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In 2004, China launched its phase I project to build four strategic petroleum reserve bases. Among them, the one in Zhenhai, Zhejiang Province, will be put into use at the end of this year, and the other three in Daishan, Zhejiang Province, Huangdao Shandong Province and Dalian, Liaoning Province will be completed in 2007 or 2008, according to an article by Xiong Guangkai, director of China Institute for International Strategic Studies.

The article says China ranks the second in energy production and energy consumption worldwide, but the per capita oil holding is lower than half of the world average. With the development of Chinese economy, industrialization and urbanization, China will face increasing demand of energy.

To balance the supply and demand in energy, China is taking measures and has given energy efficiency high priority. Building a resources-conserving society and decreasing by 20 percent of energy consumption per unit of GDP (gross domestic product) are laid out in the 11th Five-Year Program (2006-2010).

In addition, China will speed up development of alternative energy and increase import of oil from Russia, Middle Asia, Africa and Latin America besides Middle East.

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