The oil and gas industry has made great achievements over the 40 years since China’s reform and opening-up began, and will continue to forge ahead, especially in its development of its industrial system and technology,experts said.
Over the past 40 years, the oil and gas industry has maintained rapid development in aspects including the industry scale and the production capability, said Hu Senlin, an expert on energy research.
The annual output of oiland gas has achieved an average increase of 2 percent and 6 percent, which is respectively 2.2 times and 2.5 times that of the annual global production over the last 40 years, he said.
As of last year, the country has constructed a total of 23,800 kilometers of crude oil pipeline, 26,000 kilometers of refined oil tubes and 74,000 kilometers of natural gas pipeline. The industry has also continually expanded its overseas business over the past 40 years.
Domestic companies inthe industry have signed more than 200 contracts with 78 international companies from 21 countries and regions,attracting combined investment of over 28.6 billion dollars.
By the end of 2017, domestic companies had cooperated with nearly 60 countries around the world to set upmore than 200 collaborative projects, reaching about 190 million tons of production in the overseas markets and becoming the largest scaled industry that is part of the Belt and Road Initiative, Hu said.
In the same period the petroleum giants the China National Petroleum Corporation,the China Petroleum and Chemical Corp and the China National Offshore Oil Corporation have created 2.29 million jobs, and contributed 800 billion yuan ($115.2 billion)in taxes.
In addition, the industry has invested a total of 2.06 trillion yuan in fixed assets,accounting for 8.8 percent of the country’s total industrial investment.
For green development and ecological civilization construction,Hu said that energy transformation is an inevitable trend in the industry’s development.
“The energy transformation doesn’t mean the end of the oil and gas industry”, he said.
Energy economy is a complicated system that involves limiting aspects such as cost,policy, social reaction and technology, he said, calling for treating it with an object,rational and scientific attitude.
For the technology, the layoutof future energy will be a complimentary integrated system with a balanced proportion of fossil and non-fossil energy, Hu said.
The process of energy transformation is natural and gradual, and as such cannot be hastened by policies that try to force it, he said. Oil and gas are irreplaceable in many areas and could make more contributions to humans through improvements in efficiency as well as technological innovation, he said.
At present, new energy—incorporating wind, electricity and photovoltaic or solar — could supplant fossil energy mainly in the powerfield, he said but petroleumis still part and parcel of transportation, and natural gas is expected to play a keyrole in the process of global energy low-carbon transformation,he said. The increasingly expanding population and urbanization of emerging economies will continueto grow demand of global oil and gas, Hu said.