China Races for Energy Security, Part 2
By: James Finch | Posted: 21st August 2006
Are China's New Silk Roads Filled with Pot Holes?
China's creation of new silk roads of energy sources has been challenging. Emerging in the mid 1990s as an economic powerhouse to be taken seriously, in the wake of Japan's economic slowdown and the collapse of the Soviet Union, China has all but dictated world commodity prices in a frustrating drive to continue fueling the country's rapid growth. Unfortunately, both Russia's resolve to monopolize energy assets in Central Asia and U.S. political paranoia about China's global ambitions have led to a number of disappointments and setbacks.
Remember China's failed attempt to takeover of UNOCAL? Had China National Offshore Oil Corporation (CNOOC) bought UNOCAL, the acquisition would have impaired U.S. economic influence in both Thailand and Burma. Despite this setback, China continued investing heavily in Burma. The Chinese hope to someday export their neighbor's hydroelectric power, by helping the Burmese build a dam across the Salween River.
By acquiring rights to Daewoo's recently discovered offshore oil and natural gas in Burma, China will probably build another pipeline into its country. With each major stride forward, China is frequently pushed back a step. China has grown accustomed to the habit of settling for less in order to meet the country's demand for energy security. Meanwhile, China has been criticized for buying marginally producing oil fields, overpaying for commodities and doing business with unsavory nations.
James Finch contributes to StockInterview.com and other publications. You can read all of his articles at http://www.stockinterview.com
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James Finch is a contributing editor for StockInterview.com and other publications. http://www.stockinterview.com
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Tags: mid 1990s, central asia, economic powerhouse, oil fields, pot holes, hydroelectric power, economic slowdown