Oil supply assured, coal prices may climb
29 May 2006
New oil discoveries will ensure China's supply despite exploration difficulties, said the Chinese Academy of Engineering. The country's annual oil output could soon reach 195 million tons, up from the 182 million tons produced in 2005 when 42.9% of its oil and oil products were imported. By 2020, production could surpass 200 million tons. The National Development and Reform Commission predicts China will consume 330-350 million tons of oil per year by 2010. Meanwhile, coal prices are expected to climb steadily as environment and safety considerations drive up production costs. The Coal Sale and Transportation Association said the cost of producing one ton of coal would jump from US$6.25 to US$8.75.
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