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As China's economy soared during the 1980's, its consumption of foreign oil rose as well, culminating in the country becoming a net importer of oil by 1993. Since this transition, China’s real gross domestic product has maintained annual growth at about eight to ten percent, with Beijing now holding the distinction of being the globe's third largest importer of oil behind the U.S. and Japan. China's consumption of oil is expected to steadily increase in the coming years, yet analysts predict domestic production will begin to decline by 2020.

China's current and ever increasing reliance on foreign oil has necessitated a broad search for oil reserves around the world. This search has led China increasingly to Latin America, where it recently signed large oil deals with...