China and the Global Energy Crisis

China and the Global Energy Crisis

Development and Prospects for China’s Oil and Natural Gas

Tatsu Kambara and Christopher Howe

This book examines China’s record of oil and gas development, its refining capacity, and energy prospects. The authors conclude that there are no fundamental reasons for anxiety about China’s demands on the world energy economy, but they emphasize that its energy future will depend critically on a continuation of reform and internationalization. China and the Global Energy Crisis is a concise but detailed study of these issues.

Chapter 6: Refining and Distribution

Tatsu Kambara and Christopher Howe

Subjects: asian studies, asian development, asian economics, asian innovation and technology, asian politics and policy, development studies, asian development, economics and finance, asian economics, energy economics, environmental economics, environment, asian environment, environmental economics, innovation and technology, asian innovation, politics and public policy, asian politics


6. Refining and distribution REFINERY RESOURCES AND PROSPECTS China’s oil refinery capacity in 2005 had reached 270 mmt of crude oil per annum. This is a large figure, exceeded only by the refining capacity of the USA and Japan. In the same year China’s production of crude oil and consumption of petroleum products were 181 mmt and 317 mmt respectively. We see, therefore, that not only was China’s refinery capacity significantly below that needed for domestic self-sufficiency, but much capacity was also being used to refine crude oil imports. As we have seen, on present estimates of domestic output it is likely that China’s imports of crude oil and oil products will need to rise to 138 mmt and 48 mmt respectively by 2010, lowering the oil self-sufficiency rate to 46 per cent as compared to 71 per cent in 2000. The sources of these imports will have an important bearing on plans for the refinery sector. In the year 2000, the first and second largest sources of imports to China were Oman and Angola. These supplied 22.2 per cent and 12.3 per cent of total imports respectively. Iran and Saudi Arabia took the next two places with shares of 10 per cent and 8.2 per cent. Of these sources, crude oil from the first two are low in sulphur content, while the latter are high-sulphur oils. If we consider also the contributions of Indonesia, Vietnam and the North Sea, we...

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