China's True Economic Achilles' Heel? Oil Dependency -- World Crunch
Concerns grow in Beijing, especially as the American boom in shale-gas production is helping the U.S. move toward energy independence.
BEIJING — The United States is expected to bypass Russia next year to become the world’s largest non-OPEC crude oil producing country, according to a recent report by the U.S. Energy Information Administration. Another report pointed out that the difference between daily oil consumption and production in the U.S. has shrunk to 624 barrels in September. That same figure is 630 for China, making it now the world’s biggest net crude oil importer.
China’s oil import dependency has risen from 32% at the beginning of this century to 57% last year. In the past few years, Chinese car ownership has exploded while China’s oil production has grown only slightly.
A few days ago, China’s National Energy Administration incorporated shale gas for the first time as a strategic and emerging industry. The Chinese government is expected to increase financial support to this industry by reducing fees and royalties and adding new tax breaks to shale gas mining firms.
“There’s no doubt China’s oil import dependency is increasing,” a Chinese energy expert says. “It’s only a matter of time that this will reach 60% or even higher.”
Read more ....
My Comment: I have been going to China regularly since the mid 1980s .... and energy has always been their number one issue. They are definitely addicted to energy, and as their economy grows and expectations rise .... energy demands and needs increase correspondingly. But in the event of an oil shock and a massive price increase .... it will be panic time in Beijing.
5 comments:
The Chinese government is expected to increase financial support to this industry by reducing fees and royalties and adding new tax breaks to shale gas mining firms.
I have been going to China regularly since the mid 1980s & energy has always been their number one issue. They are definitely addicted to energy, and as their economy grows and expectations rise energy demands and needs increase correspondingly. But in the event of an oil shock and a massive price increase it will be panic time in Beijing.
I have been going to China regularly since the mid 1980s .... and energy has always been their number one issue. They are definitely addicted to energy, and as their economy grows and expectations rise .... energy demands and needs increase correspondingly. But in the event of an oil shock and a massive price increase .... it will be panic time in Beijing.
“There’s no doubt China’s oil import dependency is increasing,” a Chinese energy expert says. “It’s only a matter of time that this will reach 60% or even higher.”
China’s oil import dependency has risen from 32% at the beginning of this century to 57% last year. In the past few years, Chinese car ownership has exploded while China’s oil production has grown only slightly.
I have been going to China regularly since the mid 1980s & energy has always been their number one issue. They are definitely addicted to energy, and as their economy grows and expectations rise energy demands and needs increase correspondingly. But in the event of an oil shock and a massive price increase it will be panic time in Beijing.
Post a Comment