China`s Energy
Situation and Policy
Jiang Qingzhe & Xiucheng Dong
China University of Petroleum, Beijing
Speech Outline
1
China`s Energy Situation
2
Current Energy Policy in China
3
China`s Energy Policy Outlook
China`s Energy Situation
1
The rapid growth of total energy consumption
2
Constant improvement of supply capacity
3
4
5
The obvious contradiction about transportation of coal,
electricity and oil
The arduous task on energy-saving and emission reduction
Long way to go to maintain energy security
The rapid growth of total energy consumption
 China`s total energy consumption of standard coal was 2.96 billion tons
and per capita energy consumption was 2.38 tons of standard coal in
2011.
 The average annual growth rate of China`s energy consumption was
approximately a half of the economic growth rate from 1981 to 2000.
The total energy consumption of standard coal was 489.5 million tons in
1981 and it increased to 979 million tons in 2000. China planned to
doubled the current total energy consumption of standard coal within 20
years.
 The total energy consumption of standard coal had risen sharply since
2001 and it was 1.99 billion tons in 2008. We can see that it had been
doubled within only eight years. The energy consumption increment
from 2001-2008 was 2.1 times as much as that from 1981-2000.
Constant improvement of supply capacity
 In 2010, China's raw coal production reached over 3.0 million
tons; the transport volume reached 2.0 million tons; the import
volume achieved 146 million tons. In the meantime, the installed
power capacity reached 960 million kilowatts; the generating
capacity attained 4.14 trillion kilowatt-hour; the generating
capacity increased by 13.3%. Moreover, the crude oil production
was more than 200 million tons and it got an increase of 6.9%;
imports of crude oil was 239 million tons and it increased by
17.5%; the crude oil processing got to 423 million tons and it rose
by 13.4%; the apparent consumption was 449 million tons which
had an increase of 12.3%. Furthermore, about natural gas
production, there was 94.48 billion cubic meters and it increased
by 12.1%; LNG import volume reached 9.34 million tons in 2010
and it rose by 75%.
The obvious contradiction about transportation of coal, electricity and oil
 With the rapid economic development of our nation and the
constant weather abnormalities, the staged tension supply of energy
often occurs, which leads to the shortage of power, oil and gas in
some areas.
 Due to a serious imbalance in the areas of energy production and
consumption, the contradiction between transportation and
conveying will exit for a long time, so will the situation of North-toSouth coal transport, South-to-north Water Diversion, West-East
natural gas transmission, North-to-South oil transport and WestEast power transmission.
 The contradiction among coal, electricity, oil and transportation will
exit for a long time, which would be a long-term constraints to
China’s economic development.
The arduous task on energy-saving and emission reduction
 China's current total economic output is more than 30 million yuan,
ranking second in the world, per capita GDP5000 dollars, less than
half of the world average and less than 15% of the developed
countries; Urbanization rate is less than 44% and the population in
rural areas is 750 million; per capita car ownership is less than 30%
of the world average; per capita housing areas is ​only 60% of those
in developed countries; per capita electricity consumption takes
only 30% in developed countries’ level.
 China is going to achieve the 2050 target, however, if it continues the
industrialization path, even though energy efficiency has reached
the level of Japan and Germany, it also consumes 60 million tons of
coal, which is impossible from the perspective of the global
resources supply and the climate change.
Long way to go to maintain security
 In 2011, the crude oil production was 203 million tons altogether,
increasing by 1 percent compared with last year with the increasing
rate dropping by 5.9 percent compared with 2010. In the meanwhile,
the natural gas production was about 1,025.3 billion cubic meters,
increasing by 6.9 percent compared with last year with the increasing
rate dropping by 5.2 percent compared with 2010. Simultaneously, the
refined oil production reached 267 million tons, increasing by 5.9
percent compared with last year with the increasing rate dropping by
3.8 percent compared with 2010.
 The degree of security about overseas oil sources in our country is low.
It is not easy to stabilize supply capacity in long-term.
 China use single mode to transport energy from overseas, so the ability
to control the transport corridors of international energy is still
relatively poor.
