Economic Analysis on Petroleum Consumption

With the real GDP growth of the world's three largest economies-China, USA and Japan as dependent variables while international petroleum price growth, proportion of petroleum consumption and dependence on foreign petroleum as independent variables, this paper will probe into the relationship between dependent variables and independent variables based on the econometric model. Upon the analysis, it shows that rising international oil price and heavy dependence on petroleum consumption exert a negative influence on China's GDP, but they have little effect or even a positive effect on USA's GDP and Japan's GDP, which illustrates that USA and Japan have been well rewarded by their investment and exploration of overseas petroleum resources for many years. Petroleum occupies one third of the global primary energy supply and is the world's largest energy. In terms of the supply and demand pattern, the world petroleum market pattern characterized by the separation of demand and supply sides has been formed while western countries control the global petroleum supply and developing countries become main demand-sides. The petroleum price fluctuation will threaten China's energy security.