Report Calls for China's Strategic Oil ReserveA recent research report has called for the establishment of China's strategic oil reserve system as soon as possible to combat crisis caused by changes in the world oil market.The report on China's future oil imports suggests that a government strategic oil reserve plus enterprises' commercial reserve should not be less than 15 million tons by year 2010. The current reserve of state-owned petroleum enterprises is very limited and could support production for only one week or so, says the report released by the Economic Research Center of the State Economic and Trade Commission. The report further notes that major oil consumption countries such as the United States and Japan all have their strategic reserve systems, adding that the absence of the strategic oil reserve is not suitable to China's position as a major oil consumer. It is also unfavorable for the government and enterprises as well to weather changes in the international oil market and posts a threat to the nation's economic security, says the report. It predicts that China's oil production would remain at 160-170 million tons in the foreseeable future, while the consumption would hit 243 million tons by 2005, 296 million tons by 2010 and 360 million tons by 2015. |
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