US calls on China to join global energy group, help stabilize oil markets.
A U.S. official urged China on Tuesday to join the International Energy Agency -- a group of major oil consumers that includes the United States and European governments -- and aid its efforts to keep petroleum markets stable in times of crisis.
"China's participation in the IEA's collective emergency response system would make the system stronger," Daniel S. Sullivan, an assistant U.S. secretary of state, said in a speech at a business conference.
China is the world's second-largest oil consumer after the United States. Its surging demand for energy to fuel its booming economy has stirred unease abroad about the possible impact on global prices, as well as over China's intentions as state-owned companies pursue access to supplies in Africa, Central Asia and elsewhere.
A key function of the 27-nation IEA is to coordinate the release of petroleum from national stockpiles to stabilize prices if crises threaten to disrupt supplies, Sullivan said. He said that was last done in 2005 in response to Hurricane Katrina in the United States.
"This helped calm oil markets, which clearly benefited the United States but also other major oil consumers like China," he said. "I believe it is important for China and other key economies in the world, such as India, to prepare to eventually join the IEA as full members." The conference was organized by the Institute for 21st Century Energy, a Washington think tank created by the U.S. Chamber of Commerce.
Sullivan, who is the American envoy to the Paris-based IEA, said the group has invited Beijing to take part in an exercise next month to practice responding to a possible emergency, and he urged the Chinese government to accept.
"China's involvement would benefit China and it would benefit the IEA," he said. "China might also consider a declaration that it plans to pursue membership in the IEA. This could help the anxiety expressed in some quarters over China's intentions as it pursues greater energy security."
The Chinese Foreign Ministry referred questions about whether Beijing might join the IEA to the Cabinet's National Development and Reform Commission, which oversees energy policy. The NDRC did not immediately respond to requests by phone and fax for comment.
China long met its energy needs from domestic oil fields but became a net importer in the 1990s. China is building a strategic oil reserve meant to help insulate it from possible disruption in foreign supplies. The United States maintains a similar stockpile. Beijing and Washington agreed in December as part of their long-range Strategic Economic Dialogue to cooperate in constructing and managing oil stockpiles.
Sullivan noted that a precondition for joining the IEA is membership in the Organization of Economic Cooperation and Development, a group of major economies, a status that China lacks. But he said the United States doesn't think that has to be mandatory for Beijing, given its importance in global energy issues. The IEA also includes Japan, Australia and South Korea.
A U.S. official urged China on Tuesday to join the International Energy Agency -- a group of major oil consumers that includes the United States and European governments -- and aid its efforts to keep petroleum markets stable in times of crisis.
"China's participation in the IEA's collective emergency response system would make the system stronger," Daniel S. Sullivan, an assistant U.S. secretary of state, said in a speech at a business conference.
China is the world's second-largest oil consumer after the United States. Its surging demand for energy to fuel its booming economy has stirred unease abroad about the possible impact on global prices, as well as over China's intentions as state-owned companies pursue access to supplies in Africa, Central Asia and elsewhere.
A key function of the 27-nation IEA is to coordinate the release of petroleum from national stockpiles to stabilize prices if crises threaten to disrupt supplies, Sullivan said. He said that was last done in 2005 in response to Hurricane Katrina in the United States.
"This helped calm oil markets, which clearly benefited the United States but also other major oil consumers like China," he said. "I believe it is important for China and other key economies in the world, such as India, to prepare to eventually join the IEA as full members." The conference was organized by the Institute for 21st Century Energy, a Washington think tank created by the U.S. Chamber of Commerce.
Sullivan, who is the American envoy to the Paris-based IEA, said the group has invited Beijing to take part in an exercise next month to practice responding to a possible emergency, and he urged the Chinese government to accept.
"China's involvement would benefit China and it would benefit the IEA," he said. "China might also consider a declaration that it plans to pursue membership in the IEA. This could help the anxiety expressed in some quarters over China's intentions as it pursues greater energy security."
The Chinese Foreign Ministry referred questions about whether Beijing might join the IEA to the Cabinet's National Development and Reform Commission, which oversees energy policy. The NDRC did not immediately respond to requests by phone and fax for comment.
China long met its energy needs from domestic oil fields but became a net importer in the 1990s. China is building a strategic oil reserve meant to help insulate it from possible disruption in foreign supplies. The United States maintains a similar stockpile. Beijing and Washington agreed in December as part of their long-range Strategic Economic Dialogue to cooperate in constructing and managing oil stockpiles.
Sullivan noted that a precondition for joining the IEA is membership in the Organization of Economic Cooperation and Development, a group of major economies, a status that China lacks. But he said the United States doesn't think that has to be mandatory for Beijing, given its importance in global energy issues. The IEA also includes Japan, Australia and South Korea.
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