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Business / Policy Watch

China outlines strategy for energy sector

(China Daily) Updated: 2014-02-15 08:04

Road ahead

"Rising risk for the energy transportation routes will pose new challenges which will be directly affected by geopolitical risks in the neighboring regions, the Middle East and Africa," he said.

Li also warned of the environmental challenge of increasing fossil fuel consumption. China's oil consumption will keep rising and reach 6 billion metric tons by 2020 and 8 billion metric tons by 2030 if it goes unchecked, putting pressure on the environment.

Li wants a "secure, green and efficient" system of energy production and use.

To secure supplies and avoid a sharp drop in energy self-sufficiency, China should explore new energy and natural gas, while stabilizing domestic oil production and moderately promoting oil made from coal, and the coal chemistry industry.

"Secure and effective" utilization of international resources requires China to set clear strategic goals to limit dependency on foreign oil and natural gas, he urged.

Li called for diversification of oil imports and less dependence on the Middle East as an oil supplier and the Strait of Malacca as a supply route.

Oil firms of oil-producing countries should be encouraged to invest in China's middle and downstream oil business, while Chinese firms should invest abroad in the upper and middle stream business such as refineries.

To increase oil reserves, companies of all kinds should be encouraged to participate in the oil reserve system. Building an oil futures exchange should be accelerated, Li added.

China should also save more energy, he advised.

China outlines strategy for energy sector

 

China outlines strategy for energy sector

 

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