IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v228y2021ics0360544221007969.html
   My bibliography  Save this article

What factors contribute to the mutual dependence degree of China in its crude oil trading relationship with oil-exporting countries?

Author

Listed:
  • He, Shuying
  • Guo, Kun

Abstract

As Chinese dependence on foreign oil increases over years, oil security becomes one of the top concerns of policy makers. China’s initiative in its various crude oil trading relationships is closely related to its energy security. Therefore, it is helpful to explore factors that are correlated with Chinese activeness and passiveness in its oi trading relationships. This paper explores factors that possibly affect the position of China in its crude oil trading relationships which is quantified by the mutual dependence degree (MDD). The higher the MDD, the more active China is in its crude oil trading relationships. The results show that China has greatly diversified its crude oil import sources and has occupied an active position in its trading relationships with its major oil suppliers. In general, MDD is primarily determined by the oil consumption of China and the oil production of the oil-exporting country. In other words, one’s initiative in the oil trading relationship depends on how significant one is as an oil demander or an oil supplier.

Suggested Citation

  • He, Shuying & Guo, Kun, 2021. "What factors contribute to the mutual dependence degree of China in its crude oil trading relationship with oil-exporting countries?," Energy, Elsevier, vol. 228(C).
    • Handle: RePEc:eee:energy:v:228:y:2021:i:c:s0360544221007969
    DOI: 10.1016/j.energy.2021.120547
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544221007969
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2021.120547?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Vivoda, Vlado, 2009. "Diversification of oil import sources and energy security: A key strategy or an elusive objective?," Energy Policy, Elsevier, vol. 37(11), pages 4615-4623, November.
    2. Zhao, Yabo & Liu, Xiaofeng & Wang, Shaojian & Ge, Yuejing, 2019. "Energy relations between China and the countries along the Belt and Road: An analysis of the distribution of energy resources and interdependence relationships," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 133-144.
    3. Zhang, Jing, 2019. "Oil and gas trade between China and countries and regions along the ‘Belt and Road’: A panoramic perspective," Energy Policy, Elsevier, vol. 129(C), pages 1111-1120.
    4. Zhang, ZhongXiang, 2012. "The overseas acquisitions and equity oil shares of Chinese national oil companies: A threat to the West but a boost to China's energy security?," Energy Policy, Elsevier, vol. 48(C), pages 698-701.
    5. Jian Xu & Jin-Suo Zhang & Qin Yao & Wei Zhang, 2014. "Is It Feasible for China to Optimize Oil Import Source Diversification?," Sustainability, MDPI, vol. 6(11), pages 1-13, November.
    6. Zhang, Hai-Ying & Ji, Qiang & Fan, Ying, 2013. "An evaluation framework for oil import security based on the supply chain with a case study focused on China," Energy Economics, Elsevier, vol. 38(C), pages 87-95.
    7. Hao, Xiaoqing & An, Haizhong & Qi, Hai & Gao, Xiangyun, 2016. "Evolution of the exergy flow network embodied in the global fossil energy trade: Based on complex network," Applied Energy, Elsevier, vol. 162(C), pages 1515-1522.
    8. Sergey Mityakov & Heiwai Tang & Kevin K. Tsui, 2011. "Geopolitics, Global Patterns of Oil Trade, and China¡¦s Oil Security Quest," Working Papers 322011, Hong Kong Institute for Monetary Research.
    9. Shao, Yanmin & Qiao, Han & Wang, Shouyang, 2017. "What determines China's crude oil importing trade patterns? Empirical evidences from 55 countries between 1992 and 2015," Energy Policy, Elsevier, vol. 109(C), pages 854-862.
    10. van Moerkerk, Mike & Crijns-Graus, Wina, 2016. "A comparison of oil supply risks in EU, US, Japan, China and India under different climate scenarios," Energy Policy, Elsevier, vol. 88(C), pages 148-158.
