Unraveling the Chinese Oil Puzzle
AbstractAs oil prices rose in 2004, a large part of the blame was laid at the feet of the emerging colossus of the East. Newspaper stories wrote of the, “surging,” and, “insatiable demand,” coming from China, describing it as the, “engine of oil demand growth,”1 and explaining the change, "More than a billion Chinese are joining the oil market…. How can prices go down?”2 There were moderately dissenting voices, e.g., from a professional at the International Energy Agency, "It is neither fair nor accurate to blame China for most of the rise in oil prices.3 The measured increases in China’s international oil imports are based on international data and are quite real and not related to the probable overestimates of China’s overall rate of economic expansion. The very high growth rates of Chinese oil imports in 2004 and previous years are shown in Table 1. The implied growth rates are so high as to be almost unbelievable. From the fourth quarter of 2003 to the third quarter of 2004, there was a 30 per cent increase in crude oil imports. Such a high growth rate is not the way economies, in general, actually behave or, in particular, the manner in which the Chinese economy has functioned in the past, even in the course of its remarkable expansion. Yet the growth is real, so how can it be explained? That is the puzzle!
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research in its series Working Papers with number 0422.
Date of creation: Dec 2004
Date of revision:
Contact details of provider:
Postal: 77 Massachusetts Ave. (Building E40-279), Cambridge, MA 02139-4307
Phone: (617) 253-3551
Fax: (617) 253-9845
Web page: http://tisiphone.mit.edu/RePEc
More information through EDIRC
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sharmila Ganguly) The email address of this maintainer does not seem to be valid anymore. Please ask Sharmila Ganguly to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.