Analysis Of Chinese Petroleum Security And The Political Risks In Transnational Management Of Petroleum Enterprises

Petroleum security, a significant constituent of national security, has much effect on national economy and social development of a country. With the rapid development of economy and society in China, there is a greater demand for petroleum and the demand is in rigid situation. However, the national petroleum supply cannot satisfy the demand of petroleum market for a long time. China has become a petroleum importing country since 1993 and has become the second largest petroleum importing country at present, whose extent of the independence on foreign petroleum has been up to 40%. The upgrading of industrial structure and cost restriction of environment protection and transport shall lead to the increasing proportion of high quality energy like petroleum in energy demand structure.There are two ways to solve supply and demand contradiction. One is to decrease demand. China as the second largest petroleum consumption country with the largest number of people and fastest economic increase is confronted with the adjustment of industrial structure and energy structure. Chinese depending on petroleum will become worse in a long time. The other is to increase supply. There are two sources to increase supply-national market and international market. The petroleum production depends on petroleum reserves, production capacity, cost and benefit conditions about production, and is even involved with equity division. Seen from the practical situation, the above factors restrict the insufficient supply of national petroleum. Hence, Chinese petroleum security strategies must be based on overseas market to acquire balance of supply and demand in international petroleum market.As in international market petroleum is a high speculative monopolistic resource manipulated by international large capital. Hence, its price fluctuates and has great shock to economy of one country. Even though China can purchase petroleum from international petroleum company successively, even though Chinese petroleum companies adopt the most advanced technique and equipment to refine petroleum and even though the internal management realizes modernization, the benefits of the basic industries vital to o national well-being and the people's livelihood will all loses and will inevitably influences other relevant industries once petroleum price rises for several dollars. Hence, the long term strategies for petroleum in China...