The prospect of China buying up international petroleum supplies to quench its growing thirst for energy is the newest geopolitical nightmare. Like most bogeymen, though, the fear disappears when exposed to harsh light. China is eager to secure resources to feed its developing economy, but those efforts pose no threat to other countries. Oil is fungible. Markets will ensure that every drop that can be produced and distributed will be.
The world has watched with awe at the speed with which China has emerged as one of the engines of global economic growth. One of the consequences of that explosive expansion is a voracious appetite for energy supplies. A little over a decade ago, China was a net energy exporter; today, it is the second-largest energy consumer in the world.
China imports more than 40 percent of its oil. Consumption grew 15 percent last year and is expected to increase another 9 percent in 2005. According to authoritative estimates, Chinese demand for oil will double by 2025. Its dependence on foreign oil will reach 60 percent in five years.