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US to open energy office in China
(Agencies)
Updated: 2005-06-30 09:25

Amid rising tensions between the United States and China on oil supplies, the U.S. Energy Secretary will meet with Chinese energy officials Thursday and announce the opening of an energy office in Beijing, a senior department official said Wednesday.

U.S. Energy Secretary Sam Bodman, representing the world's largest energy user, will meet with officials from the National Development and Reform Commission of China, the world's fastest-growing user, Karen Harbert, assistant secretary for policy and international affairs, told Reuters in an interview.

Off the agenda is an offer by Chinese state-owned CNOOC Ltd. (Research) to buy U.S.-based Unocal Corp. (Research), which has rattled U.S. lawmakers and spurred numerous calls from Congress for the administration to review the deal.

"There are no individuals from CNOOC that will be attending the meeting and it is not on our agenda to discuss," Harbert said.

CNOOC's unsolicited bid trumped a roughly $16.4 billion offer from Chevron Corp. (Research) and coincides with record oil prices, unease over China's $160 billion trade surplus with the United States.

The U.S.-China meeting is the first in a program established last year by former energy secretary Spencer Abraham, and will focus on efficiency and renewable projects to reduce U.S. and Chinese energy demand, Harbert said.

"In recognition of the importance of our relationship the (Energy Department) has decided to open an office within the U.S. Embassy in Beijing," Harbert said. "It will help us to have real-time discussions."

The department hopes to have one or two staffers in place in Beijing by the end of the year, she said.

Officials will also discuss China's plans to build strategic crude oil stocks, she said.

China wants to store 100 million barrels of oil by 2008 in above-ground tanks, the equivalent to about 35 days of imports, according to the International Energy Agency (IEA).

Tanks being built on China's east coast city of Ningbo would hold about 33 million barrels.

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