China’s hunger for oil is stretching from Canada to Nigeria. According to Addison Wiggin, the Chinese state-owned oil producer Sinopec bought a 4.65 billion dollar share of Canada’s biggest tar sands project from Conoco Phillips.
What choice does China have? Oil consumption has skyrocketed from about 2 million barrels per day in the early 1980s, to 9 million this year as the Chinese start to buy more cars than Americans do.
Wiggin says that China’s oil consumption could double in the next decade.
The BBC reports that Nigeria and China signed a 23 billion dollar deal for three refineries to be built in Nigeria to increase production. When completed, the Nigerian project could produce another 750,000 barrels a day.
China subsidizes energy costs, but to cut back on oil consumption, China is raising prices to the consumer. Source: Seeking Alpha
However, if China’s current plans succeed in moving rural China into the modern mainstream, the hunger for oil may surpass the United States soon.
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