The shanghai cooperation organization in china's energy strategy

Today, China, which has the fastest growing economy and the most promising large market in the world, is becoming a significant player in the global energy market. High dynamics of energy consumption forces the Chinese government intensified to design sustainable energy strategy for the country's energy security and conservation of energy security. Issues related to the problems of energy cooperation between China and the countries of the SCO, especially Russia, have been considered in a number of Chinese and Russian scientists. Despite the fact that in the field of energy cooperation between China and the countries of the SCO received a significant result, many aspects of this cooperation are poorly investigated. To determine the potential of forms and mechanisms of cooperation in the fuel and energy complex have a great value. 

Energy resources are one of the most important factors in the development of mankind, play a strategic role in the implementation of state policy in any country. Stable and unintemipted supply of energy resources provide economic development and improve standards of living. Accordingly, the problem of the formation of energy policy and energy security. In recent decades, most countries seek to develop national energy strategies to identify the most desirable areas of the state in the field of energy, improve energy security and economic efficiency of energy use, based on the domestic demand for, and use of external sources. Today, China, which has the fastest growing economy and the most promising large market in the world, is becoming a significant player in the global energy market. High dynamics of energy consumption forces the Chinese government intensified to design sustainable energy strategy for the country's energy security and conservation of energy security.

China's economic development is largely determined by the state of the fuel and energy complex (FEC) of the country, which is currently being reformed. The most significant problems FEC China are the high dependence of the country's energy consumption of coal (70% of primary energy consumption in the balance sheet of the country), pollution, low energy efficiency, poor infrastructure. The critical situation is with oil. Half of China's oil consumption has to import, and the growing dependence on oil imports is increasing every year. The above problems are threatening China's energy security and, therefore, the Chinese economy. Therefore there is an urgent need to develop China's energy strategy in response to changing trends in the global energy market. Currently, most of the energy supply in China comes from unstable regions of the Middle East and Africa, which is recognized by Chinese analysts factor weakening the country's energy security. In this connection, the problem is put forward to increase the supply of energy resources from Russia and Central Asia (CA). There are fewer risks of instability, in addition, these countries border with China.

In 2001 was founded the Shanghai Cooperation Organization (SCO) member countries which are Russia, China, Kazakhstan, Kyrgyzstan, Uzbekistan and Tajikistan. Of all the possible areas of cooperation between China and other SCO member states energy cooperation is extremely promising. Today, the Chinese energy market is evolving rapidly. It seek to many countries and large companies. Russia and the Central Asian countries is also stepping up cooperation with China in the energy sector, which is not only bilaterally, but also in the format of integration groupings in the framework of the SCO, which are the main binding force is Russia and China.

Issues related to the problems of energy cooperation between China and the countries of the SCO, especially Russia, have been considered in a number of Chinese and Russian scientists. Despite the fact that in the field of energy cooperation between China and the countries of the SCO received a significant result, many aspects of this cooperation are poorly investigated. Is to determine the potential of forms and mechanisms of cooperation in the fuel and energy complex. It’s very significantly to define the role of the SCO as a supplier of energy resources in the emerging China's energy strategy and also:

  • to investigate the status and trends in the global energy market;
  • consider the objectives, priorities and main directions of the major players in the energy strategy of global energy markets, including the S., EU, Russia and OPEC;
  • analyze the energy balance and the internal energy market in China, the state and prospects of development of the country's fuel and energy sector, in particular, the main problems in the fuel and energy sector, threatening China's energy security;
  • identify internal and external areas emerging national energy strategy of China;
  • determine the status and future directions of bilateral cooperation between China and Russia and the Central Asian countries in the energy sector;
  • to evaluate the possibility of a multilateral energy cooperation within the SCO framework.

We suppose that although global oil and gas reserves can meet the demand for over a hundred years, due to different centers of production and consumption of oil and gas resources in the world and the sharp fluctuations in the price, there are several threats to the energy security of individual countries and the world at large. Based on the analysis of the global energy market and energy potential we can assume that by 2030 oil will retain its dominant position in the energy mix, natural gas consumption is expected to grow at the fastest rate in relation to other primary energy sources in connection with the substitution of coal with natural gas and nuclear power, coal's share in the global energy mix will decrease gradually, in the sector of energy consumption at the fastest pace of increase consumption of gas and renewable energy sources. In the world consumption energy decrease the share of OECD countries will increase significantly the share of Asia Pacific and South Asia, mainly China and India [1]. Currently, in many countries, developed and implemented energy strategy as part of the national development strategy to ensure a reliable energy supply. The energy strategy includes two parts: the internal strategy and external strategy. For internal strategies can be classified as problem management and development of energy resources Energy in the country, the problems of energy conservation and development of alternative energy sources. External strategy is to ensure the country's robust, diversified and affordable energy resources, mainly oil and gas. Analysis of the energy strategy of the major players in the global energy market (the U.S., EU, Russia and OPEC) shows that for the consuming of energy in the energy strategy is primarily concerned with ensuring uninterrupted long-term supply of energy at reasonable prices. The purpose of the energy strategy energy-exporting countries is to preserve the energy sovereignty over their resources, providing a stable and long-term nature of the revenues from the export of energy resources, increase investment in the energy industry, etc. Meanwhile, the international energy cooperation is an integral part of the entire system's energy strategy to ensure energy security.

