Yu Baocai--Vice President of China National Petroleum Corporation

Summary:

1. Oil production and consumption will have steady growth in China. Oil supply shortage in China is increasing. Oil resources have the potentials of sustainable development. Recoverable reserves are growing steadily. Oil consumption in China will continue to grow steadily as the country is moving ahead with industrialization and urbanization.

2. China's natural gas industry enjoys rapid growth. China has rich natural gas resources. Unconventional natural gas with promising prospects will have strong growth in production.  China's natural gas consumption has been growing rapidly and will continue as the country is vigorously promoting energy conservation, emission reduction, and a clean energy policy.

3. China's oil and gas trade in the global context. China, with its growing demand, will become a stable market for the international oil and gas industry. Oil and gas trade will be essential to stable domestic supply. As economic globalization and trade liberalization move ahead, China will be a full and active player in global oil and gas trade. It will strengthen cooperation with major oil and gas producing countries and major traders in this industry, and become an important part of international oil and gas trade.

4. CNPC is pursuing green and sustainable development and international cooperation. CNPC is the largest oil and gas supplier in China. It is implementing three strategies on resources, market and international cooperation, and becoming increasingly stronger. In 2011, it ranked fifth among top 50 global petroleum companies. CNPC is committed to international trade. Its international trade business on crude oil, natural gas and petrochemical products has come a long way in the past decade. In 2011, it traded 250 million tons worth USD$192.1 billion.  CNPC has become more influential and competitive in the international market. Looking ahead, CNPC will vigorously promote international oil and gas trade, and work with other companies in other countries to jointly promote a harmonious and prosperous global oil and gas market.