The Chinese government continues to implement its effective energy policy by snapping up energy resources of every type around the world. Unlike America, China recognizes that relying on foreign sources of energy is a dangerous strategy. At present, the Asian giant uses approximately 10 million barrels of oil a day (or roughly half the consumption of the U.S.). However, while U.S. consumption has stayed steady or even declined, China’s booming economy is requiring more and more energy.
By 2020, demand for oil in China is expected to rise by 50 percent to 15 million barrels a day. With that in mind, the Chinese government has put an energy plan in place, one that puts a premium on secure supplies of key fuels.
To that end, CNN reports that China’s aggressive buying spree is unmatched:
They include CNOOC (CEO)’s purchase of a $2 billion stake in Chesapeake’s Texas oil fields in 2010 as well as CNOOC’s $2 billion purchase of Canadian oil sands operator OPTI Canada in 2011.
Earlier this month, reports said PetroChina (PTR) is close to buying an old refinery on Aruba owned by American refining giant Valero (VLO, Fortune 500).
China is also said to be interested in building a pipeline to carry 300,000 barrels a day of Colombian oil to the Pacific Coast, according to a recent Eurasia Group note.
These deals come on the heels of some other major energy acquisitions.
Also in 2011, China National Petroleum Corp. paid over $5 billion for a joint venture in Canadian shale gas properties held by Encana (ECA), and Sinopec (SHI) put down $7 billion for a share in Brazil’s deepwater oil assets.
Read more from CNN HERE.