ABSTRACT
This chapter briefly analyzes trends in the crude petroleum supply, before turning to the downstream sector—refining, petrochemicals, and chemical fertilizers. Trends in the downstream petroleum sector can best be understood in the context of current and projected crude petroleum supplies. China's Seventh Five-Year Plan calls for the production of 150 million tons per year of crude petroleum by 1990. China's downstream petroleum industry is one of the largest in the world, having more than 2 million barrels per day of total crude oil processing capacity, with annual throughput currently running about 1.6 to 1.7 million barrels per day, for a utilization ratio of roughly 80%. The availability of foreign exchange generated by crude and products exports is more than sufficient to pay for China's fertilizer, petrochemical, and petroleum equipment imports. The positive balance of foreign exchange earnings generated by the petroleum industry will be an important factor determining future levels of investment and technology import for the petroleum industry.
