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Saturday, May 27, 2006

China’s present Oil scenario

Written by: S.M.Mehdi Hassan
Industrialization in China is growing at a rapid pace and the consumption of oil is increasing along with it. Chinese Oil experts are worried that such huge demand would risk China’s industrialization.

Zhu Jianjun, Director, Department of Development Research, China National Petroleum Corporation (CNPC), in an Energy forum said that by 2020 China’s oil consumption would rise to 500 million tons. Last year, the amount was 320 million tons and by 2010 it would become 380 million tons. The Energy forum was recently held in Beijing. In the forum Zhu said that he was not worried about the oil shortage rather with the uneven distribution of oil in the world market, which is creating huge risk. Zhu expected that by 2010 China’s oil import would increase by 190 million tons constituting 50% of the annual oil consumption. It would become 60% by 2010.

On the contrary, China’s domestic oil production will observe a steady increase from 2006 to 2010. The total output is expected to be around 185 to 195 million tons. According to Pan Derun, Deputy Chairman, China Petroleum and Chemical Industry Association, since1984 China has discovered oil reserves containing 800-900 million tons per year. At present there are 576 oilfields in the country.

No doubt that oil is the main source of energy in the present day world and the demand of oil is increasing day by day. I think from now China should focus on alternative power resources because oil may be very important but its price is increasing and it is causing serious pollution. This is the time to do research on alternative source of energy.



Useful Links:
http://english.eastday.com/eastday/englishedition/business/userobject1ai2058681.html
http://news.xinhuanet.com/english/2006-05/27/content_4609449.htm
http://www.forbes.com/markets/feeds/afx/2006/05/26/afx2775116.html

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