China Prepares for Peak Oil with Ambitious Five-Year Plan
China's newest five-year plan for its oil and gas sector reveals ongoing anxieties about geopolitical tensions, future conflicts, reliance on energy imports, and dwindling crude supplies. Released by the National Development and Reform Commission and the National Energy Administration, the plan aims to build up China's strategic reserves of natural gas and improve import capacities.
The plan targets 200 million tonnes of terminal capacity, 114 billion cubic meters of pipeline capacity, and ensuring that natural gas storage capacity outpaces national consumption by 13 percent by 2030. It also outlines a strategy to ramp up domestic oil production.
Experts say the plan reflects China's success in creating a strategic fossil fuel stockpile to buffer the nation from global market volatility. However, it also reveals Beijing's continued reliance on foreign fuel imports and ambivalence towards clean energy buildout.
The plan calls for reaching peak oil consumption, which some experts contend could happen as soon as this year. This goal is seen as a strategic priority to achieve energy independence and wean China off of foreign fuel imports.