U.S. Relations With the People's Republic of China (2008)

U.S. Department of Energy

November 19, 2008

Atlantic Green Intelligence Forum
Remarks as Prepared for Secretary Bodman

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Let's look at China alone. China's estimated annual CO2 emissions have already surpassed those of the United States, and by 2020 China's energy consumption will surpass ours as well. Between now and then, China is projected to account for more than two-thirds of the increase in world coal consumption. Today, China has approximately 28 million passenger cars on the road. That number is expected to more than quadruple in only 20 years.

Before I gone on, let me make a necessary point: growing energy use around the world -- in China and elsewhere -- is indicative of growing global economic growth, and that's a good thing. But it certainly presents a pervasive challenge to our world's energy systems and our environmental health.

With regard to the global oil market: over the last 5 years, the reality of tight market conditions -- growing global demand for liquid fuels (especially in China, India, and in the Middle East) coupled with roughly constant global production (about 84.6 m barrels p/day, last 3 years) -- has resulted in lower inventories and lower surplus production capacity. Not surprisingly, this has meant increasingly volatile prices.

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