FPI / March 27, 2024
When it comes to China, does OPEC abide?
On March 19, the communist regime from China went to OPEC to plead for more oil and fast.
At the conclusion of the OPEC-China Energy Dialogue in Vienna, the oil producers vowed they would not walk away from China, regardless of market conditions. Will they keep that vow?
“China expects a robust 2024, and that requires energy, lots of it,” independent journalist Steve Rodan noted in a March 23 Substack.com analysis.
And that energy will be generated by fossil fuels.
“Unlike the United States and the European Union, China has no intentions of abandoning fossil fuels and embracing green energy,” Rodan noted. “Unlike Brussels and Washington, Beijing is not waging an economic and political war against Arab regimes.”
“OPEC and its member countries will continue to provide the affordable energy that China needs to meet its rising energy demand, with our interconnectedness in the sphere of energy underlining the strength of our relationship,” OPEC secretary-general Haitham Al Ghais said.
Rodan noted: “Al Ghais’ statement to the meeting requires clarification. What does ‘affordable energy’ mean when OPEC members want to keep the price of oil near $100 per barrel? How does Beijing expect the cartel to meet the former’s ‘rising energy demand’ without significantly ramping up production?”
The key to the OPEC statement, Rodan added, was the word “interconnectedness.”
“OPEC recognizes that China is not just another customer — albeit a giant one. Rather, Beijing is the strategic ally of most cartel members, whether in security, infrastructure and economy.”
As the statement put it, OPEC expressed “firm commitment to enhancing collaboration going forward, including at the technical and research levels.”
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