|
Understanding the China Energy Market: Trends and Opportunities
by Barbara Drazga 15-07-2007 |
page 1 |
Article:
China's economic trajectory has driven its growing energy appetite, and it is
now the world's second largest energy consumer in the world. China will continue
to be a major player in world energy markets, but increasing energy demands pose
tremendous challenges for China's people, its environment, and its leaders,
according to a new report on China's energy industry just published by Energy
Business Reports, an energy industry think tank.
advertisement
Energy demand in China: China's energy demand has surged since the beginning
of the new millennium when a new round of investment-driven economic growth
began. China's energy sector has enormous potential, especially the coal,
petroleum and natural gas industries, yet China is currently a net importer of
oil, and imports are expected to increase to more than 900 million barrels in
2006, against a total demand of 1.993 billion barrels per year. China is looking
to expand its production of coal, natural gas, and renewable energy sources such
as nuclear, solar and hydroelectric power to meet the enormous appetite for
energy spawned by its massive industrial complex and consumer sectors.
It is estimated that in 2020, China will need 2.8 billion tons of coal and
600 million tons of crude oil, two and a half times more than in 2000. Given
this scenario, China will need to import 250 million tons of petroleum, about
70%, from foreign sources. What's more, its carbon emissions will reach 1.94
billion tons, and China will likely overtake the US as the nation with the
highest greenhouse gas emissions. Industrialization coupled with greater
consumer energy consumption has created an energy crisis in China, and symptoms
of shortage are visible throughout the country. New capital and international
technology will be required, opening the door to foreign investment and market
entry.
China opens itself up to global market forces: In recent years, China has
allowed market forces to play a larger role in its economy. Foreign investors
are being encouraged by the government to participate in exploitation of the
country's natural gas resources, energy infrastructure construction, sales of
natural gas, coal mining, gas-fired power generation and the production of
petrochemical products. Shell, Exxon Mobil and BP are jostling for positions in
China's gas market, where demand is expected to quadruple to account for 8% of
China's total energy supply by 2010. In order to tap China's growing energy
market foreign companies are making heavy investments.
Environment: China is one of the biggest polluters of the developing world
accounting for 12% of global carbon dioxide emissions. In recent years, as
concern about climate change and rising carbon dioxide emissions has grown,
China has sent confusing signals about its willingness to clean up its energy
production plant and tackle environmental pollution. China was among the 141
countries that ratified the United Nations' Kyoto Protocol on global warming,
which took effect in February 2005. The move enabled China to portray itself as
a defender of the environment while condemning the US, which withdrew from the
treaty, as irresponsible. Yet despite throwing its weight behind the Kyoto
treaty, China has few short-term solutions to satisfying growing energy demand
beyond bringing new coal-fired power pants on line. China is planning 562 new
coal-fired power stations, nearly half the worldwide total of plants expected to
come online in the years up to 2012, when the first phase of the Kyoto Protocol
ends.
Other things you'll learn from "Understanding the China Energy Market -Trends
and Opportunities":
- The effects of China's accession to the World Trade Organization
- Major players in China's energy industry in all sectors
- Market demand and supply in key sectors
- The potential of new sources of energy - solar, wind, nuclear and hydro
power
- Why transportation and infrastructure inadequacies are big problems
- How demographics influence energy use in China
- The market potential of natural gas, LNG, LPG, photovoltaics, and other
energy sources
Summary: China will inevitably have a profound impact on future global
energy markets, energy security, and environmental quality. A clearer
understanding of what is happening in Chinese energy markets is essential,
and this report explores the new energy-economic relationship that will
influence both the international community and China.
About the Publisher: "Understanding China's Energy Market" is published by
Energy Business Reports (
www.EnergyBusinessReports.com ), an energy industry think tank and leading
source for energy industry information and research products. Other reports
available from EBR include: Weather Risk Management, Fuel Cells Market and
Trends, Natural Gas Storage Effects on Energy Trading, and Unconventional Gas
Outlook. This report can be ordered at
www.ChinaEnergyTrends.com
|
