Plan to secure oil supply, security

2007-12-26 21:52:00 Shanghai Daily

CHINA intends to secure more long-term crude oil supplies to reduce its reliance on volatile international markets, a white paper said yesterday, reaffirming that the nation will not threaten world energy security.

"It will, step by step, change the current situation of relying too heavily on the spot trading of crude oil, encourage the signing of long-term supply contracts with foreign companies, and promote the diversification of trading channels," said the paper, China's Energy Conditions and Policies, released by the State Council's Information Office.

The paper reiterated that China, the world's second largest oil consumer, is no threat to global energy supply, citing its low level energy consumption on a per capita basis.

Although demand has been rising quickly, China's per capita petroleum consumption is half the global average, while its per capita oil imports are only a quarter of the world's average - far below the level of developed nations.

"China did not, does not and will not pose any threat to the world's energy security," the paper stated.

"Energy security is a global issue. Every country has the right to rationally utilize energy resources for its own development and most countries cannot enjoy energy security without international cooperation," the paper read.

It said China will maintain its sustainable energy development and make positive contributions to global energy security.

As the world's second biggest energy producer, China has a relatively strong foundation for energy production and supply, the paper said.

China is accelerating its development of a modern energy industry, taking resource conservation and environmental protection as two basic state policies, the paper said.

"China is a responsible developing country and it attaches great importance to environmental protection and prevention of global climate change," it added.

China supports direct overseas investment by qualified domestic firms and encourages them to participate in international energy cooperation in fields like energy infrastructure and engineering technology and services, according to the energy paper.

The paper also said China will proceed with energy price reform and that it encourages foreign investment in certain sectors such as the development of unconventional energy resources.

It also urged that conflicts in oil-producing areas be solved by dialogue.