Since the 1970s, America’s main energy security threat has been OPEC, (Organization of Petroleum Exporting Countries). P. R. China is well under way to position itself as the next major global energy market threat.
Though the US is producing abundantly more oil and natural gas domestically and was a net exporter of petroleum products in 2011, China has taken a keen interest in the development and investment in US energy assets.
Energy companies within Oklahoma and throughout the US have partnered with China companies. Is that good or bad? Yes.
The influx of foreign investment in our natural resources is a mixed blessing. On the one hand, it has provided cash infusion for some of our US energy companies. On the other hand, foreign ownership in US company assets could present an energy security threat in the future.
China has been spending billions of dollars to acquire interests in US energy companies. It is dramatically increasing its investment in the US.
China’s energy card is being used to position itself as a major investor in all continents throughout the world.
China is focusing in on natural gas development. The manufacturing of LNG tankers is becoming a focus of China.
Demand for oil continues at a rapid pace. China’s electricity consumption is projected to nearly triple over the next decade, growing to an average of over 4 percent per year.
I have seen first-hand from my first business trip to P.R. China in 1994 to my last business trip in 2006 how tremendous economic development has occurred and is continuing to occur. The demand for energy that P. R. China will need in the years ahead is staggering.
China has closed in on the US when it comes to buying oil from the Middle East. So both countries, the US and China, are showing strong interest in the Middle East region with their military presence.
The US, for many years, has served as the energy security “police” of the Middle East region, making sure that all ports remained open for business. There is now the potential for additional tension build-up in the region.
The front cover of The Journal of International Security Affairs, Fall/Winter 2013 sums it up best, “China’s Rise…And Why We Should Worry”.
On top of all this, recently, Russia and P. R. China are teaming up. Russia agreed to supply China with more oil and will develop an oil refinery together.
The good news is that America is becoming less and less dependent on foreign oil especially from the Middle East region.
It is extremely important that the US be in a strong position of securing energy reserves within its own boundaries. Therefore, we need a plan. The US needs energy security. America Needs America’s Energy!
Together we can create the People’s Energy Plan! Go to www.peoplesenergyplan.com to join the effort. Facebook: America Needs America’s Energy with over 9000 supporters plus and growing. — America Needs America’s Energy: Creating Together the People’s Energy Plan!