US-China Commission Report - Fatal System Error

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A growing share of energy demand comes from China’s growing
transportation sector. That sector was responsible for 29.8 percent
of China’s total petroleum consumption in 2005, and this consumption
is expected to increase to 47 percent in 2030. In 2020, the
transportation sector will consume 6 million barrels of oil per
day. 10 As Chinese society becomes more affluent, many Chinese
people are seeking to use their wealth to purchase cars. As a result,
China has become the world’s second-largest vehicle market
and the third-largest vehicle producer. 11 This growth is projected
to increase as China’s economy grows and the nation’s population
becomes increasingly urbanized. The IEA predicts that by 2030,
more than half of China’s oil consumption will fuel the transportation
sector. 12
The Composition of China’s Current Energy Demand
Coal supplies approximately 63 percent of China’s energy consumption,
and China is the largest coal consumer in the world.
Coal-burning power plants supply 80 percent of China’s electricity.
13 Nearly 19 percent of China’s energy demand is met
with petroleum products, and China’s consumption of 7.2 million
barrels per day in 2006 ranks second in the world behind U.S.
consumption. 14 In addition to consuming coal and oil, China uses
natural gas, renewable energy, and nuclear energy. Collectively
they supply the remaining 19 percent of China’s energy demand.
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