Uh… They’re Number One?

Frank James at NPR:

The U.S. is no longer the single largest consumer of the world’s energy resources. That distinction now goes to China, according to the International Energy Agency.

The IEA says that according to an analysis of its data for 2009, China, with a population of 1.33 billion compared with the U.S.’s 310.2 million, has outstripped the U.S.

It’s been known for some day that this day would come. But it happened faster than was forecast because China was hurt less by the global recession than the U.S.

Nicholas Deleon at Crunch Gear:

The actual numbers are pretty impressive, particularly when you consider that a mere 10 years ago China was quite a bit behind the U.S.

China consumed some 2,252 millions tons of the oil equivalent of sources such as coal, nuclear power, natural gas, and hydropower. The U.S. consumed 4 percent less. These are numbers from last year, by the way.

But that’s where energy efficiency comes into play. Since the year 2000, the U.S. has increased its energy efficiency by about 2.5 percent annually. China? 1.8 percent. So not a huge difference, but a difference nonetheless.

Does this really mean anything to you? Eh, maybe. Certainly it’ll have implications for the world at large though. Now that China is the biggest consumer of energy, it alone is in the position to tell energy providers, “Look, we’re willing to pay X for Y units of energy.” If China’s X is bigger than the U.S.’s X, then we may be looking at a situation where energy prices will go up simply because “someone else” is willing to pay more.

Which could mean that all the factories that produce all the lovely electronic gizmos we talk about day in, day out, could see their costs of doing business go up. And who would make up the difference? Yes, you!

Then again, it could have the very opposite effect, and end up lowering prices.

Mark Wilson at Gizmodo:

A different metric? Three years ago, China was the world’s biggest exporter of coal. Now it’s the leading importer. And last year, for the first time ever, Saudi Arabia sold more oil to China than the US.

Given that China’s consumption will give them more negotiation power in the world’s power market, it may be a good time to buck our trend of a mere 2.5% energy efficiency increase per year.

Frank Holmes at Wall Street Pit:

While most, if not all, had predicted China would become the world’s largest energy user, many didn’t think it was going to happen for another five years. China’s rise to the top can largely be attributed to a decline in energy usage in the U.S. China’s 2009 energy usage was below that of the U.S. from 2004-2008, before the financial crisis.

In fact, just ten years ago China’s energy consumption was less than half that of the U.S., according to the Wall Street Journal. The U.S. remains the biggest energy consumer on a per capita basis, the IEA economist said, consuming three times more per citizen than China. The U.S. also consumes more than twice the amount of oil that China does in a day.

But like most things with China, that statistic won’t last long. The IEA reported in last year’s World Energy Outlook that China and India will represent more than half of all incremental demand increases by 2030.

Well aware of the global politics of energy, the Chinese government was quick to dismiss the story as an overestimation by the IEA. Probably not the last time we’ll see modesty from Beijing as the country continues to put “world’s largest” in front of more and more resources.

Paul Denlinger at Forbes:

This is why the Chinese government has chosen to invest in developing new green energy technology.

The country is very fortunate in that most of the discovered deposits of rare earths used in the development of new technologies are found in China. While these deposits are very valuable, up until recently, the industry has not been regulated much by the Chinese central government. But now that Beijing is aware of their importance and value, it has come under much closer scrutiny. For one, Beijing wants to consolidate the industry and lower energy waste and environmental damage. (Ironically, the rare earth mining business is one of the most energy-wasteful and highly polluting industries around. Think Chinese coal mining with acid.)

At the same time, Beijing wants to cut back rare earth exports to the rest of the world, instead encouraging domestic production into wind and solar products for export around the world. With patents on the new technology used in manufacturing, China would control the intellectual property and licensing on the products that would be used all over the world. If Beijing is able to do this, it would control the next generation of energy products used by the world for the next century.

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1 Comment

Filed under China, Energy

One response to “Uh… They’re Number One?

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