Security Strategy Of China's Oil Imports

On January 22nd, 2010, General Office of the State Council formally released a document, namely"A Notice about the Establishment of National Energy Committee Sponsored by the State Council", thus proclaiming the setup of this organization chaired by Premier Wen. These measures meant the important place of various issues concerning energy security and development on the political agenda of Chinese government. As China's economy has boomed these years, its demand for petroleum also increased greatly. However, the domestic output of crude oil can hardly met this demand, thus making the contradiction between the ever-growing demand for oil and the unstable import of oil the most conspicuous challenge facing China's oil import. Therefore, the author writes this paper to analyze comprehensively various unstable factors in oil import, and try to ultimately help solve the hard situation of China's energy security. With this purpose being the core contents, this article is divided into four segments:The first chapter is assigned to examine both foreign and domestic oil markets from the angle of demand and supply. Based on the analysis, the chapter found out that the amount of supply is slightly larger than that of demand for oil. At the same time, the hot competition in the world oil market has generated a lot of political, military and diplomatic conflicts, which in turn placed blockades on development of international oil trade. Therefore, China's energy security depends greatly on whether it can get enough oil from the international market.The second chapter is designed to analyze various security factors of oil import in terms of prices, origins and transportation. In this chapter, the author found out a serious of facts. Firstly, China doesn't have enough privilege and power in the international price-decision system; secondly, the oil origins from where China import oil, generally are countries and regions under very complex and unstable politics, and vulnerable to various conflicts; thirdly, the sea and land transport channels are exposed to various wars, regional conflicts, terrorist activities, pirates and organized crimes; finally, the inadequate ability of China's fleet and over-dependence on international oil tanker lowered greatly the security index of Chinese oil transportation. All of these factors presented serious security challenges to Chinese oil import.The third chapter is assigned to examine the dilemma facing Malacca Straits from the viewpoints of basic forms and security situation. The chapter starts from an assumption that China gets most of oil import through Malacca Straits, thus making the Chinese oil import security subject to pirates, terrorism and marine accidents. Nowadays, military embargo and blockades measures took by large powers hadn't produce desirable effects. Furthermore, the unsafe transporting range will be broadened beyond Malacca Straits, which together gave birth to the dilemma of Malacca Straits with relatively low influence on oil trades.The last chapter tried to work out measures to lower the risks facing oil import from the prospective of market and national power. Nowadays, we need to take serious measures, such as implementing diversified development according to the supply-demand principle of free market, enhancing international cooperation and increase oil reserve to withstand various challenges on China's oil import. Only with these actions, we can greatly improve the international oil market circumstances surrounding China. At the same time, pushing the process of open-and-reform and strengthening national marine defense step by step are the basic guarantee for evading risks in oil import and safeguarding Chinese energy security.