Petro-Dragon's Rise What It Means for China and the World

Rating:
Summary: A Good Book of Chinese Energy Quest for Global Security
Review: Another Review by Steven W. Lewis
Western policy-makers and consumers alike are largely unaware of the enormous economic and geopolitical consequences of China's rapidly expanding energy imports. Until the mid-1990s China was a net exporter of hydrocarbons, but by 2010 it is projected to be one of the largest importers of petroleum. The world's most populous nation will enter the ranks of those countries, mainly advanced industrial societies, that are dependent on overseas oil supplies, particularly from the Middle East. What is China doing to secure low-cost, stable supplies of oil for its future energy needs? Will it continue to forge bilateral energy supply agreements or will it enter into international arrangements that guarantee access to oil and fuel stockpiles in times of political crisis and market uncertainty?

In Petro-Dragon's Rise, researcher Xiaojie Xu explains the perceptions,strategies and plans of Chinese government agencies and the three enormous, semi-privatized Chinese oil and gas enterprises. With the insights of a comparative scholar of economics and geopolitics, and from the unique experience of a corporate researcher -- he advised PetroChina on its overseas capitalization plan -- Xu comprehensively explores the rapidly evolving legal, regulatory and policy framework of energy policy and energy security policy formation in China, with an emphasis on the "go
abroad" strategy that has sent Chinese oil engineers to Sudan, Kazakhstan,Venezuela and even Canada in recent years. Petro-Dragon's Rise is essential reading for those trying to understand Chinese perspectives on how China will meet its growing demand for energy.

Steven W. Lewis, Ph.D.
Senior Researcher in Asian Politics and Economics, Baker Institute for Public Policy
Rice University, USA

Rating:
Summary: A Good Book of Chinese Energy Quest for Global Security
Review: Another Review by Steven W. Lewis
Western policy-makers and consumers alike are largely unaware of the enormous economic and geopolitical consequences of China's rapidly expanding energy imports. Until the mid-1990s China was a net exporter of hydrocarbons, but by 2010 it is projected to be one of the largest importers of petroleum. The world's most populous nation will enter the ranks of those countries, mainly advanced industrial societies, that are dependent on overseas oil supplies, particularly from the Middle East. What is China doing to secure low-cost, stable supplies of oil for its future energy needs? Will it continue to forge bilateral energy supply agreements or will it enter into international arrangements that guarantee access to oil and fuel stockpiles in times of political crisis and market uncertainty?

In Petro-Dragon's Rise, researcher Xiaojie Xu explains the perceptions,strategies and plans of Chinese government agencies and the three enormous, semi-privatized Chinese oil and gas enterprises. With the insights of a comparative scholar of economics and geopolitics, and from the unique experience of a corporate researcher -- he advised PetroChina on its overseas capitalization plan -- Xu comprehensively explores the rapidly evolving legal, regulatory and policy framework of energy policy and energy security policy formation in China, with an emphasis on the "go
abroad" strategy that has sent Chinese oil engineers to Sudan, Kazakhstan,Venezuela and even Canada in recent years. Petro-Dragon's Rise is essential reading for those trying to understand Chinese perspectives on how China will meet its growing demand for energy.

Steven W. Lewis, Ph.D.
Senior Researcher in Asian Politics and Economics, Baker Institute for Public Policy
Rice University, USA

Rating:
Summary: An excellent book on China's Oil Quest for Global Security
Review: The impact of a steadily growing Chinese economy on the global oil and gas markets has been a subject for continuous debate by think-tank specialists and academics alike for the past decade. Xiaojie Xu??s Petro-Dragon??s Rise is the first book-length contribution by a Chinese oil industry analyst to offer a comprehensive assessment in the English language.

Xu has been analyzing global oil and gas market trends for the China National Petroleum Corporation since 1983. This work experience has meant his extensive exposure to international energy organizations, multinational energy corporations, and think-tank as well as academic research centers worldwide. His views therefore represent those by one of the most internationally oriented Chinese energy industry analysts.

The book is organized into nine chapters. The first chapter offers an assessment of the mega-trends, at the turn of the century, in global energy supply and demand, together with strategic positioning by the United States and other major powers, international oil companies and host governments. Xu??s emphasis is on improving the channels of transportation to oil importing countries in Asia.

In the second chapter, Xu presents his summary and review of Chinese assessments of China in the global energy market, while updating the readers on major policy changes since 1998 to address the ??explicit imbalance?? (p. 47) in the Chinese oil industry today. According to Xu, a key strategy adopted is to give priority to gas. This is the focus of Chapter Three. From this chapter we learn Chinese energy policymaker??s pragmatism in tapping into both domestic and offshore gas supplies. Structural reforms of the Chinese oil industry make up the focus of Chapter Four. It should be noted, however, reforming the bureaucratic structures is much easier than dealing with the market complexities associated with the overall change in the Chinese economy.

