Processing .....please wait.. 
The article has been forwarded.... 
What if India and China Collaborate?
By siliconindia
|
Wednesday, 07 December 2011, 02:20 IST
2. The binding of energy assets:
Both of Asia's rising powers desperately need energy. China today imports roughly half its oil. Consumption rose by 15 percent last year and is forecast to jump by an additional 9 percent this year. By 2025, China will burn through 14.2 million barrels a day, double this year's level, the U.S. Energy Dept. predicts. India's oil imports are expected to rise to some 5 million barrels a day by 2020, from around 1.4 million barrels at present reports Bloomberg BusinessWeek. See the way China outwitted India in Myanmar's Shwe gas project. In 2004, India's gas authority won the bid; but China leaned hard on the military junta to change the parameters, and wrested the deal. But of late, both countries are seeing plenty of merit in cartelising their purchases. China did not bid against India for Britain's Imperial Energy, and India returned the favour by staying away from Syria's Tanganyika Oil. Since China and India import 40 percent and 70 percent of their oil, respectively, the next step could be to pool their bids to maximise bargaining clout. Both would also like to join hands to kill the extra charge of $1-2 per barrel of oil, called the 'Asian Premium'.
