Open Space and Land Use in Beijing (Automobile Ownership Explodes in China!)

University of Tokyo ^ | 2006 | DAPHNE GONDHALEKAR

[Recovering_Democrat]

...In 1985, privately owned cars were almost unknown in China. The number of motorized vehicles, however, multiplied 164-fold, from 2,328 in 1950 to 384,451 in 1990. Today, the number of privately owned automobiles in Beijing is approaching 3,000,000....(page 253 of the report)

[Recovering_Democrat]

Mark Juddery, a journalist from Australia, has reported the number of privately owned automobiles in Beijing alone has gone from 5,120 in 1990 to more than 3,000,000 in 2008.

If anyone tells you increased demand isn't responsible for driving up oil prices, and that we don't need to drill our own, show them this info.

[Slapshot68]

“If anyone tells you increased demand isn’t responsible for driving up oil prices, and that we don’t need to drill our own, show them this info. “

And some of them are right here on FR. While it’s not the only reason for high gas prices, it’s certainly a significant factor.

[21twelve]

There was some radio guy saying how when he visited Bejing a few years ago it was the standard movie scene with bikes EVERYWHERE. He said he was back there recently and the bikes are few and the CARS are everywhere.

The government also runs the gas stations and sells gas for something like $2.70 a gallon. It had been ~$2.40 a gallon a few weeks ago, and I had heard that they had hoped to keep it that price until after the Olympics to keep everything calm. I think the EQ demanded more fuel and the gov’t was in more of a bind so they raised it.

Interesting on how Supply and Demand even affects the commies!. And with that in mind - how long can China pay these subsidies?

[Brian S. Fitzgerald]

“And with that in mind - how long can China pay these subsidies?”

As long as it takes them to ruin us. then they will come in and buy our oil fields and other natural resources for petty cash.

[USFRIENDINVICTORIA]

It's good to see China and India becoming more prosperous. (Thanks to a move toward free-markets.) The more prosperous they are, the more of a stake they have in good relations with the West. I wish the people there well.

The resulting increased demand for oil is driving up prices. Prices won't come down until we acknowledge this new reality & allow the market to reach a new equilibrium. Legislated restrictions on new supply (no drilling, no nuclear power, no coal plants, etc.) are keeping prices high.

The Democrats, and their fellow-travelers in the so-called “environmental” organizations, want us to believe that evil speculators in oil futures are causing the high prices. They want us to scapegoat the speculators to distract us from the real culprits — themselves. To the eco-fascists, $5 gas isn't a problem — it's part of the solution.

[rusty millet]

Yeah, but let’s put this in perspective. There are probably 3 million cars in Atlanta. China has 3 million private cars in the entire nation.

[brushcop]

I will pay that $5 per gallon while bitterly clinging to the gun I ALWAYS have handy, reading my Bible on break. Now, if that’s not grounds for an ATF investigation, I don’t know what is!

Had an ATF agent say to an in-service class of various agencies: How many have an empty corner in your house? Raise your hands. Quite a few did, then he said, STAND A GUN IN IT!! LOL! I don’t know if he’s still wroking for that agency or not but he was “one of us” which some of the other agents clearly were miffed about...

[Prophet in the wilderness]

" And some of them are right here on FR. While it’s not the only reason for high gas prices, it’s certainly a significant factor. "
It's part of the whole pie that is causing the prices to go up... but, as most of us believe, it's the speculators.
You know ? we get the same argument from the Liberals about how even if we drill for oil on our own soil won't do any good, as the same argument they tell us about the missile defense system.... they say " it won't work, it won't do any good so why spend all that money ? "..... do you see a pattern here ?

[dragnet2]

The Communist Chinese have to do something with the billions of American dollars and Walmart money.

[Recovering_Democrat]

3,000,000 cars just in Beijing...plus growth in ownership in other places in China...plus the industry to create those cars...plus the productivity and energy used because of the movement of those cars. I think it means a lot more oil in only 18 years.

[Recovering_Democrat]

I hope you don’t take my attitude to be one of “not drill”. I think we MUST drill.

[Prophet in the wilderness]

It's ok... I understood what you were trying to convey..
We should have started drilling for our own oil decades ago..
This is just a dream, but, ? if the USA were to go hog wild in drilling and found enough to last for the next 200 years, and we have enough to sell back to the world market, wouldn't it be great we could sell enough to get our nation and government out of debt ? the 6 trillion + debt we have ? .... I know, I know, that is dreaming, and Congress would find plenty of ways to spend all that money.

[Chode]

i'd like to see the rate of growth in electric generators and tillers and small tractors... i think that area might grow even more/faster than cars

[cherokee1]

True enough, more or less, but it’s the growth that’s the problem. The Chinese themselves acknowledge this and along with vehicle growth they noted that they had to buy extra motor fuel in large quantities to help with recovery from the recent earthquakes. They are also buying extra because the rainy season, now started, is being severe. They are learning the risks of pegging the Yuan to the dollar, which is falling, and have hit a really awkward step in the 30 year old “great leap forward”.

[Recovering_Democrat]

bttt

[Zhang Fei]

The government also runs the gas stations and sells gas for something like $2.70 a gallon. It had been ~$2.40 a gallon a few weeks ago, and I had heard that they had hoped to keep it that price until after the Olympics to keep everything calm. I think the EQ demanded more fuel and the gov’t was in more of a bind so they raised it.

At current market prices, the subsidy costs China $150b a year. If the subsidy reduction hadn't been reduced, it would have cost the government over $200b a year. Other budget items would have had to be cut.

[Zhang Fei]

3,000,000 cars just in Beijing Beijing is over 3 times the size of Delaware, and 20 times the size of NYC. It's also got a population of 18m people. It's not that many cars, and most of them aren't cars in the American sense, given that they have engine sizes more appropriate for motorcycles (sub-1000 cc). Here's a sample.

[cmdjing]

Chinese refiners are right now paying about 72 centers per liter, or $2.72 per gallon, but this isn’t the retail price. Add in the markup from distribution, advertising, refiner profit (such as it is) and prices at the pump in China are higher by about roughly 50 cents. Even before June’s price hike, the retail price of gas was around $2.90 in Beijing.

The actual cost of sweet crude right now is about $3.38 per gallon or 89 cents per liter.

So China’s refiners are losing about $27.72 per barrel sold. At an estimated 8 million or so barrels per day, it works out to about 80 billion or so per year of losses. This is discounting any previously locked in supplier prices and also the fact that China still produces domestically about half of it’s total consumption. For every increase of $1 in crude oil prices, it is costing Chinese refiners nearly $3 billion per year in losses.

China really needs another 25% hike to bring prices back in line with the international average. The last hike occurred when oil prices were *merely* around $130 per barrel.

These high oil prices are pretty much putting the screws to China’s economy and pretty much every economy. Not good for the U.S. either but relatively speaking it hurts less. Saudi’s and the Russians are certainly making out like bandits though.

[ponder life]

Yeah, but let’s put this in perspective. There are probably 3 million cars in Atlanta. China has 3 million private cars in the entire nation.

The point of the article is the exponential growth of autos in China.

I don't know the number of PRIVATE cars in all of China (though I do believe it is more than 3 million), but I do know that the total number of MOTOR VEHICLES (cars, trucks, buses, etc., private and public) is about 60 million vs the US's 240 million. Economists project that China will surpass the US by 2030 in total number of vehciles. Though I personally believe, having followed China's economy for the last 20 years, it'll happen by 2020 :) And that annual sales as measured in units, will likely surpass the US by 2015.