 The "going out" strategy for China`s oil companies is restricted by
multi-pressures. The relationship with the neighborhood is complex
and changing. Therefore, our territorial sovereignty is being
challenged.
Current Energy Policy in China
1
Give priority to conservations and improve efficiency
2
Base on coal and pay attention to domestic market
3
Focus on oil and gas and advocate diversified development
4
Increase investment and promote technological innovation
5
Create friendly environment and reduce emissions
6
7
Strenghen international cooperation and realize mutual benefit
Implement reform and improve the mechanism
Give priority to conservations and improve efficiency
 Adjust the economic structure and transform the mode of economic
growth.
 A c c e l e r a t e t h e p ro c e s s i n g o f e n e r g y - s a v in g t e c h n o lo g y
industrialization and standardization, transform and upgrade
traditional industries.
 Set energy saving targets, strictly control the development of high
energy-consuming industries, and speed up elimination of outdated
production capacity.
 Improve and adjust to energy prices and tax policies.
 Improve energy efficiency standards and strengthen energy key areas.
hundred million tons standard coal
亿吨标准煤
75
线性增长
一般趋势
节能优先
Linear growth
General trend
priority to energy saving
65
55
45
35
25
15
1990
2000
2010
2020
5
2030
Base on coal and pay attention to domestic market
 Develop coal industry orderly; improve efficient, clean, and sustainable
development of coal.
 Optimize the structure through restructuring, mergering and integration of
existing coal resources.
 Establish large-scale coal production bases to accelerate high-yield and efficient
mine construction, develop coal liquefaction and gasification industry orderly
and encourage gas drainage and utilization.
 Improve coal supply and marketing system, improve the coal price formation
mechanism.
Focus on oil and gas and advocate diversified development
 Develop the onshore and sea simultaneously. Tapping the potential of the eastern,
accelerate the development of the western and expanse the offshore oil field to
ensure steady growth.
 Vigorously develop the natural gas industry to speed up the construction of the
pipeline network and expand import channels. Import natural gas from Russia
and the Central Asian pipeline and import coastal liquefied natural gas.
 Focus on optimizing the thermal power, moderate hydropower development and
actively develop nuclear power.
 Develop new energy and renewable energy trying to adjust the energy structure.
Focus on oil and gas and advocate diversified development
20%
15%
15%
10%
10%
7.5%
5%
0%
2005
2010
2020
可再生能源在一次能源消费中的比例
renewable energy source ratio
Focus on oil and gas and advocate diversified development
renewable energy source power generation(kilowatt)
TIME
2005
2010
2020
hydropower
0.117 billion
0.19 billion
0.3 billion
biomass power
generation
2000 thousand
5500 thousand
30000 thousand
wind power
generation
1260 thousand
5000 thousand
30000 thousand
Increase investment and promote technological innovation
 Promote key technologies: exploration and development technology for
complex geological oil and gas resources, efficient development technology
for low-grade oil and gas resources, clean coal technology, gasification and
processing and conversion technology, the third-generation pressurized water
reactor nuclear power technology, alternative energy technologies, large-scale
renewable energy technologies, UHV transmission technology, grid security
technologies, etc.
 Enhance the level of equipment manufacture: coal mining equipment, largescale coal chemical equipment, efficient and clean power generation
equipment, drilling and production equipment for oil and gas exploration
and development, transportation equipment, etc.
 Strengthen frontier technology research and conduct basic scientific research.
First, pay attention to technology research and get early preparations.
Second, carry out research and development at the same time track actively.
Include: hydrogen energy systems, gas hydrates, controlled nuclear fusion,
etc.
Create friendly environment and reduce emissions
 To prevent and govern the destroy of the ecosystem and pollution of the
environment: with the development of using the clean energy as the
focus, and we should manage the coal mining subsidence area, develop
and utilize coal-bed gas, and establish the mechanism of exploration of
coal resources and ecological environment restoration and compensation.
 Comprehensive control of greenhouse gas emissions: vigorously develop
the circular economy, promote the comprehensive utilization of resources
and the utilization efficiency of the energy and resource, propose the
emission reduction targets to the world and cogently reduce greenhouse
gas emissions.
