High dependence on imported oil troubles China

(Ecns.cn)—China's oil apparent consumption surged 4.5 percent year-on-year to 470 million tons in 2011, while consumption of crude oil is estimated to have increased 3.4 percent, reaching 454 million tons, according to a 2011 oil and gas industry development report released by CNPC Economics& Technology Research Institute Wednesday in Shanghai.

China's dependence on imported oil and crude rose to over 55 percent in 2011, and the rising trend continues. "China's dependence on imported oil surged dramatically, and the oil supply and demand situation is quite complicated," said Li Shousheng, standing vice-chairman of the China Petroleum and Chemical Industry Federation.

China mainly imports oil from the Middle East and Africa; imported quotas from the two areas are 51 percent and 24 percent respectively. Saudi Arabia, Angola and Iran are the three major players.

According to the development report, the country's dependence on imported oil may exceed 67 percent in 2020, and if the situation continues, the dependence rate will reach 70 percent by 2013.

In order to mitigate the situation, China needs to boost energy efficiency and speed up the development of unconventional oil and gas resources and deep sea oil exploitation technology to increase supplies, said Tong Xiaoguang, a researcher at the Chinese Academy of Engineering (CAE).