Abstract

China’s reemergence among the world’s leading economic and political powers has been one of the most defining changes in the international order since the end of the Cold War. Underpinning China’s ascent were the economic reforms instituted across the late 1970s and early 1980s that opened its economy to foreign direct investments. Preceding these reforms were the ambitions entertained for China’s continental shelf, optimistically forecasting it as nothing less than “the world’s richest petroleum reservoir.” This article will attempt to link these phenomena by examining the economic readjustment in conjunction with the capital- and technology-intensive requirements of the offshore oil industry. It will explore how petroleum knowledge was diffused between Norway and China: notably, how Chinese reformers abandoned the Daqinigst doctrine of self-reliance in favor of a hybrid Norwegian model of petroleum governance. Even though exploration efforts proved disappointing, the episode had both long-term political and commercial ramifications. It was during this often-overlooked episode of Chinese, international, and indeed Norwegian petroleum history that Norway’s national oil company, Statoil, took its first steps outside the Norwegian continental shelf and inspired the formation of China’s own national offshore oil company, China National Offshore Oil Corporation.

Highlights

  • In November 2021, China’s Communist Party passed its third historical resolution in its 100-year history

  • It was under these circumstances that a delegation from the Norwegian Water Resources and Energy Directorate (NVE), who in the spring of 1978 had visited China to consult on hydroelectric dam construction projects, was asked whether Norway could assist in developing China’s petroleum sector

  • The history of China’s offshore sector as one of dashed expectations and meager returns has served to obscure its political and commercial significance: It was the promise of wealth rather than wealth itself that exerted a transformative effect on the parties involved

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Summary

Introduction

In November 2021, China’s Communist Party passed its third historical resolution in its 100-year history. The failure of his ten-year plan, which relied heavily on increasing Chinese oil production along Daqingist lines, and insistence on Maoist orthodoxy led to his de facto ousting in December 1978.52 China had by the end of Hua’s time in power amassed the largest trading deficit for decades, and the petroleum exploration efforts in Bohai Bay and Western China had proven unable to stem the stagnation in domestic oil production.53 It was under these circumstances that a delegation from the Norwegian Water Resources and Energy Directorate (NVE), who in the spring of 1978 had visited China to consult on hydroelectric dam construction projects, was asked whether Norway could assist in developing China’s petroleum sector.. Bjartmar Gjerde to the Norwegian government, Notat til regjeringskonferanse September 3, 1980, Dc 0001, Bjartmar Gjerde’s Papers, Arbeiderbevegelsens arkiv og bibliotek

A Sino-Norwegian Petro-Rapprochement
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