Current Situation of China's Petroleum Supply & Demand and Change of Circulation System

China's crude supply consists of the imported crude and crude produced by CNPC and CNOOC. In 1996? national crude production reached 157. 29 million tons including 141. 41 million tons produced by CNPC. Offshore crude production in 1996 soared to 15. 01 million tons, up 78% from 1995. In 1997, China will produce, import and process more crude, as compared in 1996. The evolution of China's oil circulation system, since the founding of the People's Republic of China in 1949 , can be divided into three stages. The current system has the following features; (1)unified allocation for crude resources, and directional allocation for oil products; (2)crude and oil products' prices are under the state control; (3)There is one major circulation channel and two subordinate channels; (4)quota and licensing system are applied to imported oil; (5)crude export plan is determined by the State Planning Commissions (6)oz7 product export is carried out by three different companies according to product types.