Trent Lott: “as we debate America's energy future, it is critical that we focus on the growing challenge to America's energy security…”

“as we debate America's energy future, it is critical that we focus on the growing challenge to America's energy security and ultimately to our way of life--posed by an overseas threat currently underway to acquire the world's limited energy resources. China's need for energy is growing rapidly, as China is now the second largest consumer of energy in the world. For all of 2005, it is forecasted that China will consume 7.2 million barrels of oil per day, and its demand could double by 2020 as its economy grows. At the same time, China produces very little of the energy it uses, and thus is forced to import almost all energy. In its quest for oil, China has become aggressive in brokering deals in every part of the world through its national oil companies. These companies are Government controlled, and unlike private companies are willing to accept lower rates of return with no concerns about a balance sheet. In short, our country's energy companies may soon find it difficult to compete against these Government owned energy companies in the global energy arena. These companies have access to abundant capital in national treasuries and none of the constraints of regulation faced by U.S. companies nor concerns about rates of return. Unfortunately, we have a very recent example of this. The China National Offshore Oil Company, CNOOC, has now made public the fact that it is seriously considering making a bid for a U.S. based company, Unocal.…”