| China has 1.3 billion people living within its borders | | | | citizens….China steps in to buy the oil and |
| and an economy growing at over 10% per year. | | | | vice versa in countless countries around the world. |
| For energy consumption to keep pace with | | | | Until recently, Chinese companies seemed most |
| economic growth China will have to harness | | | | comfortable operating in locations not dominated |
| every fuel source available including renewable | | | | by the major oil companies often owned by UK |
| energy and nuclear power. There is not enough | | | | or USA companies. This means that countries like |
| gas and oil in the world to satisfy China, not with | | | | Angola and Iran have partnerships and joint |
| it's neighbour India with 1 billion people also having | | | | ventures with the Chinese. |
| a huge demand for the same resources. An | | | | For example, over half of Chinese overseas oil |
| increase in the rise in personal car ownership alone | | | | production currently comes from Sudan. In 2005 |
| could mean an extra billion cars on the road | | | | the Chinese wanted to buy a USA oil company |
| worldwide within the next 10 years. The majority | | | | but congress blocked this on the basis that |
| of these will be in China and India. | | | | national energy security was at stake. There is a |
| While the West is considered developed and is | | | | little irony in that USA companies expect to buy |
| growing slowly, the Chinese economy is still | | | | energy companies all over the word, but if a key |
| growing fast and is expanding the range of | | | | competitor wants to buy one of theirs and is |
| products and services that it offers to the West. | | | | even offering a higher price then the deal is |
| Some of these products that are manufactured | | | | blocked. |
| such as plastics and chemicals will require even | | | | Nobody can argue that China now plays a key |
| more oil. As the Chinese economy expands then | | | | role in the supply and demand of many global |
| so will the demand. As people move from urban | | | | commodity markets including steel, cement, and |
| to rural areas, the use and availability of electricity | | | | oil. This need for resources combined with the |
| and gas in the home will also increase causing | | | | bags of cash from its economic growth means |
| further strain on its reserves. | | | | that China can afford to buy any oil field and |
| This growing economy needs the energy to drive | | | | rights anywhere in the world. A position that only |
| this growth, there is only a limited amount of | | | | the USA held in the past. |
| fossil fuels in the world and the oil and gas will not | | | | Some argue that the allied forces only went to |
| last for ever. This is leading to increasing | | | | war in Iraq to get their hands on the oil, time will |
| competing demands for a countires resources, be | | | | tell if this true as oil production is currently lower |
| that in Latin America or Africa. It also means that | | | | than when Saddam was in power due to |
| everybody buys oil from countries that have | | | | sabotage and security problems. Will the next war |
| appaliing human rights issues. If America stops | | | | have oil as its stated aim and not Weapons of |
| buying oil from Sudan because it is persecuting its | | | | Mass Destruction? |