The oil wars
In the pipeline
Apr 29th 2004 | BEIJING AND MOSCOW
>From The Economist print edition
China and Japan are locked in a fierce diplomatic and economic struggle to win access to Russian oil
China's "biggest concern is protecting itself against the price volatility of international markets. At present, China imports about a third of its oil requirements. This could rise to some 60% by 2030. More than half of China's oil imports come from the Middle East. The oil is shipped through the Malacca Strait between Malaysia and Indonesia, an area notorious for well-organised piracy. China's navy is ill-equipped to carry out duties much beyond its shores. Instability in the Middle East, and its impact on prices, has focused the minds of policymakers across North-East Asia on the need to diversify their supplies." http://www.economist.com/world/asia/displayStory.cfm?story_id=2633952