Mounting Political Tensions as the US, Russia and China Compete for the Control of the World's Oil and Gas Reserves


by Fawzia Sheikh
OilPrice.com
2009-12-18



China’s completion of an historic natural gas pipeline with Kazakhstan bypassing Russia this week tightens the Asian behemoth’s grip on energy resources needed to fuel a burgeoning economy, a desire also forcing it on a quest for oil and gas wealth in other corners of the globe.

China is not alone in this scramble for energy security. Hungry for oil and gas, world powers like Russia and the United States are also relying on different strategies to grab resource treasures but their efforts have raised questions about conflicts down the road.

The U.S. Energy Information Administration describes China as the second largest energy consumer behind the United States . Taking advantage of the world’s financial crisis, the Asian powerhouse has tapped currency reserves to invest in both Russia and Central Asia , helping to construct power plants and other domestic infrastructure in return for long-term oil and gas supplies, said Ben Montalbano, a senior research analyst at the Washington-based Energy Policy Research Foundation.

Lacking energy reserves, China has been “working hard to lock inâ€