CHINA, NATIONAL, ENERGY, Commentary: U.S. And China Have a Similar Problem: An Addiction to Other People’s Oil.
By Ding Xiaoyue
President George W. Bush recently said that the United States must reduce its dependence on foreign oil. To avoid the oil problem ultimately turning into a tougher national security issue, and also achieve the transformation of U.S. energy conditions, Bush propounded a future substitute energy plan that included the development of multi-power batteries, solar power, and bio-energies.
The reasons why Bush proposed the plan consist of three aspects. In the short term, the plan might serve Republican candidates well for the mid-term Congressional elections coming in November. It is necessary for President Bush to define the position of the administration on the energy problem and establish the image of a "green president" to gain public support, and help the Republicans retain their majority in both houses of Congress.
From the long term perspective, it indicates the deep concern the U.S. has over its energy problem. The threat the U.S. has faced for decades comes from international politics and economy. For instance, the two oil crises in the mid-seventies and early eighties of the last century had a severe impact on the U.S. economy. In recent years, global oil prices have continued rising, carrying the price of U.S oil-based products up with it, thus adversely affecting the growth of the U.S. economy.
In terms of the national situation of the U.S., the oil problem actually reflects the change of supply and demand in the market. If the government carries out the energy transformation plan in the future, the influence of imported oil on the U.S. energy supply and demand, Middle East oil included, will accordingly shrink. As a result, another "safety net" is provided for both the response to sudden international events and the development of the U.S. economy.
As for China, what can we learn from this case? Similar to most countries, oil occupies a large proportion of the Chinese energy structure and statistics show that the increase of imported oil is going to continue, which China really should try to prevent in the future. Referring to the proposed solution in America, I think China should set up an 'oil-safety' system as soon as possible.
In the past, the import channels of China focused on Southeast Asia and the Middle East, where the extremely fluid situation is likely to continue. Therefore, China should increase its oil import channels to decrease the risks brought by unsettled political conditions and regional conflicts. Besides, China should also take its own initiative in the development of international oil resources and set up an overseas oil production base.
What's more, China should also construct an oil-reserve system so it can react to the fluctuating impact of the international oil market. Such a system will largely enhance the safety of China's energy needs and the economy.
President George W. Bush recently said that the United States must reduce its dependence on foreign oil. To avoid the oil problem ultimately turning into a tougher national security issue, and also achieve the transformation of U.S. energy conditions, Bush propounded a future substitute energy plan that included the development of multi-power batteries, solar power, and bio-energies.
The reasons why Bush proposed the plan consist of three aspects. In the short term, the plan might serve Republican candidates well for the mid-term Congressional elections coming in November. It is necessary for President Bush to define the position of the administration on the energy problem and establish the image of a "green president" to gain public support, and help the Republicans retain their majority in both houses of Congress.
From the long term perspective, it indicates the deep concern the U.S. has over its energy problem. The threat the U.S. has faced for decades comes from international politics and economy. For instance, the two oil crises in the mid-seventies and early eighties of the last century had a severe impact on the U.S. economy. In recent years, global oil prices have continued rising, carrying the price of U.S oil-based products up with it, thus adversely affecting the growth of the U.S. economy.
In terms of the national situation of the U.S., the oil problem actually reflects the change of supply and demand in the market. If the government carries out the energy transformation plan in the future, the influence of imported oil on the U.S. energy supply and demand, Middle East oil included, will accordingly shrink. As a result, another "safety net" is provided for both the response to sudden international events and the development of the U.S. economy.
As for China, what can we learn from this case? Similar to most countries, oil occupies a large proportion of the Chinese energy structure and statistics show that the increase of imported oil is going to continue, which China really should try to prevent in the future. Referring to the proposed solution in America, I think China should set up an 'oil-safety' system as soon as possible.
In the past, the import channels of China focused on Southeast Asia and the Middle East, where the extremely fluid situation is likely to continue. Therefore, China should increase its oil import channels to decrease the risks brought by unsettled political conditions and regional conflicts. Besides, China should also take its own initiative in the development of international oil resources and set up an overseas oil production base.
What's more, China should also construct an oil-reserve system so it can react to the fluctuating impact of the international oil market. Such a system will largely enhance the safety of China's energy needs and the economy.
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