Modeling on Oil-Importing Risk under Risk Correlation

As the world economic power and military strengthchange, a new round of contention for energy has started. What will be the sticking point is whether China can access to adequate oil resources safely in the new redistribution of energy resources which may impact China´s oil imports and energy supply in the future. Based on the Herfindahl-Hirschman Index, in this paper we propose an improved methodology applicable to evaluating the country risk that oil importing countries face. The OICR index for the world´s major oil-importing countries against 17 major oil-producing countries is calculated and analyzed, and then some suggestions about China´s oil importing strategy are given.