In a recent annual academic conference held in Lanzhou City, Gansu Province, Lu Yongxiang, President of the Chinese Academy of Sciences warned that China has entered into an energy state of emergency where it had to rely on overseas sources to supply 50 percent of its oil demand in 2007. Lu said that the energy shortage will slow down the economic growth.
According to statistics released by the National Energy Administration, China became the second largest energy producer as well as the second largest energy consumer in the world in 2007. Due to its large population, China’s energy consumption per capita level was only at 62 percent of the world’s average. China’s energy elasticity index was 0.7 in 2007 which was seven times higher than Japan who has the same compatible scale of production volume as China.
Source: Xinhua, August 20, 2008
China National Energy Administration, August 20, 2008