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Showing posts from March, 2014

China's Changing Oil Strategy and its Foreign Policy Implications

Amidst the many uncertainties looming over China's future political and economic circumstances, one thing is evident: whatever the pace of economic development may be, China must address its rapidly growing demand for natural energy and resources. Oil will be at the top of this list. Though China's energy mix will continue to be based on coal, with oil accounting for only about 20-25% of its overall primary energy consumption, the supply of this strategic fuel will remain of critical importance to China's security. Beyond the obvious reasons for its importance, two factors should be mentioned. First, oil will be the only possible primary fuel for some time to come that will be able to satisfy the soaring demand of Chinese transportation and industry—the most rapidly growing sector of energy demand for all developing economies. Second, due to financial, ecological and technological limitations, more advanced processes of energy production (such as hydro and nuclear p