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China Oil Security Issue In the New Map of Global Oil Geography Essay Example

China Oil Security Issue In the New Map of Global Oil Geography

In 1993, China was importing oil from the Middle East which was about 16% but towards 1998 the country’s consumption level of oil was noted to be 61%. The increased consumption in the economy made the stakeholders to make decisions that ensure oil is abundant in China economy. In 2002, China was ranked as the second largest oil consuming economy though Japan was still a large oil-consuming economy. The level at which oil consumption was accelerating was astonishing since it indicated that annually the consumption of oil was 15% indicating that 254 tonnes were used in 2010. In 2011, China imported 56.5% of oil compared with the United States where the importation of oil decreased to 50% in the same year. This was the first time that oil importation in the United States reduced due to the weak economy and vehicles that were efficient in oil consumption. China in 2011 imported liquefied natural gas (LNG). Due to rising oil consumption and demand, Chinese oil companies have increased relational ties thereby acquiring overseas assets. Chinese NOCs in collaboration with other companies spends an approximate $47.6 billion on oil and gas assets. In the early 1990s, when NOCs had already entered the field of oil importation, NOCs was a lightweight industry which was not even able to compete with giants that already existed in oil producing basins. After a year, NOCs made a breakthrough in oil-producing which made the western nation to fear on matters relating to oil. One of the major oil security issues that were set by Chinese NOCs was acquiring a tender “block 1/2/4” that was won by China National Petroleum Corporation (CNPC) in 1996. The American oil companies were not allowed to venture in Sudan since earlier they had declared Sudan as a state that supports terrorism. Since China has signed a principle of nonintervention in Beijing, it did not intervene in Sudan domestic issues and thus China being able to pursue the business interest in Sudan (Herberg, 41). Chinese government worked along side Sudan government to make sure that terrorism will be curbed in Sudan by working as partners

preview essay on China Oil Security Issue In the New Map of Global Oil Geography
  • Pages: 14 (3500 words)
  • Document Type: Term Paper
  • Subject: Social science
  • Level: Undergraduate
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