Energy Profile - China

(Pop.: 1,408 mi; GDP: US$ 19.7 tri; PPD GDP: US$ 39.2 tri; debt: 88% of GDP; tax burden: 21%; prim. energy use: 4,343 Mtoe; electricity use: 10,100 TWh; inst. capacity: 3,400 GW; self-sufficiency: 80%)

  

Recognized for its strong growth over the past three decades, the Chinese economy has been accompanied by a significant increase in the country’s energy consumption.  To cope with this spectacular growth, China currently uses a staggering amount of energy, equivalent to 25% of global primary energy consumption [SPR, 2023].

  

China energy profile

  

China's economy is based on fossil fuels, which represent more than 83% (in 2021) of its total energy consumption. Coal, a vital resource of the Chinese economy, supplied about 55% of China’s total energy consumption in 2021 (70% in 2001), mainly supporting heavy manufacturing industries, power generation, and the construction sector.  The Dragon consumed over 4 billion tons of coal in 2022, more coal than the rest of the world combined [VC, 2023].

  

In parallel, China's oil demand has expanded dramatically, with daily crude consumption reaching approximately 16 million barrels per day (mb/d).  However, domestic crude production supplies only around 4.3 to 4.5 mb/d, creating a structural supply deficit that leaves the country dependent on imports for over 70% of its petroleum needs.  To mitigate supply disruption risks, China has built one of the world's largest crude oil stockpiles (combining strategic & commercial reserves) with an estimated total storage capacity exceeding 1.8 to 2.0 billion barrels.  Figure 1 shows primary energy consumption in China in 2021.  But the world’s second-most populous country is shifting toward cleaner energy.