In lieu of an abstract, here is a brief excerpt of the content:

19 the national bureau of asian research nbr special report #47 | november 2014 MIKKAL E. HERBERG is a Senior Lecturer in the Graduate School of International Relations and Pacific Studies at the University of California–San Diego and Research Director of the Energy Security Program at the National Bureau of Asian Research. He can be reached at . China’s Search for Oil and Gas Security: Prospects and Implications Mikkal E. Herberg EXECUTIVE SUMMARY This essay explores China’s impact on global markets for oil and gas and highlights implications for policy and industry. MAIN ARGUMENT China’s transformation into an energy superpower means that its strategies and goals now have far-reaching implications. The rapid growth in Chinese energy demand has long had major impacts on world oil markets and prices. But more recently, the country’s enormous drive to expand natural gas use has begun to have added important regional and even global impacts on gas and LNG markets. The continuing quest for energy security is thus accelerating China’s emergence as a regional and global power. Decisions by Beijing influence not only the country’s domestic trajectory but regional and global outlooks for energy supply availability, environmental security, and geopolitics. These trends are adding complexity to what is already a highly interconnected global picture for energy and environmental security. They are increasing the importance of China’s strategic and economic relationships with its neighbors and major producer countries as it seeks to promote supply security and as other powers seek to adapt to China’s global rise as a crucial strategic and economic player. POLICY IMPLICATIONS • Almost all of China’s incremental oil consumption will need to be imported, and such growth will inevitably drive China to enlarge its presence abroad. Ultimately, this will further accelerate the country’s emergence as a regional and global power, yet also intensify its diplomatic dilemmas and challenges. • China’s growing dependence on maritime oil supplies will be an additional “multiplier” in animating Chinese leaders’ interests in territorial claims in the South and East China Seas. It will also increase attention to questions related to the control of Asia’s vital energy sea lanes. These issues are already highly contentious, and the heightened focus on them will bring with it new questions for policymakers across the Asia-Pacific. • China is on target to raise its domestic gas consumption enormously, but this will mean depending on imports for roughly one-half of its gas needs. This trend is driving China to rapidly expand its energy reach across Central Asia and increasingly to Russia through large pipeline deals that will link China to these suppliers for the long term. Hence, gas is also driving China’s growing regional power and influence. 21 CHINA’S SEARCH FOR OIL AND GAS SECURITY u HERBERG C hina’s historic transition from a small player in global energy markets to an energy superpower means that its strategies and goals now have far-reaching implications. The rapid growth in Chinese energy demand has long had major impacts on world oil markets and prices. But more recently, the country’s enormous drive to expand natural gas use has begun to have important regional and even global impacts on gas and liquefied natural gas (LNG) markets. As China’s global footprint in oil and gas markets continues to expand, decisions by Chinese policymakers influence not only the country’s domestic trajectory but regional and global outlooks for energy supply availability, environmental security, and geopolitics. These trends are adding complexity to what is already a highly interconnected global picture for energy and environmental security. They are also increasing the importance of China’s strategic and economic relationships with its neighbors and major producer countries as it seeks to promote supply security and as other powers seek to adapt to China’s global rise as a crucial strategic and economic player. With these issues in mind, this essay explores China’s impact on global markets for oil and gas and highlights implications for policy and industry. Section one briefly examines the similarities and differences in China’s impact on these two different fuel markets. Section two then examines China’s oil prospects, highlighting expectations for continued demand growth and drawing implications for Chinese and international strategic and energy interests. Next, section three examines the increasingly important role of natural gas in China’s energy security calculus and discusses the implications for regional and global gas markets and prices, as well as for China...

pdf

Additional Information

ISBN
9781939131362
Related ISBN
9781939131362
MARC Record
OCLC
903314494
Pages
76
Launched on MUSE
2015-02-12
Language
English
Open Access
No
Back To Top

This website uses cookies to ensure you get the best experience on our website. Without cookies your experience may not be seamless.