Oil and gas drilling companies like Triple Diamond Energy Corp. understand how difficult it can be to keep up with the growing demands for oil in a country reliant on petroleum products.  China is quickly finding itself in a similar situation to the US, where the demands for oil are greater than what domestic companies like Triple Diamond Energy Corp. can produce.

China’s Growing Population

With a population of 1.3 billion people, the People’s Republic of China is the most populous country in the world.  With its large population, China has become the second largest consumer of petroleum in the world with its needs continuing to grow along with its population.  In addition to an increase in consumption fueled by population growth, the changes in Chinese society have also contributed to the large consumption of petrol. 

The society in China has changed over the years with bicycle use giving way to automobiles.  It has been estimated that the number of automobiles being used in China has increased by 19% each year since the 1990s. Aware of its large consumption of petroleum, the Chinese government has been looking for a way to reduce its dependency on the oil reserves of other countries.  China is now concentrating on utilizing its domestic oil reserves and importing gas from natural gas producing countries other than those located in the Middle East.

China’s Domestic Oil

In 2006 it was determined that China contained 2.27 trillion cubic meters of natural gas, making it the owner of the 15th largest reserve in the world.  It is estimated that the deposits and yields will continue to grow over the next 15 years. With this knowledge, the Chinese government has been trying to encourage exploration and extraction within its borders. 

The hope is that the oil found in China will help the country keep up with increasing energy needs.  The use of this natural gas will also help the country cut down on pollution levels which is a welcome benefit since China is the world’s largest coal burning polluter.  The natural gas reserves will simultaneously give their natural gas refining industry a boost. 

Reliance on Imported Oil

While China has been encouraging the exploration of domestic reserves, it has not stopped there.  China has recently begun importing more fuel from foreign countries. The People’s Republic has started signing contracts with producers such as Australia, committing them to long-term purchases of millions of metric tons of natural gas each year.  These contracts will help China establish stronger international ties with countries that are hoping to make agreements in order to supply the large population with natural gas.