Country to Invest More into Gas and Oil Exploration
To boost the country’s energy supply and reduce its dependency on energy imports, China will be investing 80 billion yuan in oil and gas exploration this year. Oil and gas investment have risen from 19 billion yuan to 67 billion yuan in 2011.
Between 2008 to 2011 around 5 billion tons of petroleum reserves and 2.6 trillion cubic meters of natural gas were discovered. Being the world’s largest energy consuming country, china has promised to cut down its growing dependence on overseas oil and gas supplies. Still experts are saying that china will soon overtake the United States as the largest crude oil importer in the world before 2017 with much of their imports are coming from the Middle East and Africa through sea lanes.
Gas imports are important since the domestic production in China is not that sufficient to meet the demand. The imported natural gas is transported using the pipeline from Central Asia or by ship from countries such as Indonesia, Qatar and Australia.
Last year china bought 42 billion cubic meters of natural gas overseas more than 30 percent increase compared to 2011.