China says crude oil is still its main energy source

China says crude oil is still its main energy source

President Xi Jinping said that China must secure oil as its main source of energy. Xi's remarks to oil workers indicated that China still relies on fossil fuels for its industry.

Ummatimes - Reported by Bloomberg, on Thursday (10/21/2021) Xi visited an oil field in Shengli, eastern province of Shandong. The oil field is the largest field operated by China Petroleum & Chemical or Sinopec.

"Oil energy construction is very significant for our country. As a major manufacturing power, China must secure its energy supply in its own hands," Xi said.

1. China promises stable electricity supply amid energy transition

Even if China is committed to limiting greenhouse gas emissions, Xi's remarks signal that Beijing still uses crude oil as its main source of energy. Last month, Xi also visited a factory that processes coal into chemicals in Shaanxi Province.

Sinopec has positioned itself as a national leader in developing hydrogen as a clean energy source.

Chinese leaders are trying to minimize disruption as the energy crisis rattles the world's most important manufacturing hub. Last week, Premier Li Keqiang pledged to ensure electricity supply to factories, after saying the road to a greener economy needed to be supported by a stable energy supply.

2. China promises not to fund coal projects overseas

Last month, Xi said his country would not fund coal-fired power projects overseas. On the contrary, China promised to help developing countries in promoting and increasing renewable green energy.

"China will increase support for other developing countries in developing green and low-carbon energy, and will not build new coal-fired power projects abroad," Xi said, quoted by Al Jazeera.

Xi's remarks follow policies that South Korea and Japan started in early 2021.

3. China's commitment is considered good to welcome COP26

China made its commitment hours after US President Joe Biden announced plans to double financial aid to poor countries. By 2024, Washington will provide $11.4 billion to help poor countries switch to cleaner energy.

While Xi's speech was not very detailed, the initiative could be a precious moment ahead of COP26, the UN's global climate talks in Glasgow, Scotland at the end of October.

“This is a very important moment,” said Xinyue Ma, an energy development finance expert at Boston University's Center for Global Development Policy.

So far there has been no change in Xi's intention to attend COP26. He was scheduled to attend the nearly two-week show online.