Overseas Oil Cooperation between China and India Based on Crude Oil Trade Flow Analysis

Abstract

Globally, China and India are the second and third largest oil consumption and import countries, respectively. As the two countries' economies develop, their oil imports will gradually increase. The influence of India's future oil demand on China's access to overseas resources has been the focus of scholars both in China and overseas. Based on the analysis of oil consumption in China and India and the current status of the global crude oil trade, this paper analyzes the change in the overlap and concentration degrees of China's and India's crude oil importing sources from 2006 to 2015. The study shows that the competition over oil importing sources between China and India is mainly concentrated in eight countries (Saudi Arabia, Iraq, Iran, Venezuela, Kuwait, Brazil, the United Arab Emirates, and Angola) and that Africa and Central and South America will become important competitive regions for energy resources in the future. China and India import crude oil mainly from politically unstable countries and regions. In the future, the two countries should strengthen cooperation in seeking oil supplies from overseas to collaboratively safeguard stable oil supplies.