country in Central Asia and one of the six independent Turkic states. It shares borders with Kazakhstan to the west and to the north, Kyrgyzstan and Tajikistan to the east, and Afghanistan and Turkmenistan to the south....
, Angola
Angola
Angola, officially the Republic of Angola , is a country in south-central Africa bordered by Namibia on the south, the Democratic Republic of the Congo on the north, and Zambia on the east; its west coast is on the Atlantic Ocean with Luanda as its capital city...
and Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
also raised concerns for U.S. and other Western diplomacy, since several of these countries are known to be anti-American
Anti-Americanism
The term Anti-Americanism, or Anti-American Sentiment, refers to broad opposition or hostility to the people, policies, culture or government of the United States...
and/or known for human rights
Human rights
Human rights are "commonly understood as inalienable fundamental rights to which a person is inherently entitled simply because she or he is a human being." Human rights are thus conceived as universal and egalitarian . These rights may exist as natural rights or as legal rights, in both national...
abuses, political censorship
Political censorship
Political censorship exists when a government attempts to conceal, distort, or falsify information that its citizens receive by suppressing or crowding out political news that the public might receive through news outlets. In the absence of unflattering but objective information, people will be...
, and widespread corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
. These moves seem to challenge Western powers, by strengthening anti-Western countries. But this is unlikely; as a developing consumer economy, China does not have much of a choice in its sources of supply.
Poor communication
It is claimed that Chinese oil companies are unaccustomed to political risks and avoiding diplomatic conflict. In any case, the Chinese government will still be seen as ultimately responsible for conflict resolution. Communication has also been a weak point for Chinese companies. Lack of transparency in cases such as Chinese involvement in Sudan have raised concern in the US, until it was revealed that most of the oil produced was sold on international markets. Lack of cooperation with other major oil companies has led to business clashes, spilling into the diplomatic arena when both sides call their respective governments to support their interests (CNOOC versus Chevron-Texaco for Unocal, for example).See also
- Energy policy of ChinaEnergy policy of ChinaThe energy policy of the People's Republic of China is a policy decided on by the Central Government with regard to energy and energy resources. The country is currently the world's largest emitter of greenhouse gases according to a Dutch research agency. However, China's per capita emissions are...
- Energy securityEnergy securityEnergy security is a term for an association between national security and the availability of natural resources for energy consumption. Access to cheap energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries has led...
- African oil and China (needs sources)
Sources
- CES :
- CQE :
- IEA :
External links
- IEA :
- CQE :