China will boost the exploration for large oil and gas fields to
ensure the security of petroleum supply in the new century.
Tian Fengshan, Minister of Land Resources, said Thursday in Beijing
that China will select a number of the most prospective areas as
target oil exploration regions, and push forward the development of
petroleum resources.
At
China's first national symposium on the selection of strategic
regions of oil and gas resources, Tian said that China will focus
on the research of key energy base in the oil-rich Ordos Basin in
northwest China. A state level oil and gas resources data bank will
also be built.
China has listed petroleum, food and water as the three strategic
resources which have great influence on the sustainable development
of the economy and society, said Tian.
"If no effective measures are taken to strengthen petroleum
exploration, China will become more dependent on importing
petroleum and the risks to oil supply will be greatly increased,"
warned Tian.
He
said that China will increase investment in geological exploration,
research modern oil-detection theory and technology and expand the
exploration regions of oil and natural gas.
China's consumption of crude oil has grown at an annual rate of
nearly six percent over the past decade, while the growth rate of
crude oil supply was less than two percent during the same
period.
China's petroleum consumption exceeded 200 million tons in 2001,
ranking the third in the world after the United States and Japan,
and the figure by 2010 is estimated to reach 300 million tons.
China became a net importing country of petroleum in 1993. The net
import volume surpassed 65 million tons last year, accounting for
nearly 30 percent of the total oil demand that year.
Li
Yizhong, general manager of China
Petrochemical Corporation (Sinopec), China's biggest oil
producer, said that domestic oil makes up less than one third of
the total processing volume of Sinopec. The turbulence in the
international oil markets has restricted the development of his
corporation.
"Only when the exploration for new oil and gas resources is
strengthened, can the risks be reduced and competitiveness improved
for Sinopec," said Li.
He
suggested the government offer policy and funding support for risk
exploration, improve the utilization rate of petroleum resources
and reduce waste.
Great Potential in Oil Exploitation
Although the growth of China's oil production has slowed in recent
years, the country still has great potential in oil and gas
exploitation, Tian pointed out.
"As long as new exploration research, technology and systems are
adopted, we have reason to believe that new breakthroughs will be
made in petroleum exploitation therefore ensuring the safety of a
sustainable development," he said.
China has more than 500 oil-rich basins with about 150 evaluated.
According to a recent survey and evaluation, China's total
petroleum resource is estimated at 110 billion tons, and the total
volume of natural gas is about 53 trillion cubic meters.
At
present, only 28 percent of land petroleum and six percent of
natural gas had been explored, far below the world exploration
rate, said Tian.
"The exploration rate in the oil-rich basins in central and western
China is lower, which means there may be greater oil potential,"
Tian said.
He
added that compared with many other countries, China's exploration
of offshore petroleum was still at the beginning phase, and about
80 percent of oil resources were waiting for further
exploration.
Experts pointed out that the traditional key oilfields are nearing
exhaustion. More work was needed on the selection and long-term
survey for new petroleum resources.
During the four-day symposium, experts from the Ministry of Land
Resources, China National
Petroleum Corp., China Petrochemical Corp., China National
Offshore Oil Corp. and geological research institutes will help
offer scientific grounds for new petroleum exploration and seek
more support from the government.
( April 19, 2002)