Energy crisis in Asia

Description:

Economic growth in China have contributed to world economy, but some problems emerged as the result of the rapid growth in China. One of the most serious problems is energy problem. The power shortage will continue in the near future due to China's economic growth, which is being driven by the infrastructure and manufacturing industries. Recently, consumption of electricity and gas for automobiles is rapidly increasing in China because of rapid industrialization and increase of automobiles. Actually, in spite of the rapid industrialization, the supply of electricity was limited in 26 provinces in China in 2004. One of the famous economy institutes warned that China will face serious shortage of electricity in Shanghai area in summer in 2005. The crisis will trigger many issues not only in Asia but also in the world.

- Slowing down chinese economy resulting in slowing down world economy - Higher price of energy (oil, natural gas, uranium, etc) - Higher tension on territorial dispute among Asian countries to secure potential oil region (South China Sea, northern territories between Japan and Russia), etc - Bad effect on supply of goods from China to the world

Enablers:

- Development of new energy source around China

- Amicable solution on potential oil region in South China Sea and then development of the area

- Successful govermental regulation for rapid growth of energy consumption in China

- Pupularization of hybrid or fuel-cell car in China, U.S, and other countries

- Amicable solution in Middle East

Inhibitors:

- Clash of Asian countries on territorial dispute on potential energy sources

- Failure of regulation on energy consumption and then sudden energy crisis in China

- Failure of Middle East peace efforts

- Failure of development of alternative energy

- Nature disaster ex)Katrina hurricane

Paradigms:

If energy crisis happens in the worst manner, its effect to the world cannot be unmeasurable. Global downturn in stockmarket could occur with the bottleneck of energy problem. No companies will invest future technology for internet or wireless telecommunication. Governments cannot support further development of internet because securement of energy source becomes their top priority.

Timing:

'90s Chinese governmenr revised its policy, self-sufficiency of energy, because of rapid increase of energy consumption in China

'93 China became importer of oil

'94 U.S and North Korea agreed on KEDO

'01 China and Russia agreed on an oil pipeline construction

'03 U.S, Japan and South Korea agreed to freeze KEDO program

'05 China(CNPC) took over Kazakhstan's oil company

'05 China got oil mining rights from Iran, Kazakhstan, Iraq, Sudan, Venezuela

Web Resources:

[The Korean Peninsula Energy Development Organization ]

[BBC: Energy crisis in China ]

[China Energy Study ]

[Hybrid Car is getting popular ]

[China power crisis dims production ]