The Effects Of Saudi Arabia's Energy Policies On China's Energy Security

Saudi Arabia is the largest oil-production and oil-exportation country in the world at present. It has abundant resources of oil and natural gas. China is the second largest oil-consumption country. Energy shortage is the bottleneck that has affected China's economy sustainable development. It is important to study Saudi Arabia's energy policies for ensuring China's energy security.First, the paper has analyzed the energy natural endowment, industry growth and trade development of Saudi Arabia. Second, it has summarized the aim, effect factors and characteristics of Saudi Arabia's energy policies. Third, it has pointed out the problems and challenges in face of China's energy security and the energy cooperation between Saudi Arabia and China. Fourth, it has discussed how Saudi Arabia's energy policies affected China's energy security. At last, the author has offered measures.The natural endowment of Saudi Arabia's energy presents four characteristics. The kind is single. The total quantity is rich. The personal average possession is high. And the area distributing is convergence.Saudi Arabia has made rapid progress in the energy industry and trade. The energy industry presents six characteristics. First, oil industry becomes the main support of Saudi Arabia's economy. Second, the technology of oil exploration is advanced. Third, Saudi Arabia builds omnipotent natural gas system. Fourth, it carries out innovative management. Fifth, special management organization is founded. Sixth, it attaches importance to environment protect. Foreign trade is the engine of Saudi Arabia's economy development. Energy trade is the most important part of foreign trade. Saudi Arabia exports crude oil and oil-production, and imports consumer goods and ammunition. Saudi Arabia mostly trades with the countries of East-Asia, north-America, Europe-Union and the gulf.Saudi Arabia's energy policies have been affected by many factors. There are the world economy developing trend, the oil price of international market, the political condition in Middle East, OPEC's petroleum policies, the relations between Saudi Arabia and United States, the national economy development, and the national regime stabilization. The energy policies are to achieve economy diversification growth and to maintain the nation's safety and stabilization. The energy policies include six parts. The first is to attach importance to exploration and exploitation and to optimize energy structure. The second is to increase investment and to open step by step. The third is to improve oil-refining ability. The fourth is to supply energy in high yield and to make a price in reason. The fifth is to put transnational management and modernization transportation into practice.The sixth is to increase consumption steadily and to persist in sustainable development.China's energy condition presents four characteristics. First, the energy gross is abundant but the personal average possession is low. Second, the conflict between supply and demand is more and more clear, and the energy structure is irrational. Third, energy utilization efficiency is low but energy consumption is high. Fourth, environment pollution is serious. To ensure energy security, China is faced with many problems and challenges. First, the petroleum is short and the conflict between supply and demand is serious. Second, the importation sources and channels of crude oil are excessively single. Third, crude oil importation has been influenced obviously by large countries. Fourth, crude oil importation has been affected obviously by the gulf situation. The shortage of oil is the essence of China's energy security.At present, Saudi Arabia is the largest crude-oil-importation country of China. Its energy resources are significant for China. The connection of energy trade and cooperation between Saudi Arabia and China has been steady. And Saudi Arabia has been hold positive attitude to it. Saudi Arabia's energy policies have extensive influence to China's energy security. They are helpful for China to implement extroversive energy strategy, to keep energy importation cost reasonable, and to strengthen the cooperation with Saudi Arabia. They can be used for reference to constitute China's energy policies. But they have made the risk increase for China to depend on Saudi Arabia's energy supply.To reply the effects of Saudi Arabia's energy policies, the author has suggested China should take measures to establish perfect energy security system and to ensure the nation's safety. First, China should enhance the torchbearers' connections with Saudi Arabia and consolidate the whole relationship. Second, it can strengthen overall arrangement of the extroversive energy strategy. Third, it should improve the oil strategy repertory system and enhance the ability to resist the risk. Fourth, it can establish oil futures market to evade price risk. Fifth, it should encourage corporations to go out and participate in competition of the international oil market.