Chinese Energy Policies And Strategies In Latin America:Problems And Prospects

In the past thirty years, China's economic growth has been unprecedented. In fact, its growth level has been so high, that it has surpassed the capacity of its domestic energy supply. In order to continue to fuel its economy, the Chinese government and its national oil companies have worked hand-in-hand to seek investments abroad.A key component of China's energy strategy has been to diversify its supply source. This has led it to seek energy investments in all corners of the world. Most research has focused on China's energy investments in the Middle East and Africa. Nonetheless, the international criticism concerning its controversial energy deals with rogue states, such as Iran and Sudan, as well as the growing political instability in these regions has adversely effected China's efforts to ensure energy security. As a result, Chinas has started to look elsewhere to protect its energy supply needs. The relative political peace and growing prosperity of Latin America and recent discoveries of untapped oil reserves have attracted China's undivided attention. It also has awakened the United States' desire to reassert its dominance in the region, commonly referred to as its own "backyard".This thesis seeks to analyze the nature of Sino-Latin American energy relations. In order to achieve its energy security needs, China has increased its economic investment in the region, in particular to gain access to oil. This strategy has achieved good results in a number of Latin American countries. Along with an increase in Chinese investments in the region, there has been a growing concern that China's interests in the region are not only economic, but also political. In order to determine whether the validity of these concerns, this thesis will first summarize China's overall energy strategy and the negative and positive effects of China's search for energy security. As a case study, Brazil best illustrates the possibilities and challenges that accompany China's energy investments in Latin America. It also serves as a useful paradigm for analyzing the motives of Chinese national oil companies in Latin America. This study also explores the effects of Sino-Latin American energy relations on the United States' interests in the region. To conclude, it will describe what may be the potential effects of China, Latin America, and US cooperation on all three parties' energy future.