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Heavy oil to help lighten China's energy load

By Wang Yu (China Daily)
Updated: 2006-11-14 08:38

Bob Lockwood, president and chief executive officer of Cambridge Energy Research Associates, based near Boston, Massachusetts, said China National Petroleum Corporation (CNPC), PetroChina's parent company, is also targeting global heavy oil resources by working closely with his organization.

"We have hammered out a memorandum of understanding (MOU) with CNPC, mainly studying options of bringing more heavy oil resources from Canada to China," Lockwood said. "I believe the MOU can expand beyond that scope to joint research on technology innovation and investment options."

CNPC and the government of the Canadian province of Alberta initiated the four-day global heavy oil conference, which opened on Sunday. Canada is rich in heavy oil.

Ma Kai, head of the National Development and Reform Commission, said at the opening of the conference: "The government should encourage and support the development of heavy oil, in line with its 11th Five-Year Plan (2006-10)."

Unconventional forms of oil and gas, such as heavy oil, are important to China's energy industry, according to the 11th Five-Year Plan. Currently, heavy oil accounts for 20 per cent of China's total oil reserves, said Ma, the top economic planner.