Comment by energy123

Comment by energy123 4 hours ago

2 replies

China is trying to eliminate oil because of the Malacca Dilemma. The US and allies control the seas as part of containment policy. The US also has the Middle East on lockdown, every gulf country in particular. China has a little base in Djibouti and influence over a collapsing IRGC I guess, but not enough to secure any routes. China only has land-based power projection in Eurasia which exerts some limited but insufficient control over land corridors. This is the real incentive behind China's renewables and electrification efforts. That it also addresses global warming is a very welcome side-effect.

fpoling 4 hours ago

Also China has invested a lot into liquid fuel production from coal. With latest process improvements the relevant cost is like 80-90 USD per barrel. So in few years they will be mostly independent from oil and natural gas imports.