China Steps Up Efforts in Oil Reserve
Sunday, July 5th, 2009
Dylan Sun asked:
As the United States considers attacking Iraq, pushing the oil prices higher, China has again focused on the stabilization of its oil supply. Its plans to prevent disruptions to its oil reserve, according to a recent report by China Daily. Analysts said China pulled out to encourage the Russian Government - which does not want to see foreigners take over the firm - to push through a 2,200 kilometer Russia-China oil pipeline. The oil link could allow China to tap into its neighbor’s rich oil reserves to make sure the China’s oil reserve.
In recent years, China has experienced an increasingly volatile situation in terms of oil reserve, as demand continuously outpaces domestic output. According to Han, China’s annual domestic consumption will hit 300 million tons by 2010, while the IEA expects it to reach 523 million tons. By then, Han said, the net imports will reach 150 million tons. In other words, half of China’s oil reserve will be imported.To help secure its oil reserve, the government is scrutinizing its plans for strategic oil reserves, and “strives to implement them soon,” Han said. Some officials have also been calling for a special committee to direct the programme. Still, several uncertainties may slow down implementation of the plan, insiders have said. High prices, however, will not curb China’s appetite for overseas oil reserves, since the country has been a net importer since 1993, especially the oil reserve.
The government has listed Central Asia and Russia, the Middle East and North Africa, and South America as “three strategic regions” for domestic companies to access. Zhu Xingshan, an oil analyst with the Energy Research Institute of the SDPC, said Central Asian countries and Russia are first priorities for the expansion plan. “These countries see the oil industry as vital for the revival of their economies, but they need foreign companies to help tap their rich oil reserves, or the domestic oil reserve won’t be satisfied.” said Zhu.
“China has been developing friendly relations with these countries, not only to regulate the oil reserve but to help Chinese companies compete favorably with Western companies,” Zhu said. “In the long run, the Middle East region is still our most important import source. But we need to diversify,” Zhu added.
“Overseas operations make up 60-70 per cent of the total business of a global giant like ExxonMobil,” said Ma Fucai in a recent news briefing. “Over the long-term, we are working towards that goal.” It is aslo hoped that bilateral oil reserve will be met.In this issue of the construction oil reserve Han said China should also actively take part in energy co-operation in the region, especially with neighboring countries like Japan and South Korea which are big oil consumers. Officials said the government is developing financial and taxation policies, including a State special fund, to encourage the companies’ overseas exploration. With the various help, it is hoped that the oil reserves will be harmonized.
Delores
As the United States considers attacking Iraq, pushing the oil prices higher, China has again focused on the stabilization of its oil supply. Its plans to prevent disruptions to its oil reserve, according to a recent report by China Daily. Analysts said China pulled out to encourage the Russian Government - which does not want to see foreigners take over the firm - to push through a 2,200 kilometer Russia-China oil pipeline. The oil link could allow China to tap into its neighbor’s rich oil reserves to make sure the China’s oil reserve.
In recent years, China has experienced an increasingly volatile situation in terms of oil reserve, as demand continuously outpaces domestic output. According to Han, China’s annual domestic consumption will hit 300 million tons by 2010, while the IEA expects it to reach 523 million tons. By then, Han said, the net imports will reach 150 million tons. In other words, half of China’s oil reserve will be imported.To help secure its oil reserve, the government is scrutinizing its plans for strategic oil reserves, and “strives to implement them soon,” Han said. Some officials have also been calling for a special committee to direct the programme. Still, several uncertainties may slow down implementation of the plan, insiders have said. High prices, however, will not curb China’s appetite for overseas oil reserves, since the country has been a net importer since 1993, especially the oil reserve.
The government has listed Central Asia and Russia, the Middle East and North Africa, and South America as “three strategic regions” for domestic companies to access. Zhu Xingshan, an oil analyst with the Energy Research Institute of the SDPC, said Central Asian countries and Russia are first priorities for the expansion plan. “These countries see the oil industry as vital for the revival of their economies, but they need foreign companies to help tap their rich oil reserves, or the domestic oil reserve won’t be satisfied.” said Zhu.
“China has been developing friendly relations with these countries, not only to regulate the oil reserve but to help Chinese companies compete favorably with Western companies,” Zhu said. “In the long run, the Middle East region is still our most important import source. But we need to diversify,” Zhu added.
“Overseas operations make up 60-70 per cent of the total business of a global giant like ExxonMobil,” said Ma Fucai in a recent news briefing. “Over the long-term, we are working towards that goal.” It is aslo hoped that bilateral oil reserve will be met.In this issue of the construction oil reserve Han said China should also actively take part in energy co-operation in the region, especially with neighboring countries like Japan and South Korea which are big oil consumers. Officials said the government is developing financial and taxation policies, including a State special fund, to encourage the companies’ overseas exploration. With the various help, it is hoped that the oil reserves will be harmonized.
Delores
