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Why Are the Stakes So High? Misconceptions and Misunderstandings in China’s Global Quest for Energy Security

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  • Zhang, ZhongXiang

Abstract

China’s global quest for resources, in particular oil and natural gas, has received unprecedented worldwide attention and scrutiny. This is partly because of China’s own high-profile, active energy diplomacy, its national oil companies’ acquisitions in the key exporting regions of oil and natural gas and some debatable issues about the management and operation of these companies. But why the stakes are raised unnecessarily high is mainly because of the growing politicization of Chinese energy security as a result of misconceptions and misunderstandings of China’s quest for energy security both inside and outside China. This paper aims to de-politicize the debate on China’s global quest for energy resources and to put discussions on that issue into perspective. To that end, the paper first categorizes the main features of China’s energy mix and discusses why energy security in China equates to a large extent to oil security. The paper then pays special attention to misconceptions and misunderstandings regarding the hypothesized U.S.-led oil blockade against China; the Chinese policy banks and their oil and natural gas-based loans; and the role of Chinese investments in oil and gas fields overseas in discussions on China’s global quest for energy resources. Finally, the paper ends with some concluding remarks on a more constructive way forward.

Suggested Citation

  • Zhang, ZhongXiang, 2012. "Why Are the Stakes So High? Misconceptions and Misunderstandings in China’s Global Quest for Energy Security," Energy: Resources and Markets 130548, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemer:130548
    DOI: 10.22004/ag.econ.130548
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    References listed on IDEAS

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    1. Zhongxiang Zhang, 2007. "China's Hunt for Oil in Africa in Perspective," Energy & Environment, , vol. 18(1), pages 87-92, January.
    2. ZhongXiang Zhang, 2011. "Assessing China’s carbon intensity pledge for 2020: stringency and credibility issues and their implications," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 13(3), pages 219-235, September.
    3. ZhongXiang Zhang, 1998. "The Economics of Energy Policy in China," Books, Edward Elgar Publishing, number 1291.
    4. Zhang, ZhongXiang, 2010. "China in the transition to a low-carbon economy," Energy Policy, Elsevier, vol. 38(11), pages 6638-6653, November.
    5. Julie Jiang & Jonathan Sinton, 2011. "Overseas Investments by Chinese National Oil Companies: Assessing the Drivers and Impacts," IEA Energy Papers 2011/3, OECD Publishing.
    6. Zhang, ZhongXiang, 2011. "China's energy security, the Malacca dilemma and responses," Energy Policy, Elsevier, vol. 39(12), pages 7612-7615.
    7. ZhongXiang Zhang, 2011. "Energy and Environmental Policy in China," Books, Edward Elgar Publishing, number 13559.
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    Cited by:

    1. Schuelke-Leech, Beth-Anne, 2018. "A model for understanding the orders of magnitude of disruptive technologies," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 261-274.
    2. Zhu, Lei & Zhang, ZhongXiang & Fan, Ying, 2015. "Overseas oil investment projects under uncertainty: How to make informed decisions?," Journal of Policy Modeling, Elsevier, vol. 37(5), pages 742-762.
    3. Guo, Yue & Yang, Yu & Wang, Chang, 2021. "Global energy networks: Geographies of mergers and acquisitions of worldwide oil companies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).

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    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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