Building a world of
resilient communities.

MAIN LIST

 

China says oil reserves twice as big as expected

China's ministry of land and resources announced yesterday on its website that the country had more oil reserves than expected, news that may bring relief to acountry increasingly concerned with its growing reliance on crude oil imports.

The ministry cited a report by China Petroleum and Chemical Corporation, China's second largest oil company, which identified 6.5bn tonnes (47bn barrels) of proven oil reserves in the country, referring to oil that is recoverable from known oil reservoirs at a reasonable cost.

The amount is much higher than generally believed. International studies, including BP's just-published statistical review of world energy, put it closer to 3.2bn tonnes.

While the accuracy of oil reserve estimates is notoriously difficult to establish, the Chinese report is likely to be studied closely by world experts, because the country's demand for oil, currently second in the world behind the US, is often blamed for the rising cost of crude.

The study showed proven reserves making up 43 per cent of total recoverable reserves in the country, which meant that the amount of oil that could be practically extracted would grow at a steady pace for the next 20 years.

The ministry's upbeat statement was qualified, however, by the admission that most of China's oil lies under deserts, loesses and other hard-to-get-to places that put up production costs.

Meanwhile, the country's top energy companies have been accused of wasting their exploration licences, a practice blamed for making China's energy shortage more critical.

The ministry's annual audit of oil and gas exploration projects found that up to half of the 800-plus oil and gas exploration projects in the country did not receive the minimum amount of investment required in 2003.

The report, published on the Oil News website yesterday, did not provide a break-down for different kinds of natural resources. Given the limited demand for natural gas in China and the high cost of oil, it can be assumed that most of the licences being questioned are for gas exploration. Is China's growth sustainable?

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.

Tags:  

Fracking and Health: What we Know from Pennsylvania's Gas Boom

Tensions between economic development, energy policy and environmental and …

Peak Oil Review: A Midweek Update - 24th Aug 2016

 A midweek update. It has been a volatile three days for oil with …

How We Went on an Energy Diet, and What We Lost (and Gained!)

In which I reveal the changes in our household energy usage from 2003 …

Five Billion Years of Energy Supply: the "Stereosphere" and the Upcoming Photovoltaic Revolution

Both the biosphere and the stereosphere use solar light as the energy …

Peak Oil Review - Aug 22 2016

 A weekly roundup of peak oil  news, including: -Oil and the …

Limitless imagination and physical limits

How do we distinguish those ideas that are forever going to remain in the …

Some Reflections on the Twilight of the Oil Age (part III)

The impact of the Tooth Fairy Syndrome is all the more felt in the main …