He said that China is both a major oil producer and consumer and as of the end of 1999, it was ranked the world 10th and 5th in terms of its proven oil reserves and annual oil production of 162 million tons (3.24 million barrels per day).

Addressing the Second Annual International Business Forum for the Asia Pacific and Indonesian Oil, Gas and Energy Sectors, Wang said that the domestic crude oil production could not satisfy the increasing demand for the long sustainable growth since 1993.

"China has become a net oil importer. It is expected that China will import 40 million tons of crude and refined products in 2000, " he said, adding that the country still boasts of great potential of hydrocarbon resources.

Wang said "As estimated in the coming 20 years, China will see continuos increase of oil production and reserves as well as the dramatic increase of natural gas."

Wang added that China's peak annual oil production will hit 200 million tons, representing 1.3 percent average increasing rate. The country's demand for crude oil will be increased about 4 percent in average if the GDP grows at 7 percent supposed rate. "It is very clear that domestic supply alone is not sufficient and imports should be added."

(People's Daily)