 Actively control the vehicle exhaust pollution: improve and strictly carry
out the motor vehicle emission standards, adhere to the system of annual
inspection, encourage the production and utilization of clean fuel vehicle
and hybrid electric vehicle and develop the rail transportation and
electric buses.
Strenghen international cooperation and realize mutual benefit
 Actively participate in the international energy cooperation mechanism:
APEC energy working group, ASEAN energy cooperation, International
Energy Forum, World Energy Congress, the Asia-Pacific Partnership on clean
development and climate and other organization formal member; the Energy
Charter observer; to establish close relations with the International Energy
Agency and the organization of the petroleum exporting countries; to
establish energy dialogue and cooperation mechanism with the United States,
Japan, the European Union, Russia and other countries.
 Refine the international cooperation of oil and gas resources exploration and
development : revise the regulations with foreign about offshore and onshore
oil and gas resources ,encourage the foreign investment in the exploration
risk, low permeability oil and gas field development, improving oil recovery of
old oil fields, oil and gas pipelines, pools and wharf construction and
management.
 Optimizing the environment for foreign investment , expand the fields of
foreign investment, encourage foreign investment in the exploration and
development of unconventional energy resources, invest and operate of power
energy facility.
 Encourage large energy enterprise to go out and participate in international
energy market actively.
Implement reform and improve the mechanism
 Strengthen energy legislation: Promulgate Cleaner Production
Promotion Law, Renewable Energy Law, Energy Conservation Law,
Oil and Natural Gas Pipelines Protection Law. Formulate Energy
Law, Circular Economy Law, building energy conservation
regulations. Revise Mineral Resources Law, Coal Law and the
Electricity Act.
 Strengthen production safety and perfect the emergency response
system: Implement the responsibility system for production safety,
execute the safety standards strictly and implement accountability
system seriously. Put unified scheduling, hierarchical management
and partition runs into practice for electricity to create an oil reserve
base and improve the reserve capacity.
 Accelerate the construction of the market system, promote the reform
of the price mechanism, and deepen the reform of the management
system.
China`s Energy Policy Outlook
1 Continue to develop and improve the energy planning
2 Use tax leverage to adjust the energy consumption
3 Continue to encourage technology innovation on energy
4 Continue to improve the price mechanism of energy
5 Continue to improve and perfect the energy laws and egulations
6 Continue to expand the international energy cooperation
Continue to develop and improve the energy planning
Develop, improve and
adjust the plan
Improve the scientific
nature of planning
Focus on key areas
and key projects
Use tax leverage to adjust the energy consumption
Tax lever adjustment
Encourage the development of new energy and renewable energy
Encourage the development of electric vehicle
Encourage the development of hybrid vehicle
Encourage electric bus and rail transit
Encourage the development of coal-bed methane
Encourage the exploration and development of unconventional energy
Inhibit excessive energy consumption
Continue to encourage technology innovation on energy
Driving force of technological innovation
Exploration and development technology for complex geological oil and gas resources
Smart grid technology
Clean coal and nuclear power technology
New energy and renewable energy development technology
Continue to improve the price mechanism of energy
Price adjust consumption
Perfect the oil price formation mechanism
Release the price reform program of natural gas
Introduce the reform program of stepped tariff
Continue to improve the electricity and coal price reform
Perfect the energy transportation price system
Establish and improve the mechanism of price subsidies
Continue to improve and perfect the energy laws and regulations
Create fair environment
Enact the Energy Law
Revise the Mineral Resources Law, Coal Law and the Electricity Act
Legislate the Oil and Nature Gas Law
Formulate oil market management regulations
Formulate petroleum reserve act or regulations
Fulfill the new 36 terms from State Council
Continue to expand the international energy cooperation
Safeguard
Safeguard
energy
energy
supply
supply
Encourage large energy enterprises to go abroad
Strengthen cooperation with countries with resources
Strengthen cooperation with consumer countries
Cooperation with the International Energy Agency
Cooperation with the Organization of Petroleum Exporting Countries
Strengthen energy cooperation mechanism with surrounding countries