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Oil stock boost for emergency
POSTED: 9:50 a.m. EDT, April 23,2007

China's future energy demands will rely more heavily on clean power such as wind and solar, but more oil would be stockpiled in case of emergencies, a top official has said.

China aims to boost its oil reserves to amounts equivalent to 30 days worth of imports by 2010, Chen Mingde, vice-chairman of the National Development and Reform Commission, said during the two-day annual meeting of the Boao Forum for Asia, which closed Sunday.

Oil reserve sites should be located at places where transport infrastructure was advanced, ideally next to refineries, Chen said during a panel discussion.

It was the first time that an official from the commission revealed details about the oil reserve plan.

Chen said the country does not plan to increase its reserves to the levels of many developed countries -- oil imports up to 90 days.

"We have so many areas that need money - education, healthcare and social security," he said.

"We are short of funds. On the other hand, oil prices at international markets are still fluctuating at high levels. If we increase our reserves very aggressively, that will have impact on the price."

Chen said China had decided that it needed oil reserves to deal with emergencies.

He said rules were being drafted concerning the issue of oil reserves. The rules will stipulate that the government's oil reserves should reach a certain amount in some years.

Enterprises in the oil business will also be required to keep a reasonable amount of reserves, he said.

From:xinhua
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