Record reliance on foreign oil in Q1
0 
China's reliance on foreign oil hit a record high in the first quarter, when the country imported 54.52 percent of the oil it used.
China's net imports of crude oil totaled 44.95 million tons in the first quarter, an increase of 14.9 percent compared with the same period last year. Net imports of oil products rose by 31.8 percent from a year ago to 5.47 million tons, according to a report released Wednesday by the China Petroleum and Chemical Industry Association (CPCIA).
The report shows China's apparent consumption, an index for real oil consumption excluding inventory, reached an unprecedented 105.96 million tons in the first three months, rising 17.4 percent compared with the same period last year.
The apparent consumption of natural gas in the first quarter hit 26.41 billion cubic meters, a year-on-year increase of 19 percent. In 2009, China produced 189 million tons of crude oil. It imported another 199 million tons, accounting for 51.3 percent of its total oil usage that year.
"Rising oil needs are mostly driven by Sinopec and CNPC's surging oil refineries capabilities, and are partly caused by China's strategic oil reserve plans," said Feng Zhen, an analyst with Shanghai Toprise Information & Technology.
Sinopec vice president Zhang Jianhua said in February that Asia's biggest oil company will enhance its processing output to 200 million tons this year.
China processed 84.6 million tons of crude oil in the first quarter, an increase of 7.6 percent from a year earlier. The growth rate was two percentage points higher than the first three months of last year.
An oversupply in the domestic oil processing market has resulted in the growth of refined oil exports.
Data released by the General Administration of Customs shows China exported 6.94 million tons of refined oil, an increase of 66.4 percent, in the first quarter, making it the fourth consecutive quarter in which China's export volume exceeded 6 million tons. The country's gasoline exports doubled to 696,888 tons during the same period.
Some experts believe China should adjust its oil refining capabilities in accordance with real petrol demand, or else it will waste limited resources as international oil prices plunge.
"The central government must have a much broader view on this issue, and China will definitely need more oil in the future as its economy has rebounded rapidly after the global crisis," Feng said.
The CPCIA report included only data on imports, exports, domestic crude production and refinery products.
Go to Forum >>0 Comments