By: Matthew R. Simmons President

IMMONS

& C

OMPANYINTERNATIONAL

China’s Insatiable Energy Needs

Table of Contents

Preface 4Background To China’s Energy Picture 7An Examination of China’s Economy 16China’s Population 19The Size Of China’s Economy 23The State Of China’s Economy 25Regional Differences In China’s Economy 27Background On The World’s Largest City 28Role Of Greater China/Overseas Chinese 30The Impact Of China’s Economic Investments 32China’s Economic Achilles Heels 34State-Owned Enterprises 35Chinese Morality 37Inflation 40How Fast Could China’s Economy Expand? 41The Successful Ingredients For a Country To Grow 46China’s Energy Supply 48China’s Coal And The Environment 49Alternatives To Coal: China’s Other Energy Options 53China’s Sleeping Tiger: Natural Gas 55China’s Oil Resources 58China’s Onshore Oil 59China’s Offshore Oil And Gas 62China’s Expansion Into International E&P 64

Projecting China’s Future Energy Needs 66Is The Past A Clue To The Future? 68The Conventional Wisdom Growth Models 71The Platform Economies: Hong Kong, Singapore and Taiwan 74The Impact Of China Changing Its Fuel Mix 75What The World And China Need To Do Next 81Building An Energy Bridge 87Appendix 90