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Austin, TX (ZPRYME NEWS) – 06/23/08 – China is definitely one of the fastest growing economies in the world today. As China makes its way to becoming the leader in economic development, the country faces the challenge to address the energy needed to run and maintain its economic growth.

PR Inside on “As pillar industry in the national economy, China’s petroleum industry faces unprecedented opportunities and challenges” reported the price of crude oil continues to rise despite the balance in the supply and demand of the crude oil in the international market. In August of 2007, the sharp hikes in the prices of crude oil were felt by many. In China, the country experienced a tremendous increase in the consumption of crude oil from 106 million tons in 2006 to 173 million tons in 2007 .

According to Chinacm.com on “Annual Report on the Development of China Petroleum Industry”, to sustain the economic growth of China, an increase in energy supply must also take place. This increase however is dependent on the growth of the economy itself and the policies of the government of China with regards to energy and its relationship with other countries. The same report revealed that China, in the next five years, is expected to have an energy demand increase of 5.1 percent every year. This is due to the rapid growth of the heavy industries in China. Thus, the development trends in China likewise require an ever expanding supply of energy to meet its development needs.

Plastemart on “Projections for China's petrochemical industry in 2008” also reported that the petroleum, as well as the chemical industries of China are projected to grow at a rapid pace in 2008. This is according to the China Petroleum and Chemical Association’s reports. According to the Association, the primary economic index will continue to grow in double digit numbers, although it would be expected to be at a lower rate than that which was experienced in 2007. This report is a significant affirmation of the report on the development of China’s petroleum industry.

Reuters on “High Oil Prices Accelerate Reform of China Refined Oil Product”, reported that the oil prices in 2007 tremendously rose in the international market which likewise affected China. At present, the Sinopec and the CNPC are the refined oil retailers that dominate most of China. There are also a number of state-owned and privately owned retailers of refined oil in China but 67 percent of them are fully held and invested by either the Sinopec or the CNPC. In China, there are over 95 thousand gas stations and 51 percent of these stations were franchised under the two refined oil giants of China. For the year 2008, the government of China, according to the same report, is on its third stage in the development of gas stations.

China, in its desire to continue and even expand the growth of its economy, is in dire need of significant reforms in its power sector policies if its wants to harness the fruits of development.

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Zpryme: Emerging Markets Group

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