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China Needs to Import Oil, Gas to Supplement Domestic Output
in-en.com  2007-5-2 13:23:23  

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China, the world's second-biggest energy consumer, will need to import ``suitable levels'' of oil and natural gas to supplement domestic production as demand rises, a top government official said.

The imports will serve as a ``necessary complement,'' Chen Deming, vice chairman of the National Development and Reform Commission, the country's top planner, said in Riyadh, Saudi Arabia today. China will be able to supply the nation's consumption through domestic production and energy conservation in the long term, he said.

China is encouraging its companies to explore for oil at home and abroad while boosting conservation to cut its dependence on fuel imports. The country imported a record 3.3 million barrels of oil a day in March as the economy expanded at a faster-than-forecast 11.1 percent in the first quarter.

``China has great potential in the development of energy resources,'' Chen said at the 2nd Asian Energy Ministerial Roundtable, a one-day meeting that focuses on the global outlook for oil demand and supply as well as energy security. ``We are promoting coal liquefaction, bio-ethanol and bio- diesel projects to cut our reliance on oil.''

China plans to reduce the energy used to generate each unit of its gross domestic product by 20 percent in the five years to 2010. The nation cut the amount of energy used for each unit of GDP by 1.23 percent last year, compared with a goal of 4 percent.

Each of China's 1.3 billion residents used 240 kilograms of oil in 2005, compared with the global average of 590 kilograms and the U.S. per-capita consumption of more than 3 metric tons, Ma Kai, chairman of the commission said in March. Japan used 1.9 tons for each inhabitant, he said.

Investment by Chinese oil companies overseas has increased overall global supply and is positive for the ``healthy development'' of the world's energy, Chen said.

Oil demand in China will increase 6.8 percent to 7.6 million barrels of oil a day this year, the International Energy Agency said in its April 12 forecast.


 
Author:Ying Lou  From:Bloomberg  Edit:inen
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