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BIZCHINA / Energy/Mining |
Oil security at seaBy ()
Updated: 2007-06-14 11:45 As globalization weaves our production and consumption more closely into the world economic fabric, we have also developed a higher degree of dependence on outside oil supplies. This is only natural, as we are producing for the world. To make sure our factories do not starve, our economy stays fit, and the world market does not suffer, we need to secure oil supplies. This is not a problem at home. All our oilfields are operating well. New reserves are being located and utilized. But as the world's second largest oil importer, our overseas supplies are vulnerable. Inadequate ocean shipping capacity is a weakness that could prove fatal. We have cause for worry with around 85 percent of our entire oil imports transported by foreign-flag vessels. This is acceptable when business is just business. But we are not in a perfect world. The best way to minimize our vulnerability is to increase our preparedness for less than normal times. It is well within our reach to have more than 60 percent of our oil imports carried by Chinese-flag tankers, if that is what we need for oil security. The government should not economize on this strategic national interest. It has the financial resources to make it happen. The subsequent shipbuilding orders will in turn be a major boost to home shipyards. The authorities' idea to encourage more domestic shipping companies to enter the ocean-faring business is a good one. While increasing the overall capacity of maritime transport, this move is conducive to competition and thus to better service. We can also handle the technology. Several domestic shipyards have been building large crude oil carriers for years. We applaud the Ministry of Communications' determination to upgrade our self-reliance in ocean shipping. It is an insightful decision that will help guarantee a more comfortable position in the kind of special times we hope will never come. (For more biz stories, please visit Industry Updates)
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