Both internal and external content of China's energy strategy is due to an imbalance of high economic growth rates and constant lack of energy. It is the lack of domestic energy resources, unbalanced structure of energy supply and demand, the problems associated with the use of energy resources, such as poor infrastructure, low energy efficiency, pollution, determine the main directions of the state policy in the field of energy [2, p.440].

China's long-term energy strategy has not yet received final clearance and can be fully analyzed only on the basis of a comprehensive review of existing programs relating to various areas of the energy industry. The main directions of China’s energy strategy include energy conservation, development of domestic energy resources, the development of renewable energy sources, the use of scientific and technological progress, environmental protection, improvement of emergency response and increased international cooperation. China wants to present to form an energy strategy for the long term, which help support a comprehensive energy policy of the country and to regulate, as the development of fuel and energy, and the socioeconomic development of the country as a whole. Chinese leaders are also wary of an increase in imports of hydrocarbons and energy trying to expand international cooperation to ensure the energy security of the country. The result of this is how to attract foreign investment in the energy industry of China and active support Chinese energy companies abroad. To the expansion of energy cooperation between the most promising partner for China is Russia. Interstate and intergovernmental agreements formed the legal framework for energy cooperation between the two countries. Perspective directions of energy cooperation between China and Russia include: long-term supplies of Russian energy resources in China the construction of oil and gas pipelines, electricity trade and cooperation in the peaceful uses of nuclear energy.

In China's energy strategy increasingly prominent place occupied by the countries of Central Asia and their transit potential and energy resources. In the process of providing energy security by diversifying energy imports and changes in the energy mix of the country, the Central Asian countries can play a strategic role [3]. Energy cooperation between China and the Central Asian countries is diverse, including exploration and production of energy, the construction of transit infrastructure, production and transmission of electricity. Strategy importance have an important pipeline "Kazakhstan China" and the gas pipeline "Turkmenistan China" to allow China to diversify energy transport routes to reduce dependence on imports from the Middle East. Although energy cooperation China and the SCO is now carried out on a bilateral level, however, the question of giving him a collective format. The idea of SCO Energy Club is to create a consultative and coordinating body for adapting the energy needs of member countries and contributing to the promotion of energy resources and products of the SCO regional markets. In the framework of the SCO member states collectively interact to intensify multilateral energy projects, and to resolve disputes arising from the conflicts of interest of member countries, energy products, and the member states, their consuming.

As conclusion:

  1. The expansion of energy cooperation between the most promising partner for China is Russia. Interstate and intergovernmental agreements formed the legal framework for energy cooperation between the two Perspective directions of energy cooperation between China and Russia include: long-term supplies of Russian energy resources in China, the construction of oil and gas pipelines, electricity trade and cooperation in the field of peaceful uses of nuclear energy.
  2. In China's energy strategy is increasing the value of Central Asia, the most important element of which — energy resources and transit potential of the In the process of providing energy security by diversifying energy imports and changes in the structure balance of energy resources, the Central Asian countries can play a strategic role. Energy cooperation between China and Central Asian countries show varied, including exploration and production of energy, the construction of transit infrastructure, production and distribution of electric power. An important strategic value have the pipeline "Kazakhstan China" and the gas pipeline "Turkmenistan China" to allow China to diversify its energy imports in order to reduce dependence on imports from the Middle East.
  3. Although energy cooperation China and the SCO is now carried out on a bilateral level, but time itself raises the question of giving it a collective The idea of SCO Energy Club is to create a consultative and coordinating body for adapting the energy needs of member countries and contributing to the promotion of energy resources and products of the SCO on the trans-regional markets. In the framework of the SCO countries members can collectively work together to enhance the multilateral energy projects, and resolve disputes arising from conflicts of interest of member countries, energy products, and the member states, their consuming.

 

References

  1. Tyler, Roney. The Shanghai Cooperation Organization: China’s NATO? //The Diplomat. — 2013. September 11: [DueKTpOHHbIii pecypc]. PewoM nocTynathediplomat.com (QaTa o6paiueHux 17.11.2013).
  2. Zhao Huasheng. China’s View of and Expectations from the Shanghai Cooperation Organization // Asian — 2013. №3. — P.436-460.
  3. China, Central Asia and the Shanghai Cooperation Organization / by Sarah Batiuk and Joanna Yu Taylor: [DueKTpOHHbIii pecypc]. PewoM nocTyna URL: http://cftni.org/2013.09.23-ShangaiCooperationOrganizationFinal.pdf (QaTa o6paiueHux 11.2013).
Year: 2013
City: Almaty
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