    11. Wang, Qiang & Li, Shuyu & Li, Rongrong, 2018. "China's dependency on foreign oil will exceed 80% by 2030: Developing a novel NMGM-ARIMA to forecast China's foreign oil dependence from two dimensions," Energy, Elsevier, vol. 163(C), pages 151-167.
    12. Yuan, Meng & Zhang, Haoran & Wang, Bohong & Huang, Liqiao & Fang, Kai & Liang, Yongtu, 2020. "Downstream oil supply security in China: Policy implications from quantifying the impact of oil import disruption," Energy Policy, Elsevier, vol. 136(C).
    13. An, Qier & Wang, Lang & Qu, Debin & Zhang, Hujun, 2018. "Dependency network of international oil trade before and after oil price drop," Energy, Elsevier, vol. 165(PA), pages 1021-1033.
    14. Ji, Qiang & Zhang, Hai-Ying & Zhang, Dayong, 2019. "The impact of OPEC on East Asian oil import security: A multidimensional analysis," Energy Policy, Elsevier, vol. 126(C), pages 99-107.
    15. Xia, Yan & Kong, Yishu & Ji, Qiang & Zhang, Dayong, 2019. "Impacts of China-US trade conflicts on the energy sector," China Economic Review, Elsevier, vol. 58(C).
    16. Zhang, Hai-Ying & Ji, Qiang & Fan, Ying, 2015. "What drives the formation of global oil trade patterns?," Energy Economics, Elsevier, vol. 49(C), pages 639-648.
    17. Wu, Gang & Wei, Yi-Ming & Fan, Ying & Liu, Lan-Cui, 2007. "An empirical analysis of the risk of crude oil imports in China using improved portfolio approach," Energy Policy, Elsevier, vol. 35(8), pages 4190-4199, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhu, Guangyan & Tian, Yajun & Liu, Min & Zhao, Yating & Wang, Wen & Wang, Minghua & Li, Quansheng & Xie, Kechang, 2023. "Comprehensive competitiveness assessment of ammonia-hydrogen fuel cell electric vehicles and their competitive routes," Energy, Elsevier, vol. 285(C).
    2. Zhang, Shikun & Anser, Muhammad Khalid & Yao-Ping Peng, Michael & Chen, Chunchun, 2023. "Visualizing the sustainable development goals and natural resource utilization for green economic recovery after COVID-19 pandemic," Resources Policy, Elsevier, vol. 80(C).
    3. Minfeng Wu & Wen Chen, 2022. "Forecast of Electric Vehicle Sales in the World and China Based on PCA-GRNN," Sustainability, MDPI, vol. 14(4), pages 1-14, February.
    4. Chang, Lei & Taghizadeh-Hesary, Farhad & Saydaliev, Hayot Berk, 2022. "How do ICT and renewable energy impact sustainable development?," Renewable Energy, Elsevier, vol. 199(C), pages 123-131.
    5. Wang, Yue & Zhang, Zhenke & Xu, Minghui, 2023. "Evolution pattern of African countries' oil trade under the changing in the global oil market," Energy, Elsevier, vol. 284(C).
    6. Witold Chmielarz & Marek Zborowski & Mesut Atasever & Jin Xuetao & Justyna Szpakowska, 2023. "The Role of ICT in Creating the Conscious Development of Green Energy Applications in Times of Crisis: Comparison of Poland, Türkiye and People's Republic of China," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 492-519.
    7. Yang, Weixin & Pan, Lingying & Ding, Qinyi, 2023. "Dynamic analysis of natural gas substitution for crude oil: Scenario simulation and quantitative evaluation," Energy, Elsevier, vol. 282(C).
    8. Liu, Yang & Dilanchiev, Azer & Xu, Kaifei & Hajiyeva, Aytan Merdan, 2022. "Financing SMEs and business development as new post Covid-19 economic recovery determinants," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 554-567.
    9. Yu, Huaying & Wei, Wei & Li, Jinhe & Li, Ying, 2022. "The impact of green digital finance on energy resources and climate change mitigation in carbon neutrality: Case of 60 economies," Resources Policy, Elsevier, vol. 79(C).
    10. Sadiq, Muhammad & Lin, Chia-Yang & Wang, Kuan-Ting & Trung, Lam Minh & Duong, Khoa Dang & Ngo, Thanh Quang, 2022. "Commodity dynamism in the COVID-19 crisis: Are gold, oil, and stock commodity prices, symmetrical?," Resources Policy, Elsevier, vol. 79(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Jing, 2019. "Oil and gas trade between China and countries and regions along the ‘Belt and Road’: A panoramic perspective," Energy Policy, Elsevier, vol. 129(C), pages 1111-1120.
