According to the 2008 BP Statistical Energy Survey, China had proved oil reserves of 15.493 billion barrels at the end of 2007 and produced an average of 3743.3 thousand barrels of crude oil per day, 4.77% of the world total and a change of 1.6 % compared to 2006. China is the world's second largest consumer of petroleum products after the United States, consuming an average of 7854.55 thousand barrels a day of oil in 2007, 9.3% of the world total. China has accounted for around 40% of world oil demand growth over the past four years and as a result has become a very significant factor in world oil markets.
China has been a net oil importer since 1993. Many of its largest oil producing fields are mature and production has peaked, leading to a shift of focus to offshore fields and some parts of the western interior.
China's petroleum industry has undergone major changes over the last decade. In 1998, the Chinese government reorganized most state owned oil and gas assets into two vertically integrated firms -- the China National Petroleum Corporation (CNPC) and the China Petrochemical Corporation (Sinopec). Before the restructuring, CNPC had been engaged mainly in oil and gas exploration and production, while Sinopec had been engaged in refining and distribution. This reorganization created two regionally focused firms -- CNPC in the north and west -- and Sinopec in the south, though CNPC is still tilted toward crude oil production and Sinopec toward refining. Other major state sector firms in China include the China National Offshore Oil Corporation (CNOOC), which handles offshore exploration and production and accounts for more than 10% of China's domestic crude production, and China National Star Petroleum, a new company which was created in 1997. Regulatory oversight of the industry now is the responsibility of the State Energy Administration (SEA) which was created in early 2003.
China inaugurated its first transnational oil pipeline in 2006. The pipeline spans 620 miles, connecting Atasu in northern Kazakhstan with Alashankou in the Xinjiang Uygur Autonomous Region.
According to the 2008 BP Statistical Energy Survey, China had 2007 proved natural gas reserves of 1.88 trillion cubic metres, 1.06% of the world total and natural gas production of 69.31 billion cubic metres, 2.35% of the world total. During the same period, China consumed 67.3 billion cubic metres of natural gas, 2.29% of the world total.
According to the 2008 BP Statistical Energy Survey, China had a 2007 refinery capacity of 7510.73 thousand barrels a day, 8.54% of the world total, and a refinery throughput of 6562.65 thousand barrels a day, 8.68% of the world total.
