China Regards U.S. Energy Independence As A National Security Threat

Fuel Fix: China keeping an eye on surging U.S. oil and gas production

WASHINGTON — The United States’ energy renaissance is catching attention in Beijing, where Chinese leaders view the phenomenon as “a double-edged sword,” according to a white paper from the free-market group American Council for Capital Formation.

“China trusted the United States more when U.S. oil import dependency was higher and Washington actively sought increases in global oil production, a mutually shared objective,” writes George David Banks, executive vice president of the group. “In Beijing’s view, the U.S. shale revolution has increased U.S. immunity to a reduction in global supply resulting from military conflict, political instability, or international sanctions, thereby making Washington a less reliable partner in managing the world’s energy markets.”

But the recent surge in U.S. oil and gas production offers an opportunity for the two countries to work together, Banks writes, arguing that the collaboration (along with U.S. energy exports) could ease tensions in the South China Sea and spur stability in the Asia Pacific.

WNU Editor: Energy has always been a problem for China. When I was working in China in the mid 1980s, I asked for a generator because the electricity was always going on and off. And while the Chinese electrical grid is functioning better today .... energy is China's Achilles Heel. It also explains why the Chinese are being "hard-nose" about the South China Sea .... it is for the energy resources that may lie beneath the sea-bed, and also a means to control of the flow and transport of energy resources in Asia.

China's Strategic Planning Is Focused On Getting Oil

China's Changing Oil Calculus -- Rosemary A. Kelanic, National Journal

Last month, China and Russia announced an $85 billion equity deal to jointly develop Russia’s east Siberian oil resources for export to China in an unprecedented agreement between the two countries.

This comes on the heels of Chinese president Xi Jinping’s tour of Central Asia to forge closer trade ties with Kazakhstan, Uzbekistan, Turkmenistan and Kyrgyzstan. Promoting a “New Silk Road” of regional commerce, he spoke illustriously of “camel bells echoing in the mountains” and “wisps of smoke rising in the desert” as in the days of yore.

Although much less romantic, “Hydrocarbon Highway” more aptly describes Xi’s vision. In recent weeks, China has signed nearly $100 billion in energy contracts to increase Chinese access to the abundant petroleum resources of Central Asia. A major advantage of obtaining oil from Siberia and Central Asia is that it could travel to China overland—and thus beyond the reach of U.S. naval power.

Read more ....

My Comment: Energy is China's Achilles heel .... .... and the Chinese military/government are well aware of that. But with one billion Chinese citizens using more energy every year continues .... this "weakness" will only grow.