Oil In a Week (China's Oil Consumption Increased despite Price Hikes)
Walid Khadduri Al-Hayat - 29/07/08//
Official data from China indicate that this country's oil consumption crossed the eight million barrel per day barrier last June. This reconfirms China's position as the world's second largest oil consumer after the US and ahead of Japan.
Data published by China's customs department on July 10th indicated that the country's oil and fuel imports increased during the first half of this year by 11%, totaling 3.66 million barrels a day compared with 3.31 million barrels a day for the same period a year earlier.
The data show that China's oil and fuel import bill has risen during this period by about 86% both as a result of the increasing volume of imported oils and their rising prices, totaling about $65 billion.
A few media in the West attempt to magnify the numbers and blame them for the globally mounting oil prices. In reality, China is merely securing the energy resources needed for its rapidly growing economy and for coping with its economic and social progress, which for China is a natural and basic right.
China, and of course India and Brazil, constitute new and huge markets for oil and natural gas. This prompts producing countries to intensify the development of their oil fields to meet this demand and to avoid any shortages in supplies. China, for example, imports its oil from more than 11 nations.
Data pertaining to the first half of this year indicate that China imported 675,000 barrels from Angola; 656,000 from Saudi Arabia; 433,000 from Iran; 285,000 from Oman; 252,000 from Russia; 216,000 from Sudan; 200,000 from Venezuela; 109,000 from Kazakhstan; 97,000 from Libya; 95,000 from Congo-Brazzaville, and 628,000 from other countries.
Remarkably, Sudan ranks sixth among the nations exporting oil to China. In comparison to China's oil imports and the limited volumes imported from Sudan, it becomes evident that China's reliance on Sudan's oil is very limited and is by no means close to the claims made by a few about China's oil-based relationship with Sudan.
The breakdown of Chinese sources of imports reveals that contrary to media claims, China does not depend on Sudanese oil imports in such a way that justifies its pro-Sudan positions at the Security Council.
As a matter of fact, it was Western corporations which dominated oil exploration and production in Sudan until they were forced by the Khartoum government and the missionary associations in North America to terminate their operations in Sudan because of the civil war there. Chinese oil companies seized the opportunity and replaced Western corporations. Moreover, a few private Arab companies also invested in the oil sector there.
It is well-known that Chinese oil companies carefully assess their operations to accurately identify their country's current and future oil and gas needs. They invest in exploring and developing oil and gas fields in most if not all Arab oil-exporting countries to secure their needs while commercially competing with American, European and Asian companies. Moreover, these companies enjoy a privileged position because their nation constitutes one of the world's largest oil consuming markets. Although China ranks second among oil consuming countries, it is likely to rank first in the next two decades as a result of its rising standards of living and the massive urbanization, all of which increase the consumption of electricity, gas, and other fuels.
The most revealing truth of Arab-Chinese oil cooperation is the huge agreement between Saudi Aramco, American Exxon-Mobil and Chinese Sinopec to invest in an oil refinery and petrochemicals facility in China. This is not to mention a contract awarded to Qatar Petroleum to ensure massive liquefied natural gas (LNG) supplies to the Chinese market.
*Energy Expert
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