China’s extremely fast growing economy has made the demand and supply of energy a crucial topic. Today, China is the largest consumer of primary energy and the third largest producer.
In the years between 1978 and 2000, the Chinese economy grew by 9% while at the same time the energy demand only grew by 4%. This trend has been turned around in 2001, when growth was stable at 9%, but energy demand grew by 13% a year.
While China demanded 10% of the world energy demand in 2001, supporting these demand by 96% of domestic production, in 2007 they already accounted for 15% of the worlds energy demand, making them dependent on imports for coal, oil and gas,
due to domestic supply lower 90%.
As a result of these movements in the domestic demand and production picture of primary energies, China will have to face growing dependencies on the international energy markets, to secure sufficient energy to industry and population.
The purpose of this paper is to show the change of trade flows in China with a focus on the primary energy resource coal, oil and gas. The change of production, consumption,import and export of these as well as related topics as price and transportation
will be identified.Illustrating government involvements and economic players will complete the research
to offer a comprehensive picture.
[...]
Table of Contents
1. Introduction
2. Facts and Figures
3. Coal
3.1. Production and Consumption
3.2. Export and Imports
3.3. Reserves and Resources
3.4. Regions
3.5. Price
3.6. Transportation
4. Oil
4.1. Production and Consumption
4.2. Export and Imports
4.3. Reserves and Resources
4.4. Regions
4.5. Price
4.6. Transportation
4.6.1. Railway
4.6.2. Domestic Pipelines
4.6.3. Transnational Pipelines
4.6.4. Ship
5. Gas
5.1. Production and Consumption
5.2. Export and Imports
5.3. Reserves and Resources
5.4. Regions
5.5. Price
5.6. Transport
5.6.1. Domestic Pipelines
5.6.2. Transnational Pipelines
6. Politics
6.1. Coal
6.2. Oil
6.3. Gas
6.4. Regulations
6.5. WTO
6.6. Free Trade Agreements
6.7. Important acquisitions and cooperation’s
6.8. International Trade Conflicts
7. Companies
7.1. Sinopec
7.2. CNPC
7.3. China Shenhua Energy Company Limited
8. Conclusion
Objectives and Research Themes
This paper examines the evolution of China's energy trade flows, focusing specifically on the primary energy sources coal, oil, and gas. It analyzes how the country's rapid economic development has transitioned it from a self-sufficient energy producer to a major importer, exploring the implications of this shift for global energy markets and domestic policy.
- Analysis of China's domestic production and consumption trends for coal, oil, and gas.
- Evaluation of trade dynamics, including import/export patterns and national energy security strategies.
- Overview of the Chinese regulatory environment, market reforms, and international trade agreements.
- Examination of major state-owned energy corporations (Sinopec, CNPC, China Shenhua) and their strategic operations.
- Investigation of future demand drivers, such as population growth, industrialization, and the rising middle class.
Excerpt from the Book
3.2. Export and Imports
In 2005 approximately five billion tons of coals were produced worldwide, but only 16% percent of them were traded on international markets. The consumption of the other 84% (4.225 million tons) occurred in the producing countries themselves.
In the 1980th and the 1990th China, as the world largest producer, exported 1%-2% of their annual coal production. Towards the end of the 1990th the export rate grew and in 2001 reached 7% of the domestic production (94 million tons). By that time, China was the second largest exporter with a share of 13,5% of the total export market, behind Australia which had 192,2 tons which had a share of 28,7%. Close behind China was South Africa with 69,2 million tons (10,3%). This made China the second largest exporter of coal in the world until 2003. By 2005, China had exported 71,8 million tons and therefore had dropped down, to become the fifth largest exporter, behind Australia (231,3 mil. tons), Indonesia (108 mil. tons), Russia (75,7 mil. tons) and South Africa (73 mil. tons). The biggest trading partners which imported the coal were Japan (32%), South Korea (30%), Taiwan (23%) and India (5%). These 71,8 million tons consisted of 65,7mil tons steam coal and 6,06 million tons of coking coal.
Chapter Summary
1. Introduction: Highlights China's transition into the world's largest consumer and third-largest producer of primary energy, emphasizing the resulting dependency on imports.
2. Facts and Figures: Provides a macroeconomic overview of China's population, GDP growth, and its status as a major global trading power.
3. Coal: Discusses the dominance of coal in China's energy mix, analyzing production, price liberalization, and the shift from exporter to net importer.
4. Oil: Examines China's role as a major oil consumer, its reliance on imports, and the strategic importance of pipeline and maritime transport infrastructure.
5. Gas: Focuses on the growing importance of natural gas and LNG, detailing infrastructure expansion and current pricing mechanisms.
6. Politics: Outlines the government's energy security strategy, regulatory reforms, WTO membership, and aggressive international acquisitions.
7. Companies: Details the operations, financials, and market strategies of three major Chinese energy entities: Sinopec, CNPC, and China Shenhua.
8. Conclusion: Summarizes future challenges, noting that population growth and rising mobility will necessitate continued, assertive energy security strategies.
Keywords
Energy security, China, Coal, Oil, Natural Gas, Trade flows, Import dependency, PetroChina, Sinopec, China Shenhua, Energy policy, Infrastructure, Global energy markets, Economic growth, Pipelines.
Frequently Asked Questions
What is the primary focus of this paper?
The paper examines the changing trade flows and energy strategies of China regarding coal, oil, and natural gas in the context of its rapid economic expansion.
What are the central energy themes addressed?
The work covers domestic production, consumption trends, resource reserves, infrastructure (pipelines and shipping), and the government's approach to pricing and regulation.
What is the primary research goal?
The goal is to illustrate the transition of China from a self-sufficient energy producer to a country increasingly dependent on international energy markets to fuel its growth.
Which scientific methodology is applied?
The author utilizes an analytical approach, synthesizing empirical data, trade figures, industry reports, and company profiles to map China's energy trajectory.
What does the main body discuss?
It provides detailed sectoral analyses of coal, oil, and gas, followed by an examination of the political landscape and the corporate strategies of major national energy players.
Which keywords define this work?
Key terms include Energy Security, Trade Flows, Import Dependency, Chinese energy corporations (Sinopec, CNPC), and Five-Year Plans.
How does the government influence the energy market?
The Chinese government maintains a strong influence through price regulations, state ownership of major enterprises, the issuance of production licenses, and direct investment into foreign companies.
Why is the transportation infrastructure critical?
Given the geographical disconnect between energy-rich western regions and energy-hungry eastern cities, the development of pipelines and rail networks is vital for supply stability.
- Quote paper
- Philipp Gauß (Author), 2009, International Trade China: Coal, Oil and Gas, Munich, GRIN Verlag, https://www.grin.com/document/138061
