Chinese Oil Companies "go Global" And China's Oil Security

Oil is one kind of strategic recourse, which has been related to not only economic development of a country but also stability of society, regional security and the political and military situation of the world. Oil security is an important part of energy security and economic security. The demand of China's oil has not been satisfied by domestic supply due to the rapid development of China's economy. Oil security has become a big problem facing China as import of oil increasing. In order to deal with the problem, China's oil companies go outward. The paper focuses on the relationship between China's oil security and the"going outward"strategy.First, the author analyzes the oil security facing China. After analysis of the concept of oil security, the author studies the evaluation system of oil security and analyzes the China's oil security by the indicators in the system. Then the author analyzes FDI in oil by FDI theories and draws a conclusion that"going outward"is not only to secure China's oil consumption but also to maximize profit of these companies. At last the author analyzes the relationship between"going outward"strategy and oil security. The author believes that the strategy is of significance for China to secure oil supply and to avoid fluctuation of oil price. But the strategy is not the effective method to deal with the problem that China lacks of oil pricing power.