Executive Summary: 1. China and India are the second and third largest economies in Asia, respectively. Rapid economic development, industrialization, urbanization and improved lifestyles are driving the two countries? energy demand higher and making them increasingly reliant on world energy markets. 2. In comparison, the energy situation of China is better than that of India in terms of energy consumption structures, international reserve status, and quest for energy supply abroad. 3. Both countries currently rely on international markets for over half of the oil they consume. But India?s dependence on foreign oil has a longer history than that of China. 4. Although India has a longer record of promoting energy conservation, the current Chinese energy efficiency campaign under the leadership of the country?s top leaders is likely to generate more impressive results than the corresponding campaigns in India. 5. For both China and India, production overseas is an effective way to hedge against high oil crisis and ensure energy security. But it is believed that China is more successful than India in its oil investment abroad for a number of reasons. 6. Firstly, China has central energy authority in charge of formulating and adjusting its overall energy development strategy. There is no single central ministry for energy in India however. Instead, there are a number of ministries and groups that are responsible for policymaking related to various energy sources. 7. Secondly, Chinese National Oil Companies (NOCs) get more support from government and state-own banks. While crisis-hit international oil companies ii have been reining in their overseas expansion, China?s top oil giant CNPC has recently inked a US$5 billion financing deal with Kazakhstan?s state oil company KazMunaiGas. 8. China?s generous funding has taken other forms as well. Its banks have been making headlines for showering tens of billions of loans and funds on emerging markets in Africa, Latin America and Central Asia. 9 India pales in this regard; its NOCs receive no government support for their overseas investment. They evaluate investment areas and go into specific deals independently and with their own funds. 10. Thirdly, China?s energy diplomacy plays a more effective role in its energy quest abroad. These years saw China channeling diplomatic efforts into cultivating relations with oil and gas-exporting countries. Yet India?s energy diplomacy has been restricted by its conflicting interests that may indeed clash with its energy expansion efforts. 11. Lastly, India?s quest for energy supply is also being impeded by its sometimes tense relations with energy suppliers, energy transit countries and energy competitors. India needs to overcome more serious geopolitical and security challenges than China before it can realize its overland pipeline dreams.