China is currently the second largest oil importer in the world. In 2004 alone, China’s oil imports increased by 15%. In order to ensure a stable source of oil, China is currently actively implementing long-term cooperation with major oil partners in the world, including Middle East countries, Africa, Russia, and Venezuela. An official of Sinopec said: "More crude oil imports means we need a safer energy provider, otherwise we will be more vulnerable to the impact of the international crude oil market."
China National Petroleum Corporation was once considered an unstable buyer in the international market. At present, China's major state-owned oil companies are actively changing this image. In addition to expanding oil imports from Saudi Arabia, China has also expanded its oil imports from Oman and Kuwait. For Iran, China’s third largest oil supplier, Sinopec also requested that it expand its sales to China in 2006.
While China is expanding its oil imports from Saudi Arabia, Saudi Aramco also actively enters the Chinese market. Aramco currently controls a 25% stake in the ethylene integration project in Quanzhou, Fujian Province. In addition, Saudi Arabia also plans to invest 1.2 billion U.S. dollars in the construction of a new refinery in East China. The project is expected to start in 2008.
The “China Oil Threat Theory†has no basis. In addition to expanding the demand for traditional oil production in the Middle East, China will also look to Africa. Although 70% of Sinopec’s crude oil comes from imports, no barrel comes from Africa. At present, Africa accounts for 30% of China's total crude oil imports, of which Angola has become China's second largest crude oil importer after Saudi Arabia.
"While expanding the scope of oil purchases equals an increase in risk, we will increase imports from Africa," said an official at Sinopec.
As for the “China Oil Threat Theory†circulating from the outside world, Lu Jianhua, Director of the Department of Foreign Trade of the Ministry of Commerce of the People's Republic of China stated on the 17th that there is no basis for China’s import to push up international oil prices. He said that compared to Other countries, the 1.3 billion people of China imported 120 million tons of oil last year, not too much. He predicted that the increase in China's oil imports will slow down in 2006 and will continue to fall from about 5% this year.
China National Petroleum Corporation was once considered an unstable buyer in the international market. At present, China's major state-owned oil companies are actively changing this image. In addition to expanding oil imports from Saudi Arabia, China has also expanded its oil imports from Oman and Kuwait. For Iran, China’s third largest oil supplier, Sinopec also requested that it expand its sales to China in 2006.
While China is expanding its oil imports from Saudi Arabia, Saudi Aramco also actively enters the Chinese market. Aramco currently controls a 25% stake in the ethylene integration project in Quanzhou, Fujian Province. In addition, Saudi Arabia also plans to invest 1.2 billion U.S. dollars in the construction of a new refinery in East China. The project is expected to start in 2008.
The “China Oil Threat Theory†has no basis. In addition to expanding the demand for traditional oil production in the Middle East, China will also look to Africa. Although 70% of Sinopec’s crude oil comes from imports, no barrel comes from Africa. At present, Africa accounts for 30% of China's total crude oil imports, of which Angola has become China's second largest crude oil importer after Saudi Arabia.
"While expanding the scope of oil purchases equals an increase in risk, we will increase imports from Africa," said an official at Sinopec.
As for the “China Oil Threat Theory†circulating from the outside world, Lu Jianhua, Director of the Department of Foreign Trade of the Ministry of Commerce of the People's Republic of China stated on the 17th that there is no basis for China’s import to push up international oil prices. He said that compared to Other countries, the 1.3 billion people of China imported 120 million tons of oil last year, not too much. He predicted that the increase in China's oil imports will slow down in 2006 and will continue to fall from about 5% this year.
Xiahua Envirotech Co., Ltd. , http://www.jsfiltercloth.com