The Red Dragon's thirst for oil grows

While the United States continues its moratorium policy of locking up 85 percent of its natural resources from exploration and development, the Red Dragon is continuing her desperate quest for oil, locking up every oil deal it can get hold of.

China is now “Big Oil,” knowing full well the world economic downturn provides economic opportunity. China is investing heavily to secure oil and natural gas concessions for their growing economy, which is growing at the rate of 2 percent in a time the world is in an economic recession.
The Red Dragon’s oil demand has grown from 4.8 million barrels of oil per day in 2000 to 8 million barrels today, a whopping 67 percent growth.

In comparison, the U.S. growth for that same period is basically flat. China imports 50 percent of its crude oil demand. Growth in Chinese oil consumption has accelerated mainly because of a large-scale transition away from bicycles and mass transit toward private automobiles.

It is estimated that by year 2010 China will have 90 times more cars than in 1990. With automobile numbers growing at 19 percent a year, projections show that China could surpass the total number of cars in the U.S. by 2030.

With China’s crude oil demand growing at 20 percent a year, there is great concern over the growing dependence on outside sources for energy. China knows for her economy to continue as the world’s new industrial giant, she must secure oil reserves for the future. China is also aware of the economic reality of taking advantage of today’s economic crisis.

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