Research and Factors
-China is the second largest consumer of oil, just behind the United States.
-Chinas growth rate is the highest on earth and in the past decade has increased 7 fold.
-China imports half of its oil and in 3 years the figure will be 2/3.
-Chinese reserves are dwindling and if they are unable to meet this rising need for energy their economy will come to a grinding halt.
-China must find and secure new sources for oil in an increasingly unstable world.
-This has already begun to cause friction between the United States and rising economic power China. The Unites States has enjoyed dominance in the energy market for decades and cannot afford economically loose or fail to obtain new energy markets and to continue growth.
-Beijing, April 2007 the Chinese hosted the 8th technology of energy expo which all major companies in the field where in attendance. Thirty Thousand visitors from 42 separate nations from all over the world where in attendance. They included companies ranging from offshore drilling, pipelines, and next generation supertankers.
-China is now forging alliances with Sudan and Iran
-China currently cannot supply the demand for itself. This is a key reason for the need of new energy markets; markets that The United States have traditionally dominated.
-In the late 80’s there were three companies; In effect an arm of the state that were set up to give China the financial clout to be able to compete in the international oil market. They are China National Offshore Oil Corporation (CNOOC), China Pretrial Chemical Corporation, and China National Petroleum Corporation.