ABSTRACT

China ' s production of primary energy increased nearly forty times between 1949 and 1987 . China now ranks fourth in the world as a fuel producer, and third as a fuel consumer. There is low per capita fuel con­ sumption , and China is a very inefficient energy consumer, although there has been an improvement in recent years . There have been pro­ longed energy shortages since the 1 960s , and it is estimated that at pre­ sent roughly 20 per cent of industrial capacity suffers from fuel shor­ tages . Household energy consumption has also had to be kept at a low level . Coal is the main commercial fuel , followed in importance by oil . Biomass and other non-commercial fuels account for over 80 per cent of rural energy supply , while 80 per cent of total rural energy is con­ sumed in peasant households . 1

China 's aim is to quadruple her GVIAO (Gross Value of Industrial and Agricultural Output) between 1980 and the year 2000 , but even the most optimistic estimates foresee only a doubling of primary energy pro­ duction during this period . Coal reserves are ample , but accessible oil reserves are a cause of anxiety . More oil and gas will be needed from inland , offshore and unconventional sources , such as oil-shale, which is abundant . Hydroelectricity output is expected to quadruple by the year 2000 . China now relies almost entirely on its own energy resources . It exports large quantities of oil , but oil exports are likely to fall , whereas coal exports are planned to grow . From the regional perspective there are definite problems . Some 40 per cent of total national output is produced by , and nearly 40 per cent of population are located in, eight provinces of South and East China . These provinces have measured coal reserves of only 2 per cent of the national total . Oil also is unevenly distributed, and hydroelectric power is often inaccessible. Consequently , as detailed in chapter 5 , the transport of energy is a major concern for the economy . For example , the transport of coal accounts for 33 per cent of the annual throughput of railways, 20 per cent of waterways and 25 per cent of highways.