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CHINA EXPERIENCES GROWING PAINS -
In the coming months, due to a shortage of coal, China will face increasing power cuts. In fact, the power outages are expected to be the worst it has seen in more than four years. Because of the coal shortage, China has already been forced to close almost 60 power generators. Meanwhile, the cost of coal has spiked due to increased demand. Some say the price of coal could even double this year.
China generates almost 80 percent of its power from coal. It is the single largest coal consumer in the world, accounting for about one fourth of global usage. The power shortages have hit rural areas in central and northern China particularly hard. It has also negatively affected industry and farming. According to a Bloomberg report, Aluminum Corp. of China, the nation's biggest producer of metal, was forced to halt production at one of its facilities due to power outages. The closure pushed up the price of aluminum to a record high.
How Many Light Bulbs?
Here in the States, we tend to take our energy resources for granted. Take a moment and make a mental list of all the items in your home which require energy. That list could include a television, cell phone, computer, microwave, stereo, laundry machine, hairdryer, as well as various kitchen appliances and probably at least a dozen light bulbs. Think about how much energy you use in a single day. Now with that in mind, consider the following: according to some estimates the average Chinese household uses the equivalent of just one 100-watt light bulb per person per year.
That statistic is staggering, especially when you consider the potential demand. China's economy is booming, and it is estimated that China will triple its energy consumption between now and 2020. Many of China's 1.3 billion people live in rural areas where there is no electricity. However more and more people are moving to the cities and China's middle-class is growing fast. By the year 2020, the "consumer class" in China will have grown from less than 100 million people, to more than 700 million. As the middle-class grows, so will the amount of disposable income, and the demand for electronics and other consumer goods.
A Worldwide Trend
World demand for energy resources is growing. The demand for coal, oil, and natural gas is rising at an astounding rate. OPEC estimates that the world demand for oil will grow by 50 percent between now and 2030. This trend is widely attributed to rapid economic growth in countries like China and India.
China is transforming itself from an isolated communist nation into a growing superpower. In fact, if current trends continue, China's per capita income could match that of the United States by 2031. If the 20th century was the American century, then the 21st century will undoubtedly be the Asian century.
In the coming months, due to a shortage of coal, China will face increasing power cuts. In fact, the power outages are expected to be the worst it has seen in more than four years. Because of the coal shortage, China has already been forced to close almost 60 power generators. Meanwhile, the cost of coal has spiked due to increased demand. Some say the price of coal could even double this year.
China generates almost 80 percent of its power from coal. It is the single largest coal consumer in the world, accounting for about one fourth of global usage. The power shortages have hit rural areas in central and northern China particularly hard. It has also negatively affected industry and farming. According to a Bloomberg report, Aluminum Corp. of China, the nation's biggest producer of metal, was forced to halt production at one of its facilities due to power outages. The closure pushed up the price of aluminum to a record high.
How Many Light Bulbs?
Here in the States, we tend to take our energy resources for granted. Take a moment and make a mental list of all the items in your home which require energy. That list could include a television, cell phone, computer, microwave, stereo, laundry machine, hairdryer, as well as various kitchen appliances and probably at least a dozen light bulbs. Think about how much energy you use in a single day. Now with that in mind, consider the following: according to some estimates the average Chinese household uses the equivalent of just one 100-watt light bulb per person per year.
That statistic is staggering, especially when you consider the potential demand. China's economy is booming, and it is estimated that China will triple its energy consumption between now and 2020. Many of China's 1.3 billion people live in rural areas where there is no electricity. However more and more people are moving to the cities and China's middle-class is growing fast. By the year 2020, the "consumer class" in China will have grown from less than 100 million people, to more than 700 million. As the middle-class grows, so will the amount of disposable income, and the demand for electronics and other consumer goods.
A Worldwide Trend
World demand for energy resources is growing. The demand for coal, oil, and natural gas is rising at an astounding rate. OPEC estimates that the world demand for oil will grow by 50 percent between now and 2030. This trend is widely attributed to rapid economic growth in countries like China and India.
China is transforming itself from an isolated communist nation into a growing superpower. In fact, if current trends continue, China's per capita income could match that of the United States by 2031. If the 20th century was the American century, then the 21st century will undoubtedly be the Asian century.
