Oil Supply Routes in the Asia Pacific: China's Strategic Calculations

Oil Supply Routes in the Asia Pacific: China’s Strategic Calculations
respectively having up the largest proportions (Qatar comes in a distant
th
6 —nonetheless it is strategically important because it is likely to be a major
supplier of natural gas to China in the future). Consequently, these are the
countries that are of long term importance to China in terms of its energy
supply needs. China’s oil imports from these major players have grown
rapidly in the last two decades. It can be argued that supply arrangements
with other countries in the region are likely to be short term engagements.
Figure 3
Percentage of Global Oil Reserves in the
Middle East in 2010
United Arab
Emirates,
7.1%
Iran, 9.9%
Iraq, 8.3%
Saudi Arabia,
19.1%
Qatar, 1.9%
Kuwait, 7.3%
Source: BP Statistical Review of World Energy 2011
In 1999, Chinese President Jiang Zemin visited Saudi Arabia on a state visit
and pronounced a “strategic oil partnership” between the two countries. In
November 2010, China overtook the US as Saudi Arabia's biggest oil
customer. It buys more than a million bpd from Saudi Arabia—constituting
approximately a fifth of its total imports. China's total imports have doubled
since 2005; an indication of the fast pace at which Chinese demand and
bilateral ties are growing in what is today perhaps the world's most
significant energy relationship. The relationship is enhanced by the fact that
China has been granting many downstream projects to Saudi Aramco and
Saudi Basic Industries Company in China, and there are about 90 Chinese
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