Oil and Gas Sector of the People’s Republic of China: Problems and Development Trends

Abstract

Through vigorous economic development in recent decades, China has become one of the world’s leading economies and a major player in the international arena. The strengthening economic potential has caused a significant increase in the demand for energy resources. Therefore, the need for an effective energy policy has also increased. The PRC uses fossil energy resources such as coal, oil and natural gas as its main energy sources. Fossil energy sources are currently important for maintaining the country’s energy balance. Moreover, one of the important objectives of energy policy is to reduce the environmental risks associated with the overuse of the coal industry. The coal industry poses a serious threat to the environment, as emissions of biogenic methane and carbon dioxide from fuel combustion lead to a greenhouse effect. In this regard, China is actively developing alternative energy sources that will be beneficial for this period of economic development, namely the oil and gas industry. Oil and gas are among the main sources of energy in the PRC today. China currently occupies an important position in the global oil and gas market, having a significant impact on prices in these sectors. Every year, the country purchases significant amounts of oil and gas from global markets and uses them in various sectors of the economy, including manufacturing, transport and energy. In addition, China is actively developing oil and gas infrastructure and investing in exploration and production activities to meet its own energy needs. In this regard, the article studies the oil and gas industry of the PRC, considers the main indicators of oil and gas production, imports and consumption, and analyses the existing development trends and problems of this industry.