Case Study Impact of growing global energy demand China

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  • Case Study: Impact of growing global energy demand: China
    • Background
      • In 2001: China accounted for 10% of global energy demand, in 2007 it was 15%
      • Controls 3% of world oil reserves
    • Causes of rising demand
      • 1949 China has been a communist country. 1986 the government developed an Open-Door Policy to oversea investment
      • 1990s became more of a capitalist economy- still not a free market economy
      • Rising energy demand is due to both economic growth and demands of new industry, but also rapid urbanisation and growing car ownership
        • Rural-Urban migration in China is 8,5 million per year
        • Car Ownership to grow from 16 cars per 1000 in 2002 to 267 cars per 1000 in 2030
        • Only uses 10% of its energy for transport but more will be needed
    • Where the energy comes from
      • Coal: relies on coal for 70% of electricity generation. Huge demand means its building on average 3 coal power stations per week
      • HEP accounts for 16% of energy production e.g. Three Gorges Dam
      • Oil: Oil production has now peaked, exploration into off shore fields has begun but territorial disagreements in South China has cause problems
    • Future
      • China's energy security problems matter to the rest of the world due to its size and impact an increase in demand would have
      • Energy dependency is only 12% compared with USA of 40% and Japan of 80%

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