Implications of China's Growing Demand for Oil: A Case Study in Venezuela
Abstract
China's economic rise has been coupled with a growing need to find reliable foreign energy sources. China is the world's second largest oil consumer. China's demand for oil is outpacing previous estimates and accounted for 38 percent of the world's increased demand in 2006. Venezuela is the sixth largest oil producer and is now providing oil to China as a way to diversify exports away from the United States. As China's demand increases and global oil production wanes, China will become major a competitor for oil supplies against the United States. To compete for oil China will need strategic allies, and it has found a willing partner in Venezuela. The solution to the looming problem of increasing oil demand and decreasing supplies is a new approach to international oil markets that removes politics from the sale of oil. A multilateral effort led by Japan has the greatest likelihood of success in a world that is becoming increasingly competitive over resources. Creating a framework that promotes cooperation before supply becomes limited is very important for success. If the three largest importers -- the United States, Japan, and China -- all work together, the likelihood of future war or severe economic shock over oil competition among the great powers will be diminished.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 2007
- Accession Number
- ADA476048
Entities
People
- Keith A. Peterson
Organizations
- Naval Postgraduate School