Forecasting China's Role in World Oil Demand

Very interesting article. Snippet below:

"American oil consumers and oil producers should consider conditions in China as they contemplate their consumption and investment decisions. In particular, if both domestic and foreign oil producers are reluctant to invest now in exploration and development, they may be unable to expand quickly to meet a sharp increase in Chinese demand. If global supply cannot expand fast enough, oil prices will have to rise to balance the market, as they did in the early 2000s".



Source
http://www.frbsf.org/economic-resea.../forecasting-chinas-role-in-world-oil-demand/