Xinhua says that China, the world's second-largest oil consumer, imported 271 million tonnes of crude oil last year, a rise of 6.8% year on year (YoY), as demand remained high despite an economic slowdown. The value of the imports jumped 12.1% YoY to 220.67 billion US dollars.

Industry experts say crude imports are likely to reach around 285 million tonnes in 2013, with the country's crude import dependence rate exceeding 60% and rising to 66% by 2020.

The China Petroleum and Chemical Industry Association (CPCIA) said that China's crude oil output for 2012 increased 1.8% YoY to about 207 million metric tonnes and natural gas output will increase 7.5% to approximately 106 billion cubic meters. The crude oil and natural gas output for 2013 is expected to be 210 million tonnes and 115 billion cubic metres, up 1.5% and 9% YoY respectively.

CPCIA says the total profit of China's petrochemical industry for 2012 is expected to decrease 6% year-on-year (YoY) to CNY 750 billion.

China's two oil giants in the refining industry suffered greater losses in the first three quarters of 2012. Financial reports show that the refining business of PetroChina suffered a loss of CNY 30 billion during the period while China Petroleum and Chemical lost CNY 16.4 billion.

The government has also recently announced that shale gas reserves are now equal to natural gas reserves.

According to the preliminary evaluation by the Ministry of Land and Resources, China's recoverable continental shale gas reserves (excluding reserves in Qinghai and Tibet) at the end of 2011 were 25 trillion cubic metres, equivalent to the volume of conventional natural gas reserves. On current levels of natural gas consumption, this would meet the country's demands for the next 200 years.

According to the nation's shale gas development plan, China's shale gas output is expected to reach 100 billion cubic metres by 2020. As a result, the world's second largest economy could greatly reduce its imports of natural gas and reliance on liquefied natural gas, as well as change the current high dependence on imported oil and gas.