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China
Assignment 2
Zachary Laurent & Kathryn Ashbay
China Oil Consumption/Production
In 2013 according to statistics from the U.S. Energy
Information Administration (EIA), China consumed
approximately 10.7 million barrels of crude oil per day.
According to the CIA World Factbook, in 2013 China
produced approximately 4.197 million barrels of crude oil
per day.
China Gas Consumption/Production
According to the CIA World Factbook China consumed
approximately 150 billion cubic meters of natural gas in
2013.
Also according to the CIA World Factbook, in 2013 China
produced approximately 117.1 billion cubic meters of
natural das.
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China Oil Imports
1:
2:
3:
4:
5:
6:
7:
Saudi Arabia (19%)
Angola (14%)
Oman (9%)
Russia (9%)
Iraq (8%)
Iran (8%)
Venezuela (6%)
8:
9:
10:
11:
12:
14:
UAE (4%)
Kazakhstan(4%)
Kuwait (4%)
Brazil(2%)
Congo(2%)
Others (12%)
China Natural Gas Imports
Taken from SPE 2014
More than half of China’s total natural gas
imports are supplied by Turkmenistan.
Taken from US EIA 2012 records
1:
Qatar(34%)
2:
Australia(24%)
3:
Indonesia(16%)
4:
Malaysia(13%)
5:
Yemen(4%)
6:
Russia(3%)
7:
Egypt(2%)
8:
Nigeria(2%)
9:
Trinidad(1%)
10:
Others(1%)
Important Pipelines
1:
Kazakhstan-China Oil Pipeline
2:
Central Asia Natural Gas Pipeline
3:
East Siberian Oil Pipeline
4:
2 West-East Gas Pipelines
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Future Pipelines
1:
Kazakhstan: A new pipeline is being discussed that
would connect the Caspian Sea to China. This pipeline
would run parallel to China’s trans-national pipeline
developed by the Sino-Kazakh Pipeline Company.
2:
Russia: The Power of Siberia pipeline to be
constructed by Gazprom under a $400 billion gas supply
deal.
Future Pipelines Cont.
3: Myanmar: A pipeline through Myanmar is intended to act
as an alternative route for Middle Eastern crude oil. The
pipeline bypasses the Strait of Malacca through which
about 80% of China’s oil imports travel.
4: A third West-East gas pipeline is under construction.
Known as WEPP 3 it will connect to the Central Asia-China
Gas Pipeline.
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Import Diversification
Oil diversification: Turkmenistan limits their
investments from international companies,
however, China has a production sharing
agreement with Turkmenistan. They have a
reserve of 700 million bbl of crude oil.
Import Diversification Cont.
Gas diversification:
●  Russia signed a $400 Billion dollar deal with China to deliver 38 billion
cubic meters of gas through Power of Siberia pipeline. Once built, it will
account for almost 17% of China’s gas consumption by 2020.
●  The South Caucasus Pipeline follows the route of the Baku-Tbilisi-Ceyhan
crude oil pipeline through Azerbaijan and Georgia to Turkey. There it is
linked to the Turkish gas distribution system where will distribute to the
European Union.
Negotiating Powers
Investment: China has the power to aggressively invest in
foreign energy sources. This includes the development of
oil and gas reserves as well as investment in pipelines.
Through a state centered approach China is also able to
deepen political and commercial relationships directly, as
opposed to interacting through third party private investors.
Through investment China can also strike deals. In return
for Chinese investment the exporter in question may agree
to export a certain percent of their oil to China in the future.
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Negotiating Powers Cont.
Ethical Boundaries: China enjoys a significant advatage
as a trading partner to developing countries when
compared to the west. While the EU and the US demand
democratization and modernization in return for their
investment, China applies no such restrictions. This lack of
ethical strings makes China a very attractive partner to nondemocratic regimes.
Bibliography
Daiss, Tim. "Russian Energy Dispute: Could Gazprom's $400Bn Gas Pipeline to China Be Postponed?" Breaking Energy.
March 24, 2015. Accessed March 25, 2015.
http://breakingenergy.com/2015/03/24/russian-energy-dispute-could-gazproms-400bn-gas-pipeline-to-china-bepostponed/.
Henni, Abdelghani. "Gas for Cash: The Future of Turkmenistan." Society of Petroleum Engineers. November 11, 2014.
Accessed March 25, 2015. http://www.spe.org/news/article/Turkmenistan-Gas-for-Cash.
"PetroChina Lets Compression Continue for WEPP 3 Line." Oil&Gas Journal. January 17, 2013. Accessed March 25, 2015.
http://www.ogj.com/articles/2013/01/petrochina-lets-compression-contract-for-wepp-3.html.
"The Pipelines Feeding China's Burgeoning Economy." Pipelines International. March 1, 2011. Accessed March 25, 2015.
http://pipelinesinternational.com/news/the_pipelines_feeding_chinas_burgeoning_economy/055358/.
Smith, Christopher. "China Starts Construction on Third West-East Gas Pipeline." Oil&Gas Journal. October 23, 2012.
Accessed March 25, 2015.
http://www.ogj.com/articles/2012/10/china-starts-construction-on-third-west-east-gas-pipeline.html.
"South Caucasus Pipeline." BP Global. Continually updated. Accessed March 25, 2015.
http://www.bp.com/en_az/caspian/operationsprojects/pipelines/SCP.html.
"U.S. Energy Information Administration." Independent Statistics & Analysis. February 4, 2014. Accessed March 25, 2015.
http://www.eia.gov/countries/cab.cfm?fips=ch#note.
The World Factbook. China: Central Intelligence Agency. Continually updated.
https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html.
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