At 3 pm on March 11th, the 11th session of the National People's Congress held its fourth plenary session at the Great Hall of the People in Beijing to hear a statement by State Councilor and Secretary-General of the State Council Huajian Min on the reform plan of the State Council. One of the major tasks of the State Council’s institutional reforms this time was to strengthen energy management agencies: the establishment of a high-level coordinating agency, the National Energy Commission, and the establishment of the National Energy Administration, to be managed by the National Development and Reform Commission. With regard to the starting point of this reform, the answer of the person in charge of the China Development Office is: Energy issues are related to national security.
In recent years, with the rising energy demand, China has become the world’s second largest energy consumer. In 2007, China's total energy consumption was 2.65 billion tons of standard coal, an increase of 7.8% over the previous year. Among them, crude oil consumption was 340 million tons, an increase of 6.3%; natural gas consumption was 67.3 billion cubic meters, an increase of 19.9%. At the same time, China’s energy consumption per capita is very low. For example, the per capita resource of petroleum is only 11% of the world’s average, and the per capita natural gas resources of natural gas are less than 5% of the world’s average. Therefore, China only depends on a large number of imports to meet the growing demand for energy. In 2007, China’s oil imports were close to 200 million tons, and the foreign dependence was as high as 50%. The energy issue has become an important factor that restricts China’s economic and social development.
With the continuous rise of international oil prices, the importance of energy issues in China has gradually increased. The “Eleventh Five-Year Plan†issued in early 2006 proposed a binding indicator that the energy consumption per unit of GDP by 2010 should be reduced by 20% on the basis of 2005. The "Energy Conservation Law" revised and adopted on October 28, 2007 is even more fundamental for ensuring the conservation of resources as a basic national policy. It also clearly states that "the state will implement energy conservation and development and give priority to energy conservation." This time, the State Council’s institutional reforms indicate that the national energy strategy decision has been elevated to a more prominent strategic position.
It can be predicted that compared with the existing energy management model, the reformed energy management agency will be given higher authority, and it will also further promote the specific implementation of the energy development strategy. The energy and consumption reduction of the petroleum and chemical industry is even more urgent.
The petroleum and chemical industry is a high-energy-consuming industry. Among the 1,000 key energy-saving companies identified by the country, there are 340 oil and chemical companies, accounting for 1/3 of the total. Energy costs account for a large proportion of product costs. Energy consumption costs for high-energy products account for 60% to 70%, and energy costs for general products account for 20% to 30%. Among them, the energy consumption of the five high-energy-consuming industries such as nitrogen fertilizer, soda ash, caustic soda, calcium carbide, and yellow phosphorus accounts for about 60% of the total energy consumption of the industry. Through the hard work of the entire industry, in the first three quarters of 2007, the unit energy consumption of the six key energy-consuming industries in the petroleum and chemical industries showed an overall decline. Among them, the comprehensive energy consumption of the caustic soda industry decreased by 3.6%, the comprehensive energy consumption of the ethylene industry decreased by 2.9%, and the integrated energy consumption of the crude oil processing, soda ash, and calcium carbide industries decreased by 1.9% year-on-year, respectively, and the comprehensive energy consumption of the ammonia industry decreased by 1.8%.
Although the energy conservation and consumption reduction work in the oil and chemical industry has achieved certain results, it is necessary to fully realize the “Eleventh Five-Year Plan†energy-saving goals. The petroleum and chemical industries need to work hard. The strengthening of energy management agencies will also give guidance and support to the energy and consumption reduction of the petroleum and chemical industries. It is believed that under the joint efforts of the government and enterprises, China will surely be able to successfully weather the energy crisis, ensure energy security and safeguard national security.
In recent years, with the rising energy demand, China has become the world’s second largest energy consumer. In 2007, China's total energy consumption was 2.65 billion tons of standard coal, an increase of 7.8% over the previous year. Among them, crude oil consumption was 340 million tons, an increase of 6.3%; natural gas consumption was 67.3 billion cubic meters, an increase of 19.9%. At the same time, China’s energy consumption per capita is very low. For example, the per capita resource of petroleum is only 11% of the world’s average, and the per capita natural gas resources of natural gas are less than 5% of the world’s average. Therefore, China only depends on a large number of imports to meet the growing demand for energy. In 2007, China’s oil imports were close to 200 million tons, and the foreign dependence was as high as 50%. The energy issue has become an important factor that restricts China’s economic and social development.
With the continuous rise of international oil prices, the importance of energy issues in China has gradually increased. The “Eleventh Five-Year Plan†issued in early 2006 proposed a binding indicator that the energy consumption per unit of GDP by 2010 should be reduced by 20% on the basis of 2005. The "Energy Conservation Law" revised and adopted on October 28, 2007 is even more fundamental for ensuring the conservation of resources as a basic national policy. It also clearly states that "the state will implement energy conservation and development and give priority to energy conservation." This time, the State Council’s institutional reforms indicate that the national energy strategy decision has been elevated to a more prominent strategic position.
It can be predicted that compared with the existing energy management model, the reformed energy management agency will be given higher authority, and it will also further promote the specific implementation of the energy development strategy. The energy and consumption reduction of the petroleum and chemical industry is even more urgent.
The petroleum and chemical industry is a high-energy-consuming industry. Among the 1,000 key energy-saving companies identified by the country, there are 340 oil and chemical companies, accounting for 1/3 of the total. Energy costs account for a large proportion of product costs. Energy consumption costs for high-energy products account for 60% to 70%, and energy costs for general products account for 20% to 30%. Among them, the energy consumption of the five high-energy-consuming industries such as nitrogen fertilizer, soda ash, caustic soda, calcium carbide, and yellow phosphorus accounts for about 60% of the total energy consumption of the industry. Through the hard work of the entire industry, in the first three quarters of 2007, the unit energy consumption of the six key energy-consuming industries in the petroleum and chemical industries showed an overall decline. Among them, the comprehensive energy consumption of the caustic soda industry decreased by 3.6%, the comprehensive energy consumption of the ethylene industry decreased by 2.9%, and the integrated energy consumption of the crude oil processing, soda ash, and calcium carbide industries decreased by 1.9% year-on-year, respectively, and the comprehensive energy consumption of the ammonia industry decreased by 1.8%.
Although the energy conservation and consumption reduction work in the oil and chemical industry has achieved certain results, it is necessary to fully realize the “Eleventh Five-Year Plan†energy-saving goals. The petroleum and chemical industries need to work hard. The strengthening of energy management agencies will also give guidance and support to the energy and consumption reduction of the petroleum and chemical industries. It is believed that under the joint efforts of the government and enterprises, China will surely be able to successfully weather the energy crisis, ensure energy security and safeguard national security.
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