China's monthly oil imports hit a record high of 13.46 million tons in September, up 24 percent year-on-year, according to the latest customs statistics. As worries about the impact on oil supplies of events like terrorist attacks or natural disasters recede, and speculative funds downgrade their activity in the futures market, world oil supplies have been rising and crude oil prices have begun to decline.

China accounts for only 6.7 percent of total world imports of crude oil. According to the BP Statistical Review of World Energy 2006, the United States imported 500.7 million tons of crude oil in 2005, 26.6 percent of the world total, and Japan, the second largest oil importer, imported 210.4 million tons of crude oil or 11.2 percent of the total.

As for consumption volume, China consumed 327.3 million tons of crude oil last year, accounting for 8.5 percent of the world total and only one-third of the consumption of the United States, which is 24.6 percent.

Nevertheless, the Chinese government is alarmed by the country's soaring energy needs, triggered by more than two decades of rapid and sustained economic growth, and is taking steps to curb oil consumption and raise energy efficiency.

In the 11th Five-Year (2006-2010) development program, which will guide the country's economic and social development in the coming five years, China has set a goal of 20 percent less energy consumption by 2010 compared with the end of 2005.

According to the program, from 2006 to 2010, China will try to meet its energy demands mainly from domestic supplies, and will make coal the main source of energy.

The country will also focus on energy efficiency and develop more new energy sources. China produced 2.19 billion tons of coal and 180.8 million tons of oil in 2005, with domestic production meeting over 90 percent of its energy demands.

1

2

(For more biz stories, please visit Industry Updates)