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According to Business Society on February 3, although the prospects for the coal and oil industries in 2009 are not optimistic, they present an opportunity to consolidate resources and improve mechanisms. A report titled \"Forecast and Prospects for China’s Economy in 2009\" (hereinafter referred to as the \"Prospects\") submitted recently by the Chinese Academy of Sciences to the relevant departments of the State Council recommends increasing efforts to integrate coal resources and controlling the growth rate of coal production ； Make full use of the drop in oil prices to streamline the oil pricing system ； Make full use of derivative markets such as options and futures for oil and petroleum products to establish strategic oil reserves. According to the analysis in Outlook, from the perspectives of production, supply, and demand, the factor affecting the operation of China’s coal industry in 2009 will no longer be supply, but rather demand. As the international financial crisis deepens and domestic and foreign market demand slows down, high-energy-consuming industries are reducing production on a large scale, which will inevitably have a direct impact on coal demand. According to Outlook, China’s raw coal production is expected to see a slight increase of 6.9%–8.9% in 2009, while coal prices will gradually decline; the factory price index for coal mining and processing industries is projected to fall by 3%–6%. The Outlook also points out that the current drop in oil prices is not caused by an increase in supply or improved energy efficiency, but rather by a decline in demand due to economic downturns; as a result, international oil prices are not expected to rise significantly in the short term, and OPEC members will reduce production again. Outlook predicts that in 2009, the price index for the oil extraction industry and the ex-factory price index for petroleum products will increase by -5% to 6% and 6.7% to 14%, respectively. Affected by fluctuations in international oil prices, domestic oil prices in China will remain low in 2009, with supply and demand for refined oil being roughly in balance; as a result, the prosperity of the oil industry will begin to decline. According to Outlook, given the currently low international crude oil prices, China may introduce reforms to its refined oil pricing mechanism in 2009. This reform will address the situation where the prices of refined oil and crude oil are inverted, as well as the losses suffered by domestic refining industries due to rising international crude oil prices. It will enhance the ability of refining companies to adapt to fluctuations in international crude oil prices, thereby contributing to an improvement in the industry’s profitability in the long term. Chen Xikang, executive deputy director of the Academic Committee at the Center for Predictive Science of the Chinese Academy of Sciences, also suggested accelerating the construction of crude oil reserve bases, establishing a reserve capacity sufficient for 90 days of use in the short term, and accumulating large amounts of crude oil during periods when oil prices are low. It is said that the internationally recognized safe threshold for a country’s crude oil reserves is 90 days of consumption. Japan’s reserve amount is enough for 160 days of use. China’s current oil reserves, including commercial reserves, cover approximately 30 days of usage. Starting in 2003, China built the first batch of oil reserve bases in four coastal areas—Zhenhai, Zhoushan, Huangdao (Qingdao), and Dalian—with a total reserve capacity of 14 million tons. Once completed, the four major oil reserve bases are expected to have a crude oil reserve equivalent to more than ten days’ supply. At present, the three major bases in Zhenhai, Zhoushan, and Huangdao have been basically completed. **The National Development and Reform Commission has also completed the planning for the second phase of the oil reserve project, with a storage capacity of 26.8 million cubic meters.