China's Future Energy Needs

China is the world's second-largest consumer of energy and the third-largest producer of energy. China consumes more than 10 percent of the world's energy, following only the United States. It is projected between 2015 and 2020 the world oil supply will flatten and then slowly decline. In contrast to declining oil reserves China's oil needs are projected to more than double by 2030. China's electricity and natural gas demand is expected to triple while reliance on coal is expected to double. If China maintains its current pace it will overtake the United States and become the largest consumer and producer of energy in the world. China's current plan to meet future energy needs is very much dependant on fossil fuels. According to industry reports coal (60%) and oil (27%) will account for 87 percent of China's total energy demand by 2030. If China does not utilize new cleaner burning initiatives into their coal-fired power generation plants China will continue to pollute the world and may cause irreversible damage. The World Heath Organizations reports that within the next two decades China will become the largest emitter of green house gases in the world. The effects of pollution on the Chinese economy are enormous. The World Bank estimates pollution costs China eight percent of GDP. Finally, if energy demand continues to grow at present rates, China may begin to crowd the United States and others out of the global energy market. The United States as the top consumer of energy will either have to curb consumption to make room for China, or will have to find a way to curb China's massive energy needs. Both China and the United States need to realize the powerful incentives which would be gained through mutual cooperation in the search for new energy reserves and energy sources.