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Energy

China's oil demand not a burden on global supply

(Xinhua)
Updated: 2011-03-21 17:46
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BEIJING - China's rising oil needs will not bear on the global supply, instead it will help to promote essential investments in the oil sector to boost efficiency and capacity, Saudi Aramco president said Monday.

Khalid A. Al-Falih, president of Saudi Arabia's state-run oil giant, was speaking at the China Development Forum 2011 held in Beijing. He said it's unfair to single out the impact of China's demand on world oil markets.

"I believe increased Chinese demand offsets declining consumption in the OECD nations, and is essential to encouraging necessary investment in exploration as well as oil production, refining and transportation capacity, which ultimately benefits all petroleum consumers," he said.

He said as China continues to meet its growing energy needs, the oil industry itself looks to China as the largest source of incremental demand growth.

"So there is a mutually beneficial and strategically important relationship between China and the world's petroleum producers," he said.

He said that he believed China could be a global investor in natural resources, as the nation has world-class capabilities in engineering, technological development, industrial services and project management.

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He added that by extending capital and industrial know-how in overseas markets, China will not only help diversify those economies but also secure those markets for Chinese goods and services.

"This would enhance global economic integration and promote economic stability - all serving to foster a kind of harmonious global community," ?he said.

He believed China would best pursue energy security, promote sustainable and balanced economic development, and protect its natural environment through a diversified energy portfolio suitably complemented by renewables and alternatives.

The forum runs from Saturday to Monday in Beijing and its theme is "The Ongoing Transformation of China's Growth Pattern." Hundreds of experts working in various fields at home and abroad gathered to share their opinions on China's drive for transformation.

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