Oil Security In China Based On Oil Cooperation In Northeast Asia

As an important strategic resource, oil is horned as the “black gold”, the “blood forindustry” and “engine of the modern economy”, having a main effect on the development ofnational economy. The oil security has become an attractive topic. The demand for oil isincreasing with sound and rapid growth of Chinese economy, and the gap between oilproduction and consumption would continue to widen with each passing year, so that thecontradiction between supply and demand of oil is becoming more and more serious. It has toincrease imports to meet the balance. It is the imports of oil going up faster that lead to anincreasing dependence on the world market. Most of the China’s oil imports are from theMiddle East and Africa. The source of importation is relatively single. Most of shippers withoil nearly went through the Strait of Malacca which had a bigger risk called “Malaccadilemma”. In conclusion, the situation of China’s oil security is serious. As one of the mostdynamic economy areas of the world, Northeast Asia occupied an important place in globalpolitical and economic patterns. Though abundant in this region, oil resources are in unevendistribution. It not only has Russia, the big production of oil, but also has Japan and SouthKorea which are lack of oil and rich in techniques and financing funds. In addition, China hasbooming oil demand and board market. It is showed that the region has strongcomplementary in resource, technology, funding, labor etc. At present, there are strongernecessity and realistic possibilities in Northeast Asia multilateral cooperation, it can bothrealize complement with the advantages, reduce the risk of oil development, keep oil strategysafe, and accelerate process of regional integration, achieve good effect of regional economy.But Northeast Asia is a region where big powers have common interests, despite advantagesmentioned above. Many hidden troubles and hot issues have limitted the oil cooperation andlead to disputes in this region, such as the nuclear issue in Korea, the issue of the TaiwanStraits, some of the islands’ sovereignty and maritime demarcations. Mainly because ofcomplicated politics, the lack of mutual trust, great gap in economic development, the fiercecompetition as well as different geocultures, Northeast Asia has not yet established a systemof substantially comprehensive oil security cooperation. In addition, America has involved inNortheast Asia cooperation which increases uncertainties.It was important for us to give play to the geographical advantages and ensure the security of China’s oil based on cooperation with countries included in view of extremelyserious situation of oil security that China was facing. Therefore, the topic “Research on oilsecurity in china based on oil cooperation in Northeast Asia” had prominently practical andacademic significance. Different from previous literatures, combined with the actual situationin Northeast Asia, it analyzed the foundation of cooperation, recent situation of cooperationand factors of Chinese-foreign oil cooperation in Northeast Asia, and evaluatecomprehensively safe-degree of China’s oil security by various measures, then explore themode of oil cooperation between China and foreign countries in Northeast Asia. In the end,security measures were suggested to ensure China’s oil security from various angles relyingon Northeast Asia oil cooperation. It provided the theoretical basis to promote the oilcooperation between China and foreign countries in Northeast Asia and maintain Chinese oilsecurity.The content of this thesis was divided into seven chapters. The first chapter was thepreface. The background and significance were illustrated considering the importance of oilin modern life and security situation of china’s oil. The literature review focused on thenational and international security and evaluation of oil, and the cooperation. Then itdescribed the content and methods, ideas and frameworks.Relevant theories bases were discussed in the second chapter. First, it explored the origin,definition of the meaning and the judging standard of oil security. Then, it elaborated on thetheories of geopolitical economics, regionally economical cooperation, mode of internationaloil cooperation, international division in agreement, international competitive advantages etc.All of these theories paved the way for later research.The contents of the third chapter analyzed the foundation of sino-foreign cooperation inNortheast Asia region. It analyzed comparative advantages from angles of natural endowmentof oil, oil production capacity, consumption levels and powers of enterprises in China, Russia,Japan and Korea. For China, it’s obviously important to strengthen cooperation with Russia,appropriately handle relationship with Japan and Korea, and realize complement with theadvantages.In chapter4, recent situation of cooperation and the influential factors in Northeast Asiawere analyzed. Firstly, it analyzed the economic development in Northeast Asia. Then itintroduced the current situation of the oil cooperation. The factors affecting oil cooperationwere analyzed between China and Russia, Japan, South Korea. Multilateral cooperation of oilhere has its necessity and feasibility. It was the complicated politics, economy and externalfactors that hindered the development of oil cooperation in Northeast Asia seriously.In chapter5, comprehensive evaluation for China’s oil security degree was made basedon oil cooperation in Northeast Asia region. The main factors that influenced oil security were analyzed, and evaluation index was screened. The objective weight of each index ofChina’s oil security was calculated by principal components analysis, and subjective weightof each index was made by the method of consistent fuzzy preference relation. Then, thecomprehensive weight of each index was calculated according to the method of an optimalweights combination with sum of squares of deviation. Finally the calculation of the China’soil security degree was made from2001to2011by using the method of TOPSIS. It showedthat China’s oil security degree was between "weak security" and "unsafe" which should beconcerned highly by government. It can be speculated that China’s oil security degree wouldbe improved greatly in the way of strengthening the oil cooperation in Northeast Asia.In chapter6, it detailedly discussed the mode selection of oil cooperation in NortheastAsia region. At first, the situation of China’s oil security was analyzed. After that, principlesof promoting cooperation that should be followed were discussed. The next, cooperationmode between China and Russia also be discussed, for example, loans for oil, cooperativedevelopment etc. At last, it discussed the cooperation mode between China, Japan and SouthKorea, the three oil consumers. Shelving disputes, seeking common development, andproduction-sharing in the sea oil disputed interests would be the feasible modes.In chapter7, some measures were put forward to ensure China’s oil security from theaspects of oil cooperation in Northeast Asia, such as promoting the China-Russia oilcooperation, enhancing the level of oil cooperation between China, Japan and Korea,promoting the establishment of organization of Northeast Asia oil cooperation, improving thefutures market of oil, establishing the center for crude oil price, and improving the systems ofstrategic oil reserve, deepening cooperation of oil enterprises etc.