As China, U.S. Vie for More Oil, Diplomatic Friction May Follow

Think of next week’s meeting between President Bush and China’s President Hu Jintao as a summit of the planet’s most voracious energy user and the planet’s fastest-growing energy user. In a world of limited oil resources, that could strain U.S.-China relations as much as any issue.

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“Saudi Arabia is taking a Chinese wife,” said Charles W. Freeman Jr., a former U.S. ambassador to Saudi Arabia who has extensive diplomatic experience in China. “The Saudis are not divorcing us. In Islam you can have more than one wife and they can manage that.”

But can the United States?

The dynamics are sobering. Over the next 15 years, the number of automobiles in China is expected to increase fivefold, helping to double China’s overall demand for oil, which has already passed Japan’s to become the second-largest in the world. By 2020, China is expected to import 70 percent of its oil needs, compared with 40 percent today.

Meanwhile, the growth in U.S. oil consumption, starting from a higher base, rivals China’s growth when measured in barrels a day instead of percentages. From 1995 to 2004, U.S. oil imports grew by 3.9 million barrels a day while China’s grew by 2.8 million barrels a day, thus “making the United States much more of a rogue element than China in the world oil market over the past decade,” Herberg and Lieberthal wrote.

During 15 years, China’s coal demand could also double. China, which has nine nuclear plants running now, will build more plants (30 according to Freeman) than any other nation over that time period. And it has drawn up plans for giant hydropower dams. “The trajectory they’re on is not sustainable,” said Herberg, former director of strategic planning at the Atlantic Richfield Co.

Washington Post