India has joined China in a growing
demand for oil that now has the world's two most populous nations
bidding up energy prices and racing against each other and global
energy companies in agrab at oil and natural gas fields around the
world. Energy economists in the West admire the success of both China
and India in kindling their industrialization furnaces. But they also
cannot help worrying about what the effect will be on energy supplies
as the 37 percent of the world's population that lives in these two
countries rushes to catch up with Europe, the United States and Japan.
And environmentalists worry about the effects on global warming from
the two nations' plans to burn more fossil fuels. With engineering
expertise and equipment more available around the world, one result is
that oil executives and drillers in remote spots increasingly speak
Mandarin or Hindi, not English. Their newfound commercial connections
live in pariah states such as Sudan and Myanmar, one sign that the
political dynamics of the world oil market pose a difficult challenge
for the Bush administration. The prospect of China's consuming
ever-growing lakes of oil has been noted over the years, although it is
gaining new urgency as Chinese consumption continues to soar. China's
oil imports climbed by a third last year as its oil demand exceeded
Japan's for the first time. Now India is joining China in a stepped-up
contest for energy, with both economies booming recently just as their
oil production at home has sagged. China trails only the United States
in energy consumption; India has moved into fourth place, behind
Russia. India and China are also expanding their navies as they become
increasingly dependent on lines of oil tankers from the Mideast, posing
the beginnings of an eventual challenge to U.S. influence in the Indian
Ocean and South China Sea. [more]