China should build more oil stockpiles - China Energy Research Institute

Discussion in 'Commodity Futures' started by ASusilovic, Aug 23, 2010.

  1. BEIJING - China, which is set to import more than 55 percent of its oil needs this year, should seek greater diversification of oil imports, build more stockpiles and improve conservation to enhance energy security, said analysts.

    The country will see a continuous increase in oil imports, as domestic production cannot keep pace with the fast growing economy, said Zhou Dadi, a researcher with the Energy Research Institute under the National Development and Reform Commission.

    "We should have long-term plans to address oil security," he added.

    Besides increasing exploration and development domestically, the country must make continuous efforts to diversify imports, he suggested.

    Improving energy conservation will also help ensure oil security, he added.

    As the world's two leading energy consumers, China may learn from the US to protect its oil security, said Lin Boqiang, director of the China Center for Energy Economic Research at Xiamen University.

    "The two large economies both import more than half of their oil needs. The US experience is worth studying," he said.