China’s oil reserve

Crude oil reserve base

The Chinese media supports the need to boost China’s oil reserves following comments by President Xi Jinping on the need to “safeguard the country’s energy security”.In remarks to senior officials on Tuesday, Mr Xi called for work to improve China’s oil reserve systems to be speeded up.He also urged close monitoring of the global energy market, the accelerated development of non-conventional forms of energy and reforms to gas, oil and energy pricing, according to the official news agency Xinhua. There would be a need for China to look for ways in improving their oil reserve systems for they are heavily reliant on it. The China Daily reports that China quickly ramped up crude oil imports for its strategic reserves last year, when world oil prices started to plunge.

China’s oil demand is high

Lin Boqiang, an energy expert with Xiamen University, tells the China News Service that the country needs to seize the opportunity of low prices to boost reserves, while working to increase its own influence over international oil prices.A commentary in the Haiwai Net, however, notes that the oil sector in China is monopolized by state-owned companies, leading to corruption, and suggests the state “loosen some of its grip” on the market. The continuous dipping of oil prices endangers the oil reserves. China is also concern in trying to reduce its reliance from oil. China has been looking for other countries producing it and not only relying to the main producers of oil. China has been protecting their oil-sources such as Nigeria. However the country is suffering from the increasing presence of militants in their country. This prompted China into giving out help in order to sustain the partnership between the two when it comes to oil. Nigeria‚Äôs economy heavily relies on oil. China would also need to try to reduce its usage of oil because of the need to reduce the pollution produced by the industries. It is still unclear how China would survive the scuffle but at the very least it looks favorable for them.

Images by China Daily and Ejinsite