under open conditions should be the first objective. Domestic and international markets and
resources should be planned in a holistic manner.
The survey, assessment and exploration of
domestic oil and gas resources should be
strengthened, and the resources developed in an
orderly and cost-effective way to improve China’s domestic supply capacity. China should also
actively develop overseas resources to diversify
imported oil and gas supply, thus lowering risk
and enhancing supply security.
Different targets and interests should be
acknowledged. Economic returns and social
benefits should be combined organically. Public
interest should be better protected. Oil and gas
supply capacity and quality should be improved
to make high-quality, clean and affordable oil
and gas resources widely available to the public.
5.3.3 Objectives of Reform
Market-oriented reform of the oil and gas value
chains should be accelerated, as required by the
Central Committee of the Communist Party of
China and the State Council in the Opinions on
Deepening the Reform of the Oil and Gas System. This will be achieved by capitalising on the
strategic opportunity to deepen reform of the oil
and gas sector, thanks to the abundant supply
resources available in the international oil and
gas market and low oil and gas prices. The goal
is to build a modern oil and gas market that has
been opened up in an orderly fashion, featuring
fair competition, effective regulation and governed by laws. By 2030 the market will play a
decisive role in allocating oil and gas resources
and government will play a more efficient role.
Oil and gas supply capacity and efficiency of use
should be improved rapidly, and the substitution
of energy types should be realised as soon as
possible. In this way, economical oil and gas
resources will be available to people, and the
strategic objectives of energy production and
consumption will have been achieved.
More effort should be channelled into restoring the commodity attributes of oil and gas to
allow prices to be determined by supply and
demand. Government focus will shift, from
intervening in operations and setting prices for
oil and gas producers to developing strategies,
plans, policies and rules to create a fair market.
Government should strengthen its regulations on
market access, transactions, monopolised segments, pricing and costs. It should also improve
the standards, rules and procedures of the regulatory process to create a standardised, orderly,
open and transparent supervisory and regulatory
system.
Oil and gas supply capacity and energy efficiency will be improved. Reform of the whole
value chain should be deepened to make the
competition-based segments of oil and gas
companies more dynamic. Technical innovation
should be pushed to reduce production costs and
improve supply capacity. Other targets include:
using domestic as well as overseas resources;
mitigating market risk; improving transmission
and service; improving oil and gas use efficiency;
ensuring strategic oil and gas security; and
operating safely and cleanly along the whole
value chain.
The substitution of energy types should be
achieved as soon as possible. Petroleum consumption should be guided. The proportion of
natural gas should be increased significantly to
develop natural gas into one of the main energy
sources as soon as possible, thereby achieving
the strategic objectives of energy production and
consumption.
5.3.4 Pathways to Reform in the Oil
and Gas Sector
To achieve the above objectives, oil and gas
sector reform should be as follows.
(1) Reform the oil and gas mining rights
management system and establish a mining rights market
Reform of the oil and gas mining rights management system should “be market-oriented,
diversify investors in an orderly manner,
strengthen supervision and regulation, and
improve the tax and fee system”.
To ensure orderly, stable, efficient and green
exploration and production and the efficient
allocation and use of oil and gas resources,
464
S. Yaodong and A. Gillespie
resources should be planned in a holistic manner.
The survey, assessment and exploration of
domestic oil and gas resources should be
strengthened, and the resources developed in an
orderly and cost-effective way to improve China’s domestic supply capacity. China should also
actively develop overseas resources to diversify
imported oil and gas supply, thus lowering risk
and enhancing supply security.
Different targets and interests should be
acknowledged. Economic returns and social
benefits should be combined organically. Public
interest should be better protected. Oil and gas
supply capacity and quality should be improved
to make high-quality, clean and affordable oil
and gas resources widely available to the public.
5.3.3 Objectives of Reform
Market-oriented reform of the oil and gas value
chains should be accelerated, as required by the
Central Committee of the Communist Party of
China and the State Council in the Opinions on
Deepening the Reform of the Oil and Gas System. This will be achieved by capitalising on the
strategic opportunity to deepen reform of the oil
and gas sector, thanks to the abundant supply
resources available in the international oil and
gas market and low oil and gas prices. The goal
is to build a modern oil and gas market that has
been opened up in an orderly fashion, featuring
fair competition, effective regulation and governed by laws. By 2030 the market will play a
decisive role in allocating oil and gas resources
and government will play a more efficient role.
Oil and gas supply capacity and efficiency of use
should be improved rapidly, and the substitution
of energy types should be realised as soon as
possible. In this way, economical oil and gas
resources will be available to people, and the
strategic objectives of energy production and
consumption will have been achieved.
More effort should be channelled into restoring the commodity attributes of oil and gas to
allow prices to be determined by supply and
demand. Government focus will shift, from
intervening in operations and setting prices for
oil and gas producers to developing strategies,
plans, policies and rules to create a fair market.
Government should strengthen its regulations on
market access, transactions, monopolised segments, pricing and costs. It should also improve
the standards, rules and procedures of the regulatory process to create a standardised, orderly,
open and transparent supervisory and regulatory
system.
Oil and gas supply capacity and energy efficiency will be improved. Reform of the whole
value chain should be deepened to make the
competition-based segments of oil and gas
companies more dynamic. Technical innovation
should be pushed to reduce production costs and
improve supply capacity. Other targets include:
using domestic as well as overseas resources;
mitigating market risk; improving transmission
and service; improving oil and gas use efficiency;
ensuring strategic oil and gas security; and
operating safely and cleanly along the whole
value chain.
The substitution of energy types should be
achieved as soon as possible. Petroleum consumption should be guided. The proportion of
natural gas should be increased significantly to
develop natural gas into one of the main energy
sources as soon as possible, thereby achieving
the strategic objectives of energy production and
consumption.
5.3.4 Pathways to Reform in the Oil
and Gas Sector
To achieve the above objectives, oil and gas
sector reform should be as follows.
(1) Reform the oil and gas mining rights
management system and establish a mining rights market
Reform of the oil and gas mining rights management system should “be market-oriented,
diversify investors in an orderly manner,
strengthen supervision and regulation, and
improve the tax and fee system”.
To ensure orderly, stable, efficient and green
exploration and production and the efficient
allocation and use of oil and gas resources,
464
S. Yaodong and A. Gillespie