China's foreign
crude oil expenses to reach US$ 500 billion by 2020
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| David Nealis President of Ceres Ltd. |
Global energy
consultancy firm Wood Mackenzie has published a report saying that from 2020
China will have to spend roughly USD$ 500 billion a year on foreign crude oil.
Woodmac’s President of global markets, William Durbin, told Reuters that 70% of
China's oil demand is forecasted to come from imports by 2020. This US$ 500 billion
annual cost would be greater than that of the US, which is forecasted to spend
US$ 160 billion on foreign crude oil.
This is a motivator
to push China to become much more energy independent.
