Energizing The Dragon Evolution Of China's Energy Demand And Challenges For Energy Security Policy

The spectacular rise of China created tremendous shifts on the global economic and political arena. In order to be able to fuel its double-digit economic growth, China needs ever-increasing amounts of all types of resources and energy supplies. According to the IEA's estimates, China's energy demand is likely to double from the current levels by the year 2030. In order to insure sustainable economic development and social stability, China needs to address the widening gap between energy resources' demand and supply. From being energy self-sufficient just fifteen years ago, China has currently become the world's second largest oil importer and the proportion of energy imports is set to dramatically increase in the years to come.In order to avoid energy shortages at home and minimize dependence on rather unpredictable world energy markets, the Chinese national oil companies have been investing into energy equity stakes all around the globe. However, this heightened profile of China's energy firms has been facing resistance and protectionist policies from the western governments and oil companies, and more international dialogue and cooperation will be needed to create a more stable global energy supply environment. Energy security is no longer just an issue of domestic economic policy, but rather that of strategic implications for the country's national security and global competitiveness.Focusing solely on increasing supplies is not likely to solve China's energy problems, and corresponding demand-side efficiency and conservations measures, as well as further market-oriented reforms need to be implemented. In the longer term, structural shifts towards a less energy-intensive development model need to be worked out. In order to minimize its dependence on energy imports and create a cleaner environment, China has been investing heavily into development of alternative and renewable energy sources and is swiftly becoming a world leader in wind and solar energy.As most things in China, developments in the energy sector are very swift and continued attention and analysis should be given to the changes and shifts in policies as they occur. It is no exaggeration to say that the world's energy and environmental future will be decided to a great extent by the decisions made in Beijing today and tomorrow.