China Peaks Oil Consumption as Renewables and Nuclear Power Take Center Stage

China's crude oil consumption declined for the first time in two decades in 2024, signaling that the world's largest driver of oil-demand growth may be approaching a structural plateau. The country imported over 11.1 million barrels per day (mb/d) and spent around US$300 billion annually on crude. However, a significant share of these imports has been absorbed into reserves.

According to the International Energy Agency (IEA), China's oil consumption demand is expected to peak by 2030. This would be a remarkable policy outcome for an economy of China's size and energy demands. The rewriting of China's energy economics can be attributed to an intentional, future-forward policy architecture that replaces imported oil with domestically controlled energy systems.

The shift towards renewable energy is a key component of this strategy. In 2024, China added 277 GW of solar and 80 GW of wind capacity, breaking records in both categories again in 2025. By the end of 2025, non-fossil fuel power generation accounted for over 60 percent of total installed capacity.

Nuclear power is also being developed to complement renewable energy and provide a stable baseload. China has completed 37 reactors since 2015, with an average construction time of 6.3 years. The country now operates 60 reactors with a combined capacity of 60 GW, and another 36 are under construction.