Impact of growing global energy demand e.g. China case Study

Question 1

Background:

Answer 1

 In 2001, China accounted for 10% of global energy demand, in 2007 it was 15%
 Per capita energy demand is still relatively small due to its huge population (e.g. 2006 consumed
less than 7 million barrels/day a 1/3rd of USA)
 Controls 3% of world oil reserves (enabled China to be self-sufficient until 1995)

Question 2

Causes of rising demand:

Answer 2

1. Since 1949 China has been a communist country separate from the rest of the world, however
   in 1986 the government developed an ‘Open-Door Policy’ to overseas investment.
2. 1990s became more of a capitalist economy allowing individuals to accumulate wealth = still not
   a free-market economy as most companies are state owned (LINK TO SUPERPOWER UNIT)
3. Rising energy demand is due to both economic growth and the demands of the new industry
   but also rapid urbanisation and growing car ownership
   - Rural-urban migration in China is 8.5 million people per year (45million expected to move
   to the cities by 2012)
   - Car ownership to grow from 16 cars per 1000 people in 2002, to 267 cars per 1000
   people in 2030 (by 2020 expected to have 140 million private cars on the road)
   - Only uses 10% of its energy for transport currently but will need huge amounts in the future

Question 3

Where does the energy come from?

Answer 3

Coal – Relies on coal for 70% of its electricity generation and the huge demand means China is
building on average 3 coal-fired power stations a week. Creates environmental problems for them e.g.
Beijing Olympics. Majority of the coal is located in the north and west, whilst industry is located in
the south and east.
HEP – Accounts for 16% of china’s energy production e.g. Three Gorges Dam and China aims to build
HEP dams on all of its major rivers
Oil – Oil production has now peaked and exploration into offshore fields has begun, however
territorial disagreements in the South China Sea is making this difficult  importing more oil

Question 4

Future:

Answer 4

China’s energy security problems matter to the rest of the world due to its size and the impact that an increase in demand would have on everyone else. However is energy dependency is only 12%
compared with USA of 40% and Japan of 80%.