Oil. China and Oil in the Asian Pacific Region: Rising Demand for Oil

Authors

Pablo Bustelo, Elcano Royal Institute

Abstract

China’s growing demand for oil is significantly changing the international geopolitics of energy, especially in the Asian Pacific region. The recent growth in oil consumption, combined with forecasts of increased oil imports (especially from the Middle East), have led to deep concern among Chinese leaders regarding their country’s energy security. They are responding in a number of different ways. In particular, they are searching for new sources of supply and seeking to control purchases and transport lanes, while boosting national production at any cost. This is already causing tension with the United States and other big oil consumers, such as Japan and India, as well as with other Asian Pacific countries. Enhanced cooperation among the big East Asian economies (China, Japan, and South Korea), however, is also a possibility. This document presents an overview of China’s energy sector, emphasising the strong growth in its energy demand to date and its potential for future growth. Secondly, we look at the oil sector, highlighting China’s growing dependence on imports. The third part deals with the Chinese perception of energy security in the oil sector. Finally, the fourth part focuses on the geopolitical implications for the Asian Pacific region of China’s search for oil.

Recommended Citation

Bustelo, Pablo (2007) "Oil. China and Oil in the Asian Pacific Region: Rising Demand for Oil," New England Journal of Public Policy: Vol. 21: Iss. 2, Article 16.
Available at: https://scholarworks.umb.edu/nejpp/vol21/iss2/16