Evaluating China’s Oil Security and Overseas Oil Investment

Zheng, Yuhua

doi:10.4236/ajibm.2017.78069

Cited by 3 publications

(6 citation statements)

References 17 publications

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“…In this case, the profits pursuit behavior of the NOCs not only brings market benefits for the oil companies, but also increases and diversifies China's oil supply. Meanwhile, it is demonstrated that China's overseas oil investments contribute to China's oil import both through the increase of oil import volume and the diversification of import sources, and thus enhancing China's oil security (Zheng, 2017;Duan et al, 2018;Shi & Cai, 2020;Zhao et al, 2020). Notably, in normal times, most of the NOCs' overseas equity oil and crude oil production will not be shipped back to China.…”

Section: The Hedging Mechanism For Oil Securitymentioning

confidence: 99%

China’s Oil Security in the Context of Energy Revolution: Changes in Risks and the Hedging Mechanism

Xie¹

2021

AJIBM

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Does China's energy revolution strengthen or weaken its oil security? This study analyzes how the energy revolution influences China's oil security by exploring the changes in risks and the hedging mechanism. China proposed the energy revolution in 2014, committed to carbon peak by 2030 and carbon neutrality by 2060, aiming to accelerate its energy transition. Meanwhile, China has a high oil import dependency due to its rapid economic development and lack of domestic oil resources, which challenges its oil security. The government and the national oil companies (NOCs) are the main actors to ensure China's oil supply. Based on the interactions between the government and the NOCs, the overseas oil investments and the domestic oil production and strategic petroleum reserves, together with the maritime oil transportation and continental pipelines, provide alternatives for China's oil supply in general and in wartime in particular, thus forming the hedging mechanism for China's oil security. Notably, the energy revolution alters the way energy and geopolitics interact, and the development of renewables in China and other states in the world mitigates geopolitical risks by making China and the world less dependent on unstable oil production regions. Lastly, the energy revolution triggers changes in the hedging mechanism for China's oil security due to the buildup of oil reserves including the commercial oil reserves, the arduous development of domestic oil output, and the drop in overseas oil investments but increase in foreign renewables investments. And thus, China's oil security and its capabilities to respond to potential oil supply interruptions have changed accordingly. This paper not only contributes to understanding China's oil security in the context of the energy revolution by analyzing the changes in the hedging mechanism, but also stimulates thinking about the impacts of the energy transition on fossil energy security.

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Section: The Hedging Mechanism For Oil Securitymentioning

confidence: 99%

China’s Oil Security in the Context of Energy Revolution: Changes in Risks and the Hedging Mechanism

Xie¹

2021

AJIBM

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“…There are some other factors of global energy trade which include buyer, seller, policy maker and service providers. These factors should be considered for global Zheng [24] analyzed the uncertainties on investment and prices of natural gas fuel for a competitive market and conclude that energy business has a great potential in the global market. Liedtke [25] also mentioned that the oil investment decision of China is favorable for OBOR partner countries.…”

Section: Review Of Related Workmentioning

confidence: 99%

“…The major part of China's energy security plan is to access to sufficient oil supplies which are also a part of China's national security [24]. More than 11 million barrels per day oil is the requirement for consumption in China which leads China to become atop most oil importer in [45].…”

Section: Chinese Oil Gas and Energy Supply Chain In Obor Contextmentioning

confidence: 99%

“…Usually, oil tanker and pipelines are used to import oil from oil exporting countries to China (Figure 3). So, the way is used for importing about 83% oil in China of which strait of Malacca is used for transportation rout for 80% oil since it is a geopolitically dispute zone [24]. A single rout is necessary for China to import oil, and other energy items and minimize the risk and challenges.…”

Section: Chinese Oil Gas and Energy Supply Chain In Obor Contextmentioning

confidence: 99%

“…OBOR has a provision regarding environmental issues. Tax and tariff system and macro policy of a country may be influenced by the environmental risks which affect the international oil, gas and energy business and the investment decision of a foreign company [24].…”

Section: Environmental Riskmentioning

confidence: 99%

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Oil, Gas and Energy Business under One Belt One Road Strategic Context

Sarker¹,

Hossin²,

Hua³

et al. 2018

JSS

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One Belt One Road (OBOR) Initiative of China is a mega and historical project which facilitates international oil, gas and energy trade and connects people over the world. This article examines the oil, gas, and energy business status under OBOR. It also explores the risk associated with oil, gas and energy business under OBOR initiative of China. The article used secondary sources extensively. The article reveals that China is the top-level energy importing country and the strategy of OBOR is favorable for oil, gas and energy business for all partner countries of OBOR. It also explores the potential risk for oil, gas and energy business under OBOR like political risk, economic risk, investment environment, resource potential, environmental constraints and Chinese factors which can be minimized by using two risk free economic corridors viz. China-Pakistan Corridor (CPEC) and Myanmar-China oil pipeline. The article suggests that a strong initiative should be taken by the government to implement OBOR strategy for creating favorable investment opportunities in China especially for Middle Eastern countries like Saudi Arabia, Russia, Kazakhstan, and Pakistan.

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Pemex in the context of the global oil company: investment policy and lessons learned

SANTOS

2023

Brazil. J. Polit. Econ.

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The article analyzes Pemex’s investment policy for the period 1980-2019, based on the management of other oil companies. The central question is whether in the last four decades, it has been convenient for Pemex to be specialized in oil extraction, while other companies focused on the comprehensive development of the supply chain. The answer is negative. The sale of crude oil and the abandonment of refining made Mexico a net importer of fuels, a trend, which, today, is seeking to be reversed, in an environment of a high fiscal burden and high indebtedness of the company.

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Evaluating China’s Oil Security and Overseas Oil Investment

Cited by 3 publications

References 17 publications

China’s Oil Security in the Context of Energy Revolution: Changes in Risks and the Hedging Mechanism

China’s Oil Security in the Context of Energy Revolution: Changes in Risks and the Hedging Mechanism

Oil, Gas and Energy Business under One Belt One Road Strategic Context

Pemex in the context of the global oil company: investment policy and lessons learned

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