Experts warn of rising dependence on imported oil

Experts warn that China’s increasing dependence on imported oil is threatening its energy security, and that Beijing must act to ensure adequate supply in future, state media reported. China imported 55.2% of the oil it used in the first five months of this year, up from 55% in 2010 and 33% in 2009. Meanwhile, total oil consumption rose 10.3% year-on-year to 198 million tons in the period, while total 10.3% year-on-year to 198 million tons, according to the Ministry of Industry and Information Technology (MIIT). Tong Xiaoguang, a researcher with Chinese Academy of Engineering (CAE), forecasts that China’s dependency on imported oil will surge to 60% by 2020 and 65% by 2030. In the US, the proportion of imported oil decreased to 53.5% in the first five months of this year. The MIIT said annual oil consumption in China is expected to reach 468 million tons in 2011, up 6.5% from 2010. Dong Xiucheng, professor with the China University of Petroleum, notes that growth in China’s oil consumption is outpacing that of the overall economy because the country relies largely on energy-intensive industries. To mitigate China’s oil dependency rate, experts suggested China should set a ceiling for oil consumption, improve energy efficiency, boost natural gas development, buy more oil resources, and explore deep-sea oil and alternative energies.