(Yicai Global) March 13 -- China is becoming ever more reliable on imported oil and demand could top 600 million times for the first time this year as the country comes to depend on external supply for 70 percent of its oil.
Demand could reach as high as 615 million tons, Ma Yongsheng, deputy general manager of China Petroleum & Chemical Corp. and a member of the Chinese Academy of Engineering, told Science and Technology Daily.
China used 590 million tons of oil last year as consumption rose to the fastest pace since 2011. Domestic production was below 200 million tons for the second straight year as net import jumped almost 11 percent to 396 million tons, giving a reliance rate of 67.4 percent.
Forecasts suggest that from 2025, the bulk of China’s additional oil and gas reserves will be unconventional resources, such as tight and shale oil and gas and coal-bed gas. As these are large in volume but not so economic, tax policy will need to support production. China should provide incentives to businesses to encourage them to explore unchartered territory, Ma said.