NATIONAL ENERGY SECURITY AND SINO-RUSSIAN-KAZAKH-JAPAN ENERGY COOPERATION

Abstract

 OVer the last decade, the oil demand on the Chinese market has been growing at a vigorous rate, and oil imports have continued to rise on an annual basis. In 2003, with its oil imports exceeding those of Japan, China emerged as the world’s second largest oil-importing country behind the United States. Today, imports make up 35% of the total amount of oil consumed in China. In the current composition of China’s oil imports, the Middle East accounts for about 50%, Africa for 25%, the Asia-Pacific Region for 15%, and Central Asia and Russia together for about 10%, thus constituting more than 90% of the country’s crude oil imports delivered via sea transport corridors. During the first half of 2006, China’s crude oil output reached 91.66 million  tonnes, an increase of 2.1% over the previous period. And oil imports reached 82.36 million tonnes, an increase of 21.3% over the previous period. It should be added that 70.33 million tonnes of these imports were crude oil, constituting an increase of 17.6%, while the import of petroleum products reached 12.03 million tonnes, i.e. an increase of 48.3%. Thus, China’s oil dependence increased to reach 47.3% in the first half year. It is estimated that by 2020, the oil shortage in China will amount to 50-60%, and this deficit will largely have to be compensated by relying on oil imports.

The factors influencing the import and export of oil are becoming increasingly complicated, so much so that oil import is no longer merely  tonnes, an increase of 2.1% over the previous period. And oil imports reached 82.36 million tonnes, an increase of 21.3% over the previous period. It should be added that 70.33 million tonnes of these imports were crude oil, constituting an increase of 17.6%, while the import of petroleum products reached 12.03 million tonnes, i.e. an increase of 48.3%. Thus, China’s oil dependence increased to reach 47.3% in the first half year. It is estimated that by 2020, the oil shortage in China will amount to 50-60%, and this deficit will largely have to be compensated by relying on oil imports.

The factors influencing the import and export of oil are becoming increasingly complicated, so much so that oil import is no longer merely  tonnes, an increase of 2.1% over the previous period. And oil imports reached 82.36 million tonnes, an increase of 21.3% over the previous period. It should be added that 70.33 million tonnes of these imports were crude oil, constituting an increase of 17.6%, while the import of petroleum products reached 12.03 million tonnes, i.e. an increase of 48.3%. Thus, China’s oil dependence increased to reach 47.3% in the first half year. It is estimated that by 2020, the oil shortage in China will amount to 50-60%, and this deficit will largely have to be compensated by relying on oil imports.

The factors influencing the import and export of oil are becoming increasingly complicated, so much so that oil import is no longer merely  a trade issue, but has become embroiled in politics, diplomacy, and many other issues. World oil trade is largely complicated by the fact that oil energy has become a major resource, the scarcity of which could jeopardize a nation’s economic security. More energy reserves mean more staying power for economic growth and greater guarantee of economic security. The worldwide geographical distribution of oil resources means that, in terms of oil demand, most countries and regions are in rivalry with each other. Most countries in need of oil are taking steps to maximize oil imports. As world competition intensifies, international disputes on energy trade will focus on limiting oil exports rather than oil imports.

In order to enhance the situation, National Energy Security Guarantees have been drawn up aimed at accelerating globalization of the energy industry and making the utilization of foreign oil resources a priority. The uneven geographical distribution of oil resources means that oil exploration, development, and sales must be raised to a global level. From the national viewpoint, oil is a strategic material that is indispensable in some cases, and under these circumstances its value cannot be measured in monetary terms. The practice of drilling oil overseas and selling it on the overseas market indisputably affects how countries manage their economies and contributes to drawing up international strategy for the oil industry. China must further improve its management of oil imports and exports and find a more convenient way to import oil from overseas. Seeking new partners for energy development should be urgently placed on the country’s agenda in order to meet strategic needs. While continuing to expand oil trade with the Middle East, it is imperative for China to strengthen economic cooperation with Russia and other oil-producing countries in the Caspian Sea, Central Asia, Southeast Asia, and Latin America, as well as reduce the risks by maximizing the geographical distribution of oil import sources,1 while carrying out a strategy aimed at diversifying energy supplies China is setting its sights on Russia and the Central Asian states, which are functioning as energy suppliers for the countries contiguous to them .