Only ten years ago China consumed roughly half the energy consumed by the United States. Fast forward to 2010 and China has now surpassed the United States in energy consumption according to some studies. For more than 100 years the United States led the world in energy consumption. The Wall Street Journal reports on the staggering Chinese growth and what it all means for China, the USA, and the rest of the world.
China’s ascent marks “a new age in the history of energy,” IEA chief economist Fatih Birol said in an interview. The country’s surging appetite has transformed global energy markets and propped up prices of oil and coal in recent years, and its continued growth stands to have long-term implications for U.S. energy security.
The Paris-based IEA, energy adviser to most of the world’s biggest economies, said China consumed 2.252 billion tons of oil equivalent last year, about 4% more than the U.S., which burned through 2.170 billion tons of oil equivalent. The oil-equivalent metric represents all forms of energy consumed, including crude oil, nuclear power, coal, natural gas and renewable sources such as hydropower.
The Wall Street Journal opines:
China’s rapidly expanding need for energy promises to have major geopolitical implications as it hunts for ways to satisfy its needs. Already, China’s rising imports have changed global geopolitics. Chinese oil and coal companies have been looking overseas in their quest to secure energy supplies, pitching the Chinese flag in places like Sudan, which Western companies had largely abandoned under international pressure.
The most ambitious effort to secure overseas energy supplies was the failed 2005 attempt Cnooc Ltd. to take over California-based Unocal in an $18 billion bid, which was trumped by politics and rival Chevron. Despite a short pullback in the aftermath of that failed deal, Chinese companies have expanded overseas, buying assets in Central Asia, Africa, South America, Canada and even small stakes in the Gulf of Mexico. While their overall overseas footprint is still small compared with that of big international oil companies, these companies are expanding with access to cheap credit through China’s state-owned banks.
Voracious energy demand also helps explain why China—which gets most of its electricity from coal, the most polluting of fossil fuels—passed the U.S. in 2007 as the world’s largest emitter of carbon-dioxide emissions and other greenhouse gases.
