Energy - huge market potential in China
Manufacturing News, Source : The Manufacturer US
Published : 09 Nov 2006 22:51
Energy thinktank Energy Business Reports has released its findings on the China market potential. As we reported earlier today, China as a developing nation has not curbed its GHG emissions at all - but as Energy Business Reports finds, it is poised to offset the balance of the global market.
China’s economic trajectory has driven its expanding energy needs, and it is now the world’s second largest energy consumer behind the United States. Accompanying this increasing energy demand has been a growing dependence on imported oil, and China is now the world’s third largest oil importer. China will continue to be a major player in world energy markets, but increasing energy demands pose tremendous challenges.
China’s present phase of economic and industrial development requires higher energy consumption per unit compared with developed nations. China’s energy sector has enormous potential, especially the coal, petroleum and natural gas industries, yet China is currently a net importer of oil, and imports are expected to increase to more than 900 million barrels in 2006, against a total demand of 1.993 billion barrels per year. China is looking to expand its production of coal, natural gas, and renewable energy sources such as nuclear, solar and hydroelectric power to meet the enormous appetite for energy spawned by its massive industrial complex and consumer sectors.
It is estimated that in 2020, China will need 2.8 billion tons of coal and 600 million tons of crude oil, two and a half times more than in 2000. Given this scenario, China will need to import 250 million tons of petroleum, about 70%, from foreign sources. What’s more, its carbon emissions will reach 1.94 billion tons, and China will likely overtake the US as the nation with the highest greenhouse gas emissions.
To deal with this situation, the Chinese government will need to optimize the country's potential for energy conservation. At present, China's energy utilization efficiency is only 33.4%, nearly 10% lower than the advanced international level, and the unit energy consumption of major products for China’s main industries is much higher than the international level. The government needs to implement policies to boost energy conservation, especially in the transportation, architecture and industrial fields.
In recent years, China has allowed market forces to play a larger role in its economy. Foreign investors are being encouraged by the government to participate in exploitation of the country's natural gas resources, energy infrastructure construction, sales of natural gas, coal mining, gas-fired power generation and the production of petrochemical products. Shell, Exxon Mobil and BP are jostling for a slice of China's gas market, where demand is expected to quadruple to account for 8 percent of China's total energy supply by 2010. In order to tap China's growing energy market foreign companies are making heavy investments.
China will inevitably have a profound impact on future global energy markets, energy security, and environmental quality.burberry bags also enhances flexibility in transport. This brand also has an awesome collection of breitling replica most of which feature a bold embroidered design with rich colors and rhinestone embellishments that make unique.