Modeling of Oil Consumption in China: Prospects for Russia
Abstract
To strengthen economic position at the world arena, Russia has to increase its presence in the Asia-Pacific region. To evaluate the prospects for Russian oil exports to the East, we need to determine key factors affecting demand for crude oil in Asian countries — major oil consumers. In this paper, we analyze oil consumption in China, leading oil importer with the highest GDP in the region. We made an analytical review of the crude oil market, identifi ed and analyzed with econometric methods principal factors forming the demand for oil in the country. We concluded that China’s economy is dependent on oil imports due to increased volumes and technological development of production. If keeping Russia’s contribution in China’s crude oil imports, oil supplies to China may rise by almost 40% by 2020, and twice by 2030 compared to 2012. China can be regarded as a constant strategic partner of Russia at the oil market. Refs 16. Figs 7. Tables 3.
Keywords:
oil, oil consumption, China, factors affecting oil consumption, econometric analysis
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Articles of the St Petersburg University Journal of Economic Studies are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.