China will cut the output of oil by 2020 and boost the domestic market for natural gas, the National Development and Reform Commission said.
The domestic annual production of oil is set to be around 200 million tons by 2020, down 6.5 percent from 214 million tons produced in 2015, the country's top economic planner said in a five-year (2016-2020) plan on oil and natural gas development yesterday.
By contrast, the annual output of natural gas is expected to grow by an annual average of 8.9 percent in the coming years to 207 billion cubic meters in 2020, which "should be used to replace fuel oil in sectors such as automobile and shipping," the NDRC said.
The cut in production will compel oil giants such as China National Petroleum Corp to expand overseas. Its crude business gained 4.3 percent last year from 2015 and the company will "stick to a 'globalization strategy' in the coming years and enhance global cooperation in exploitation and trading," said Chairman Wang Yilin.
The proven reserves of crude oil are set to reach 42 billion tons by 2020, up 4.89 billion tons from 2015, while those of natural gas are seen to rise by 3 trillion cubic meters to 16 trillion cubic meters.