Thread Content
Analysis of the Development Plan for the Oil and Gas Industry over the Next Three Years Source: Market Report 2009-03-02 \"Achieve diversification in the acquisition of oil and gas resources, as well as scale up oil and gas production capabilities.\" ”This is the most striking impression left on us by the recently held National Energy Work Conference regarding the development plan for the oil and gas industry in China over the next three years. How to make oil and gas supply more stable, efficient, and clean has become a key issue that needs to be addressed in the future development of the oil and gas industry, as well as a \"bottleneck\" that must be overcome in this process of development. The energy conference set clear targets for oil and gas production from 2009 to 2011: the target production volumes of crude oil for these three years were 192 million tons, 196 million tons, and 198 million tons respectively ； The target gas production for these three years is 86 billion cubic meters, 105 billion cubic meters, and 120 billion cubic meters respectively. To achieve these production targets, the oil and gas development plan for the next three years outlines clear and specific key tasks as well as policy safeguards. Enhance the core competitiveness of the oil and gas industry and build large-scale oil and gas production bases. Over the next 3 years, China’s oil and gas industry will stabilize production in existing oil fields in the eastern regions such as the Songliao and Bohai Bay basins, accelerate development in western oil and gas areas like the Tarim, Junggar, Ordos, and Sichuan basins, increase offshore oil and gas production, and strive to take exploration and development of marine natural gas in the south to a new level. By 2011, an additional 700 million tons of recoverable crude oil reserves were added, along with an additional production capacity of 70 million tons ； New natural gas recoverable reserves amount to 1.2 trillion cubic meters, with a production capacity of 65 billion cubic meters. Build large-scale oil refining bases. Over the next 3 years, China’s oil and gas industry will carry out rational planning and expansion of refining capacity. Accelerate the construction of renovation and expansion projects for refineries in Zhenhai, Maoming, and other locations ； Meet the construction requirements and commence construction of large-scale oil refining projects in Sichuan, Guangzhou, Quanzhou, Shanghai, and other locations ； Actively promote large-scale refining projects jointly established in our country using crude oil resources provided by companies from countries such as Venezuela, Qatar, and Russia. Large-scale oil refining bases have been gradually established in cities such as Ningbo, Shanghai, and Nanjing, with production volumes exceeding 30 million tons per year, as well as in Maoming, Guangzhou, Huizhou, Quanzhou, Tianjin, and Caofeidian, where production volumes exceed 20 million tons per year. By 2011, the country’s effective oil refining capacity reached 440 million tons per year. Build comprehensive oil and gas storage and transportation facilities. Over the next three years, China’s oil and gas industry will accelerate the development of four strategic import channels for oil and gas in the Northeast, Northwest, Southwest, and offshore areas. Priority is being given to the construction of crude oil pipelines such as the China-Kazakhstan Phase II, China-Myanmar, Mohe-Daqing, Rizhao-Yizheng, and Lanzhou-Chengdu pipelines, as well as refined oil pipelines like those connecting Lanzhou-Zhengzhou-Changsha, Fujian, and Jiangsu ； Coordinate domestic and international natural gas resources (including LNG), coalbed methane, and coal-to-natural gas resources, and accelerate the construction of gas pipelines such as the Sichuan Gas to East China project, the Central Asia and West China Gas Transmission Line 2 (including the Shenzhen LNG peak-shaving station), the China-Myanmar gas pipeline, the Qinghai-Tibet gas pipeline, the Shaanxi-Beijing Gas Pipeline 3, the Northeast China gas network, the Sui-Ning-Lan double-track pipeline, the Yulin-Jinan pipeline, and the Northeast Sichuan-West Sichuan gas pipelines ； New LNG receiving stations and associated pipelines will be built in Qingdao, Ningbo, Tangshan, Zhuhai, and other locations. Actively promote oil reserves. Over the next 3 years, China will launch the construction of the second phase of its oil reserve facilities, with underground storage tanks being the main component. Through three years of construction, efforts will be made to raise the total storage capacity of the **oil reserve base to 44.6 million cubic meters, thereby further enhancing the **oil reserve capacity. Actively develop alternative fuels to oil. To reduce dependence on oil, we need to accelerate the development of alternative fuel sources for oil in our country. The main focus is on the development of coal-based liquid fuels, biomass liquid fuels, etc. Build non-grain fuel ethanol production capacity and corresponding planting bases in South China, Southwest China, East China, and North China ； Accelerate the advancement of direct and indirect coal liquefaction projects in Shanxi, Inner Mongolia, Ningxia, and other regions ； Advance the dimethyl ether projects in Xinjiang, Inner Mongolia, Shaanxi, and other regions steadily. Ensure the sustainable development of the oil and gas industry by implementing proactive energy investment policies. Over the next 3 years, **more funding from the fiscal budget and government bonds will be allocated to energy infrastructure that is crucial for long-term strategic security and people’s well-being. The main areas of investment will include the construction of inter-regional transmission channels and pipelines for coal, electricity, oil, and gas ； Construction of infrastructure such as urban and rural power grids, rural energy systems, and urban residential gas supply networks, as well as projects related to people’s livelihoods ； Construction of strategic reserve facilities for petroleum, natural uranium, etc. Advance the reform of the energy investment and financing system. Over the next 3 years, **the approval procedures for energy projects will be simplified; eligible projects of the same type will be approved in batches or arranged uniformly through special construction plans. Reduce the proportion of funding for new energy and renewable energy projects, expand the channels and scale through which energy companies can raise funds directly via bonds, stock listings, etc., promote the establishment of funds for the development of the energy industry, and foster diversification in energy investment. Establish special funds for oil reserves, energy risk assessment, and the development and utilization of coalbed methane; improve the management of special funds for renewable energy and energy conservation; and support the development of key energy sectors. Increase support through fiscal and tax policies. Formulate preferential policies such as tax reductions on resource taxes to encourage oil companies to increase the development and utilization of hard-to-access and low-grade reserves. Accelerate the development of energy-related legal frameworks. Over the next 3 years, the **Energy Law and the Oil Reserve Regulations will be introduced as soon as possible, and laws and regulations related to energy that are urgently needed in practice, such as the Oil and Natural Gas Law, will be revised promptly. These measures aim to regulate energy production, consumption, and management practices, thereby providing a legal framework for the healthy development and reform of the energy sector. Provide comprehensive support for international cooperation in energy. Over the next 3 years, **companies will be encouraged to engage in overseas resource development and mergers and acquisitions, with support measures such as loan subsidies, preferential loans, and increased financial investment for major overseas energy projects. Revise and improve the coordination mechanism for the development of overseas oil and gas resources. Urgently conclude bilateral agreements with relevant parties regarding investment protection, avoidance of double taxation, judicial assistance, etc. Our embassies in key oil-producing countries are staffed with *officers responsible for energy affairs to provide information and build connections. The study explores the idea of setting aside a certain proportion of foreign exchange reserves to establish a special fund for overseas energy exploration and development, aimed at supporting oil companies in acquiring resources abroad. Improve the energy information statistics system and regulations. Over the next 3 years, **will strive to establish and improve the energy information statistics system, enhance energy forecasting and early warning capabilities, standardize the systems for reporting and disseminating energy information, and leverage the role of intermediary organizations such as associations to provide information support for decision-making in **. Whether it is the formulation of specific tasks or the design of macro policies, **the plans devised by the Energy Bureau for the development of the oil and gas industry in our country over the next three years place great emphasis on the scaling up of resource acquisition, processing, supply, and utilization; it is clear that the approach of pursuing scale in order to promote sustainable development in this industry is being followed. (Ren Jikai)