RISK MANAGEMENT OF TRANSNATIONAL EXPLOITATION OF CHINA''''S DEFICIENT NATURAL RESOURCES--A CASE STUDY OF OIL RESOURCE
中国短缺资源跨国开发的风险管理--以石油为例

As one of China's deficient natural resources, oil is a very important strategic natural resource. Exploitation of overseas oil is a very important component part of the policies that utilize of both domestic and overseas natural resources. Transnational investment in petroleum industry has to face many risks, including politic and economic risks. Based on the definition and valuation of risks of oil transnational exploitation, this paper focuses on the valuation of politic and economic risks, and puts forward the six models for development of overseas oil: 1) Cooperation with oil companies of host country; 2) Cooperation with experienced transnational oil companies; 3) Signing service contract; 4) Establishing joint-venture company; 5) Purchasing oil reserves; 6) Obtaining transferred share holding of oil exploration. Finally, this paper puts forward the countermeasures for management of political and economic risks. To avoid political risk, detailed planning should be made before investment. After investment the manager should adjust the business policy. To avoid economic risk, the manager should adjust business planning based on the economic policy changes of the host country. The risk of oil price fluctuation can be avoided by oil future market, and the risk of exchange rate fluctuation can also be avoided by monetary market.