US, China forging a joint energy future?

ISN SECURITY WATCH (Friday, 17 March: 15.59 CET) – China is willing to consider future oil, gas, renewable energry, and global energy security projects with the US, the government in Beijing has reportedly said.

According to a report in the Financial Times on Friday, Chinese Foreign Ministry spokesman Qin Gang told reporters in Beijing that China “stands ready to cooperate with the US and other countries [...] on the basis of equality and mutual benefit” in terms of energy issues.

Earlier this week, US Senator Dick Lugar said it was crucial for the US to increase energy cooperation with China and India, calling Washington's energy dependence “the albatross” of US national security.

“There is great potential for the two countries and an extensive range of areas for co-operation,” Qin said. “We must have a very active approach.”

Han Xiaoping, CEO of Falcon Power, an energy consultancy in Beijing, told the Financial Times that the US and China should work together on natural gas exploration, perhaps with American companies becoming more active in China. “Not cooperating will allow natural gas prices to stay high, causing losses for both countries,” he was quoted as saying.

In related news, the International Herald Tribune reported on Friday that Russia intends to increase crude oil exports by 25 per cent this year by shipping more oil to China by rail.

Russian ambassador to China, Sergei Razov, said the increase would represent more than US$6.5 billion at current prices, according to the daily.

Also on Friday, Russia's RIA Novosti reported that a center had been opened in Beijing to provide informational support for the Year of Russia in China, a series of cultural, economic and other events designed to promote bilateral exchanges.