"Vanguard" hand in Answer: We Are Acting on Energy Saving and Emission Reduction

      The SASAC required the petrochemical industry complete the energy saving and emission reduction index a year ahead, therefore the situation of energy saving and emission reduction will be more severe in these two years. The three major oil companies (China National Petroleum Corporation, China Petroleum & Chemical Corporation, China National Offshore Oil Corporation) lived up to expectations, while expanding their company scales, they have reduced the energy and material consumption continuously, establishing a new benchmark for harmonious development.

      According to the deployment of Major Tasks for 2008 of State Council, the National Development and Reform Commission and environmental protection department will spend a lot of effort in implementing the Eliminate Backward Production Capacity Plan in electricity, steel and other industries, establish eliminate and exit mechanism of backward capacity, focus on energy saving of key enterprises, and accelerate the implementation scheduling of ten key energy conservation projects. Meanwhile, based on the support of technological development, it will develop and promote advanced and applicable technologies of conservation, substitution, recycling resources and pollution control.

      As data shows, energy consumptions per GDP in 2007 reduced 3.27％ in China, saving 89.8 million tons of standard coal, and the emissions of sulfur dioxide and chemical oxygen demand were reduced by 4.66% and 3.14% respectively, achieving "double reduction" for the first time. Despite this year achieved significantly improvement compared with the previous year, however, there is a considerable gap with the overall objective requirements of the "Eleventh Five-Year".

      In accordance with the requirements of the SASAC, the unit consumption index of major products of petroleum and petrochemical industry in 2009 should reach or approach the international advanced level; compared with 2005, the energy consumption of value added of ten thousand yuan should drop by 16%, the sulfur dioxide emissions should decrease by 9.3%, chemical oxygen demand emissions should decrease by 8.4%; and value added per unit of fresh water use ratio should decline by 24% compared with 2005.

      SASAC intention was clear – the petroleum and petrochemical companies must complete emission reduction targets of the "Eleventh Five-Year" a year ahead, i.e. in 2009.

      However, with the main oilfields of eastern part have entered the middle and later periods of development in succession,the water content, liquid production and water injection rate increase continuously, increasing the difficulty of reducing consumption and emission. Meanwhile, all oilfields are confronted with such problems as the serious corrosion and aging of production equipment, relatively backward technology, poor working parameters, and reduced efficiency. In Daqing Oilfield, the number of pipeline and containers with the running time of over 10 years is more than 40%, and the pump equipment running more than 10 years is over 27%, posing significant resistance to energy saving and emission reduction.

      In the field of refining, crude oil of inferior quality and product quality requirements increase continuously, increasing the pressure of rising energy consumption and emissions of production equipment, and also increasing the difficulty of energy saving and emission reduction.

      In face of heavy pressure, the petroleum and petrochemical companies faced these difficulties and lived up to public expectations. In recent years, the three major groups continue to accelerate structural adjustment, change the mode of production, eliminate backward technology and equipment, and based on independent innovation, develop practical strategicplanning and improve relevant systems, so as to hand over a satisfactory report card to the society.

      Since 2006, China"s total oil energy consumption growth has got effectively controlled, keeping fresh water consumption under negative growth for six consecutive years; the comprehensive utilization level of resources has been raised, and the indicators of main energy consumption and water unit consumption maintained a downward trend. At present, the cumulative energy savings achieved 3.76 million tons of standard coal and 158.6 million cubic meters of water, completing 56.97% and 62.2% of the "Eleventh Five-Year" respectively.

      Combined with key energy saving and water saving projects of the "Eleventh Five-Year", China Petroleum Group will arrange a special funds of 10 billion yuan for energy saving, to implement key energy saving projects. Meanwhile, it plans to invest 12.15 billion yuan to implement 415 emission reduction projects and the "Ten emission reduction projects", so as to ensure overall decline of pollution reduction targets.

      In energy saving tide, Sinopec also has done a good job. From 2005-2007, Sinopec arranged 11.4 billion yuan investment in energy saving projects, gradually increasing production in crude oil, crude oil processing volume and ethylene year by year. While the crude oil quality declined, the energy consumption, material consumption, and pollutant emission achieved significant

decrease year by year.

      China National Offshore Oil Corporation is the first to propose "complete the energy-saving target one year ahead" among the three companies. 2007 is the energy-saving and cost-reducing year of China National Offshore Oil Corporation. In this year, the energy consumption of China National Offshore Oil Corporation is 4.802 million tons of standard coal, comprehensive energy consumption of ten thousand yuan is 0.3080 tons of standard coal, and comprehensive energy consumption of value added of ten thousand yuan is 0.4746 tons of standard coal, implementing energy-saving of 116,000 tons of standard coal.