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Chinese market boosts world oil economy: OPEC(21/10/04)

    The Chinese market will play an important role in boosting the world petroleum economy, a senior official of the Organization of Petroleum Exporting Countries (OPEC) said here Wednesday.

    Speaking at the World Petroleum Congress (WPC) Youth Forum, Mohammad Alipour-Jeddi, head of the Petroleum Market Analysis Department of the OPEC, said rising international oil prices have drawn the world's attention to the limited supply of oil.

    While consumers want a stable supply, producers want a stable and promising market, he said.

    "And China could make such a market," he added.

    The globalization of the world economy starts from the globalization of the oil economy, and against the backdrop, the development of the Chinese market will no doubt create opportunities for the development of the world oil economy, said Zeng Xingqiu, chief geologist of Sinochem Corporation.

    The world's daily output of crude oil amounts to more than 83 million barrels, while the daily demand is around 82 million.

    The current supply and demand situation would not lead to the price hikes in the international oil market, Zeng said.

    "However," said Wang Tao, WPC senior vice president, "in the long run, the world resources, especially petroleum resources, will be growing rather than drying up."

    According to him, the world crude oil production increased by 4.1 percent in 2003 and the reserves grew by 4.36 percent, which means there will be no short supply in the foreseeable future.

    As a matter of fact, said Alipour-Jeddi, there were complicated factors behind the rising oil price, including the influence from the world economic growth and the over-expected oil demand.

    To cope with the rising price, the OPEC has increased its daily production by 3.5 million barrels everyday, while other countries have also taken corresponding measures.

    Randall G. Gossen, vice president of WPC, said the oil price rise would prompt the world energy and petroleum industries to seek new energy development technologies and ways of energy consumption, which would help realize the sustainable development of energy sources.

    To China, this would be an opportunity to increase its energy supply capability and reduce its dependence on imported energy sources, he said.


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