"As prices for conventional oil products will remain high in the long run, heavy oil and alternative oil products will unavoidably become part of our energy segment in the near future," Zhang Fengjiu, deputy chief engineer of China National Offshore Oil Company (CNOOC), told China Daily yesterday at the first World Heavy Oil Conference.

Heavy oil a catch-all name for oil shale, oil sand and natural asphalt and natural gas hydrate are becoming increasingly important substitutes for conventional energy resources worldwide.

Zhang said that heavy oil production will hold a dominant position in his firm's business. "By 2010, the daily production of heavy oil will surge to 500,000 barrels from the current 200,000," Zhang said, adding that heavy oil will account for 60 per cent of CNOOC's total production then.

Jia Chengzao, vice-president of PetroChina, said his company is also interested in tapping heavy oil resources. But he said it is still too early to make any announcement.

As the cost of heavy oil exploration and production is high, Jia called for more government policy support.

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