Xu then takes us through a contour of his assessment of Central Asia (Chapter Five), the Middle East (Chapter Six), and Russian (Chapter Seven) as sources of oil and gas import for China. While space does not allow the reviewer to go over each in detail, Xu??s presentation, in contrast with studies on the same subjects by Western writers, presents a picture of mixed opportunities and constraints each of these areas holds for China.

Chapters Eight and Nine elaborate on ongoing mechanisms and future prospects of China??s cooperation with countries in Northeast Asia and the major powers, respectively. In these chapters, Xu outlines how China is utilizing every opportunity possible to diversify its dependence on offshore oil and gas. In these chapters we learn that although China??s Northeast Asian neighbors are likewise dependent on oil and gas supplies from other regions of the world, China sees it conducive to pursue overall economic ties as an effective means for reducing the possible shocks to China??s energy needs.

The book does not have a conclusion chapter. On the other hand, this is perhaps reflective of the state of affairs in China??s domestic and international energy markets. There can be no easy way to offer a sweeping summary.

Overall, Petro-Dragon??s Rise serves as a meaningful overview of China??s energy ties with the rest of the world. The book is well documented and thoroughly analyzed. Interested readers, both in the industry and academia, can gain an informative look inside the world of thinking about China??s energy industry and its global ties. The book should be required reading for courses dealing with China as a player in the global energy markets.

Rating:
Summary: A Good Book of Chinese Energy Quest for Global Security
Review: Western policy-makers and consumers alike are largely unaware of the enormous economic and geopolitical consequences of China's rapidly expanding energy imports. Until the mid-1990s China was a net exporter of hydrocarbons, but by 2010 it is projected to be one of the largest importers of petroleum. The world's most populous nation will enter the ranks of those countries, mainly advanced industrial societies, that are dependent on overseas oil supplies, particularly from the Middle East. What is China doing to secure low-cost, stable supplies of oil for its future energy needs? Will it continue to forge bilateral energy supply agreements or will it enter into international arrangements that guarantee access to oil and fuel stockpiles in times of political crisis and market uncertainty?

In Petro-Dragon's Rise, researcher Xiaojie Xu explains the perceptions,strategies and plans of Chinese government agencies and the three enormous, semi-privatized Chinese oil and gas enterprises. With the insights of a comparative scholar of economics and geopolitics, and from the unique experience of a corporate researcher -- he advised PetroChina on its overseas capitalization plan -- Xu comprehensively explores the rapidly evolving legal, regulatory and policy framework of energy policy and energy security policy formation in China, with an emphasis on the "go
abroad" strategy that has sent Chinese oil engineers to Sudan, Kazakhstan,Venezuela and even Canada in recent years. Petro-Dragon's Rise is essential reading for those trying to understand Chinese perspectives on how China will meet its growing demand for energy.

Steven W. Lewis, Ph.D.
Senior Researcher in Asian Politics and Economics, Baker Institute for Public Policy
Rice University, USA

Rating:
Summary: A Good Book of Chinese Energy Quest for Global Security
Review: Western policy-makers and consumers alike are largely unaware of the enormous economic and geopolitical consequences of China's rapidly expanding energy imports. Until the mid-1990s China was a net exporter of hydrocarbons, but by 2010 it is projected to be one of the largest importers of petroleum. The world's most populous nation will enter the ranks of those countries, mainly advanced industrial societies, that are dependent on overseas oil supplies, particularly from the Middle East. What is China doing to secure low-cost, stable supplies of oil for its future energy needs? Will it continue to forge bilateral energy supply agreements or will it enter into international arrangements that guarantee access to oil and fuel stockpiles in times of political crisis and market uncertainty?

In Petro-Dragon's Rise, researcher Xiaojie Xu explains the perceptions,strategies and plans of Chinese government agencies and the three enormous, semi-privatized Chinese oil and gas enterprises. With the insights of a comparative scholar of economics and geopolitics, and from the unique experience of a corporate researcher -- he advised PetroChina on its overseas capitalization plan -- Xu comprehensively explores the rapidly evolving legal, regulatory and policy framework of energy policy and energy security policy formation in China, with an emphasis on the "go
abroad" strategy that has sent Chinese oil engineers to Sudan, Kazakhstan,Venezuela and even Canada in recent years. Petro-Dragon's Rise is essential reading for those trying to understand Chinese perspectives on how China will meet its growing demand for energy.

Steven W. Lewis, Ph.D.
Senior Researcher in Asian Politics and Economics, Baker Institute for Public Policy
Rice University, USA