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China's Energy Development During the Readjustment and Prospects for the Future

Published online by Cambridge University Press:  17 February 2009

Tatsu Kambara
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Extract

During the period of the Readjustment China has faced numerous and difficult problems in the sphere of energy. The two greatest difficulties now confronting the Chinese are energy supply and energy transport. Even if we put aside for a moment the long-range aspects of these problems, the immediate issues are complex. At present energy investment is directed towards securing the supply in the long run, but while this is occurring shortages remain acute, and conservation and increased efficiency of utilization are critical.

Type
The Readjustment in the Chinese Economy
Information
The China Quarterly , Volume 100 , December 1984 , pp. 762 - 782
Copyright
Copyright © The China Quarterly 1984

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References

1. Jiacheng, Wang, “On the structure of energy consumption of our country,” Jingji guanli congkan (Industrial Economic Management Series), No. 3 (1981), pp. 85–92Google Scholar .

2. TJNJ 1983, p. 249.

3. “Communiqué on the Results of the 1983 Plan for National Economic and Social Development,” State Statistical Bureau, Xinhua, 29 April 1984.

4. The Japan Energy Economic Institute is co-operating in this effort.

5. Bank, World (ed.), China, Socialist Economic Development, 3 Vols., Vol. 3 (1983), p. 188Google Scholar , and Wang Jiacheng “On the structure of energy consumptions,” have different statistical data for the energy consumption of the respective categories for 1979; those of the latter source were used in this article.

6. Statements by Wang Jiacheng during a visit of a mission from the Energy Research Institute of the State Economic Commission, led by Director Zhang Zhijian (Tokyo, 30 March 1984).

7. TJNJ 1983, p. 250.

8. Director Chengrui, Li of the State Statistical Bureau reported in Beijing Review, No. 12, 20 03 1984Google Scholar , the results of an effort to interpolate statistical data for the Cultural Revolution period by the most accurate correction estimates possible. But the question of energy consumption during that period have not been solved. The main problem is that energy consumption in 1960 exceeded the energy supply that was available in that year, even taking account of reserve stocks and imports from the Soviet Union.

9. The figure of 660 million tons was calculated from the 713 million ton total energy production in 1983; which represented a 6·7% growth over the previous year.

10. The values in this article have been calculated in 1980 prices, but care must be taken when reference is made to statistics made public by China because production and the growth rate for previous years are either given in current prices, or are given in terms of the constant prices of a specific year.

11. TJNJ, 1983, p. 22.

12. Ibid. p. 455.

13. Ibid. p. 244, supra, no. 3.

14. Detailed references in coal statistics can be found in the China Coal Industry Yearbook 1982, Ministry of Coal Industry (Beijing, 1983)Google Scholar .

15. 1983 JJNJ, IV, p. 47.

16. 1981 JJNJ, IV, p. 79.

17. Present aspect of our country's energy situation, Liaowang (Outlook), No. 7 (10 1981), pp. 9–13Google Scholar . There are several categories of oil reserves and, in the case of China, “Geological reserves” means “oil in place” and not “proven recoverable reserves.” Oil in place in the discovered oil fields in 1981 was 6·8–7·0 billion tons, while ultimate, recoverable derived reserves, which has been derived from the former by multiplying by the recovery factor, was reported as 2·3 billion tons in the same article. Recently China published data on the discovery of oil in place during the three years from 1981 to 1983. The figure was 1,060 million tons, and if we assume a recovery factor of 40% for this oil in place, 400 million tons were added to ultimately recoverable reserves. Therefore, ultimately recoverable reserves of known oil fields was 2·7 billion tons at the end of 1983. In the same year cumulative production of oil reached 1·2 billion tons and the proven recoverable reserves are therefore 2·7–1·2= 1·5 billion tons, at the end of 1983.

18. Various other secondary and tertiary recovery methods are being experimentally employed in the Daqing oil field.

19. China Daily, 11 April 1984.

20. Statement by Wencai, Qin, president of the China National Offshore Oil Corp., AP Dow Jones, Beijing, 31 03 1984Google Scholar .

21. Shangqing, Sun. “Energy structure” in Hong, Ma and Shangqing, Sun (eds.). (Research on Problems Relating to China's Economic Structure) (Beijing, 1981), p. 273Google Scholar .

22. Shangqing, Sun, “Energy structure,” p. 286Google Scholar .

23. The 1983 energy consumption statistic has not yet been announced but it is estimated to have been 660 million tons, see supra, n. 9; a 6·6% increase over the 619 million tons of 1982. On the other hand, the national income for 1983 was said to be 467·3 billion yuan (nominal prices), a 9% increase over the previous year (according to supra, n. 3). Therefore, the 1983 elasticity value with respect to nominal income was 0·73.