| Summary: | China's economic rise is coupled with a growing need to find reliable foreign energy sources. China is the world's second largest oil consumer. China's demand for oil is outpacing previous estimates and accounted for 38 percent of the world's increased demand in 2006. Venezuela is the sixth largest oil producer and is now providing oil to China as a way to diversify exports away from the United States. As China's demand increases and global oil production wanes, China will become major a challenge for the United States. China will need strategic allies to be able to compete and will find a willing partner in Venezuela. The solution requires a new approach to international oil markets that removes politics from the sale of oil. A multilateral effort led by Japan has the greatest likelihood of success in a world that is becoming increasingly competitive over resources. Creating a framework that promotes cooperation before supply becomes limited is very important for success. If the three largest importers, United States, Japan and China, all work together, the likelihood of future war or severe economic shock over oil among the great powers will be diminished.
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