The terrorist attacks on the United States have underlined China's intention to establish a strategic oil reserve, according to industry leaders.
Wang Tao, president of China National Petroleum Corp, said that establishing such reserves was a priority.
'Over the next 20 years, with our rapid economic growth, our annual demand for oil will be 400 million tonnes, while our maximum output will be 200 million. Such a high level of imports will seriously threaten not only our foreign exchange reserves but also our economic security.'
Since 1993, China has been a net importer of oil, with crude imports last year of 70.27 million tonnes, worth US$14.86 billion, against 36.61 million tonnes, worth US$4.64 billion in 1999.
'The country has very scarce reserves, only for a short period of time,' said a spokesman for Mr Wang.
'We have started to draw up plans for bigger reserves, based on our needs and our economic ability. This is due in part to the attack on September 11. But, even without that, we would have done this. If we did not and there were a war or sanctions, the oil price would be greatly influenced,' said the spokesman.
Mr Wang said China's oil resources ranked 10th in the world in quantity but second from bottom on a per capita basis.