    2. Guo, Kun & Luan, Liyuan & Cai, Xiaoli & Zhang, Dayong & Ji, Qiang, 2024. "Energy trade stability of China: Policy options with increasing climate risks," Energy Policy, Elsevier, vol. 184(C).
    3. Xuanru Zhou & Hua Zhang & Shuxian Zheng & Wanli Xing & Pei Zhao & Haiying Li, 2022. "The Crude Oil International Trade Competition Networks: Evolution Trends and Estimating Potential Competition Links," Energies, MDPI, vol. 15(7), pages 1-20, March.
    4. Wang, Kai-Hua & Su, Chi-Wei & Umar, Muhammad, 2021. "Geopolitical risk and crude oil security: A Chinese perspective," Energy, Elsevier, vol. 219(C).
    5. Benye Shi & Tian Cai, 2020. "Has China’s Oil Investment in Belt and Road Initiative Countries Helped Its Oil Import?," Energies, MDPI, vol. 13(12), pages 1-13, June.
    6. Xiaolei Sun & Jun Hao & Jianping Li, 2022. "Multi-objective optimization of crude oil-supply portfolio based on interval prediction data," Annals of Operations Research, Springer, vol. 309(2), pages 611-639, February.
    7. Vivoda, Vlado, 2022. "LNG export diversification and demand security: A comparative study of major exporters," Energy Policy, Elsevier, vol. 170(C).
    8. Liu, Litao & Cao, Zhi & Liu, Xiaojie & Shi, Lei & Cheng, Shengkui & Liu, Gang, 2020. "Oil security revisited: An assessment based on complex network analysis," Energy, Elsevier, vol. 194(C).
    9. Zhang, Hongwei & Wang, Ying & Yang, Cai & Guo, Yaoqi, 2021. "The impact of country risk on energy trade patterns based on complex network and panel regression analyses," Energy, Elsevier, vol. 222(C).
    10. Wang, Yue & Zhang, Zhenke & Xu, Minghui, 2023. "Evolution pattern of African countries' oil trade under the changing in the global oil market," Energy, Elsevier, vol. 284(C).
    11. Xiaoyu Niu & Wei Chen & Nyuying Wang, 2023. "Spatiotemporal Dynamics and Topological Evolution of the Global Crude Oil Trade Network," Energies, MDPI, vol. 16(4), pages 1-18, February.
    12. Wang, Kai-Hua & Xiong, De-Ping & Mirza, Nawazish & Shao, Xue-Feng & Yue, Xiao-Guang, 2021. "Does geopolitical risk uncertainty strengthen or depress cash holdings of oil enterprises? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 66(C).
    13. Ji, Qiang & Zhang, Hai-Ying & Zhang, Dayong, 2019. "The impact of OPEC on East Asian oil import security: A multidimensional analysis," Energy Policy, Elsevier, vol. 126(C), pages 99-107.
    14. Shao, Yanmin & Qiao, Han & Wang, Shouyang, 2017. "What determines China's crude oil importing trade patterns? Empirical evidences from 55 countries between 1992 and 2015," Energy Policy, Elsevier, vol. 109(C), pages 854-862.
    15. Vivoda, Vlado, 2019. "LNG import diversification and energy security in Asia," Energy Policy, Elsevier, vol. 129(C), pages 967-974.
    16. Sato, Masahiro & Kharrazi, Ali & Nakayama, Hirofumi & Kraines, Steven & Yarime, Masaru, 2017. "Quantifying the supplier-portfolio diversity of embodied energy: Strategic implications for strengthening energy resilience," Energy Policy, Elsevier, vol. 105(C), pages 41-52.
    17. Mohsin, M. & Zhou, P. & Iqbal, N. & Shah, S.A.A., 2018. "Assessing oil supply security of South Asia," Energy, Elsevier, vol. 155(C), pages 438-447.
    18. Yang, Yuying & Li, Jianping & Sun, Xiaolei & Chen, Jianming, 2014. "Measuring external oil supply risk: A modified diversification index with country risk and potential oil exports," Energy, Elsevier, vol. 68(C), pages 930-938.
    19. Yu, Zhen & Xiao, Yao & Li, Jinpo, 2021. "How does geopolitical uncertainty affect Chinese overseas investment in the energy sector? Evidence from the South China Sea Dispute," Energy Economics, Elsevier, vol. 100(C).
    20. Hao, Xiaoqing, 2023. "Import competition and pressure in the international crude oil trade: A network analysis," Resources Policy, Elsevier, vol. 82(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:228:y:2021:i:c:s0360544221007969. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.