Abstract

On one hand, the population of China accounts for one-fifth that of the world, whereas the proved oil reserve for an average person in China makes up less than one ninth that in the world. And the average natural gas reserve per person for China is only one twentieth that of the world. On the other hand, the yearly oil output of China has risen from 120,000 tons to 139,000,000 tons, which has made China one of the largest oil countries in the world, presenting a striking contrast with the former. This is a problem which is worth noticing. More and more oil and gas are needed for the continued economic development of China, but the oil industry of exploration and development is faced with such contradictions and difficulties as lack of reserve volume, imbalance of the ratio of reserves and production, shortage of funds, surplus of staffs, low labour productivity, and so on. For this reason it is necessary to analyse the economic benefit and strategy of China's oil and gas exploration and development. With a series of data and charts this paper analyses the economic benefit of the exploration and development of China's oil and gas and proceed to study the strategy of "Stabilising the Eastern Part and Developing the Western Part of Oil Zone" and "Starting the Second Oil Undertaking and Opening the Second Battlefield for Oil Production". And in this paper the author comes up with his own points of view.

Introduction

The population of China accounts for one-fifth that of the world, whereas the proved oil reserve per capita in China makes up less than one ninth that in the world. And the per capita natural gas reserve of China is only twentieth that of the world. Although the yearly oil output of China has risen from 120,000 tons to 139,000,000 tons, that is, it has increased by over 1,000 times, and this has made China one of the largest oil countries in the world. China one of the largest oil countries in the world, China is lagging behind compared with the largest oil-producing countries and per capita oil reserve in the world. Most important of all, the speed at which oil industry develops lags behind that at which economy increases since the Chinese economy increases at an average rate of 10 to 14 per cent a year while the oil output shows a yearly average increase of less than 1 per cent. All this has no doubt restricted the continued and rapid development of the Chinese economy. At the same time the Chinese government has increasingly invested in exploration in recent years but the proved oil and natural gas reserves show no distinct increase.

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