"Since CNOOC, an oil company owned mostly by the Chinese government, made its unsolicited $US18.5 billion ($24.9 billion) bid for California-based Unocal Corp last month, the Washington debate has revolved mostly around the deal's economic and national security implications. But the energy and environmental ramifications may justify far more concern. The acquisition attempt, which the Unocal board is studying, suggests that China is anticipating enormous increases in its consumption of fossil fuels. The direct result for the United States and other nations could be a threatening rise in the carbon dioxide emissions associated with global warming, as well as higher petrol prices at the pump.
"The more their demand, the higher oil and gas prices are going to go here," says Michael Wessel, a member of the congressionally chartered US-China Economic and Security Review Commission. "All people have to do is look at the $US2.50 a gallon for gas they spend on their summer vacation to realise that the China problem is here to stay." Chinese demand isn't the only cause of rising petrol prices, of course. And China still uses far less energy per person than the US or other Western nations. But it is also much less efficient in its energy use than major industrialised nations, partly because it relies so heavily on coal to generate electric power.
China requires about three times as much energy as the US to produce $US1 in economic output. It emits nearly four times as much carbon dioxide per dollar of economic activity as the US. That means that as China's rapid economic growth continues, its demand for energy and its contribution to global warming will skyrocket.
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China was exempted from reductions required by the Kyoto Protocol on global warming because it was classified as a developing country. But if China can't reduce the growth of its carbon emissions, it could overwhelm efforts to control them elsewhere. The Energy Information Administration forecasts that from 1990 through 2025, China's total carbon emissions will rise more than the combined increase for the US, western Europe and Japan. The most frightening part is that these forecasts might be too optimistic. They assume that China will produce each dollar of economic output with less energy and fewer carbon emissions. That's been the pattern until recently. However, Jeffrey Logan, China program manager for the Paris-based International Energy Agency, points out the most recent Chinese figures show energy efficiency declining as the nation continues an energy-intensive boom in housing, industrial and road construction. "That's tremendously scary," Logan says."
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http://afr.com/articles/2005/07/07/1120704495664.html