China is exploring oil all over the world

China is planning to buy as much of the world’s oil as it can.

Sinochem, the Chinese government-controlled oil group, had offered £532m for Emerald Energy, the FTSE 250-listed oil explorer with fields in Syria and Colombia. For Emerald’s founders it meant a multi-million pound payday.

But as the Times newspaper puts it 7th October, the fact that China is becoming a leading actor of natural resource show. The movement will break the balance of Obama’s political leverage. He needs to get momentum for a deal in the US.

Tom Grieder, analyst at IHS Global Insight, said: “The scale of what it has done so far has been breathtaking.”

“The centre of gravity in the energy industry is shifting east,” said Philip Lambert of Lambert Energy, a consultancy. “They know what 1.4 billion people need so they have a clear idea of where they think the oil and gas prices are going.”

Following with the continual fuel store, China, which has just overtaken the US as the world’s largest emitter of greenhouse gases.

If left unchecked, within 25 years emissions from China will be double those of the combined output of the US, EU, Japan and all other industrialized nations, said Fatih Birol, chief economist of the International Energy Agency (IEA).

The paper said. “In a calculated move, China stole the show at yesterday’s special United Nations summit on climate change with plans to pour billions of dollars into energy-saving technology and nuclear power.”

Compare the benefits and drawbacks, what is certain is that China is fast outgrowing its own limited resources and has given a mandate to its companies to buy them elsewhere.