With significant increases in oil demand and imports triggered by vigorous economic growth, China has grown to become an important player affecting the international oil market. This rapid economic growth together by facing serious power supply shortages, China is estimated to lead the market from a15 to 18 percent increase of fuel oils this year. This study analyzes recent trends in and conditions of the supply and demand situation and the Gross Domestic Product (GDP) in China.After the Fifth National Oil Commerce and Trade Conference held recently in China, the government has taken measures to control the overheated economy growth that cannot be slowed down in a short period of ti ...view middle of the document...
The Chinese government forecasts in the tenth five-year plan (2001-2005) that primary energy consumption will increase at an average annual rate of approximately 3-4 percent. The International Energy Agency (IEA), Energy Information Administration (EIA) of the U.S., and other organizations expect energy consumption in China to steadily increase at an annual rate of approximately 3 percent for the next ten to twenty years (International Energy Agency [IEA], 2004). Subsequently, China should properly handle the increasing energy demands, which will expand the gap between the demand and supply of energy and increase imports, in conjunction with its economic growth.Oil Supply and DemandOil consumption in China has steadily increased, from 2.25 million in 1990 to 4.88 million in 2001, at an average annual rate of 7.3 percent according to the BP Statistical Review of World Energy 2002, China's energy consumption reached 840 million in 2001. The demand increase has been led specifically by gasoline and diesel oil, the annual consumption of which was 35.48 million tons as of 2001. As for the growth rate of oil demand in China, the "World Energy Outlook 2001" of IEA estimates an annual average of 4.4 percent for 1997-2020 (China Chemical Reporter [CCR], 2004).As oil demand in China greatly increases, the oil market in East Asia (comprised of Japan, China, Korea, and Taiwan) will also grow to be the largest crude oil import market in the world. With the expected increases in its energy and oil demands, as well as in its ...
