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The Prime Minister's report did not mention the word oil

Before the Two Sessions, public opinion played a crucial role in shaping the discussion around this year’s key topics. Among them, oil emerged as one of the most prominent issues. On one hand, international oil prices have surged rapidly over the past two years. On the other, domestic demand for crude oil has also risen sharply. As a result, "oil" has become one of the most frequently mentioned terms in the "Eleventh Five-Year Plan." Can it really be considered anything less than a major national issue? However, what surprised many was that in Premier Wen Jiabao’s government work report, terms like “energy shortages,” “energy strategies,” and “energy reserves” were notably absent. Even the word “oil,” which had always been a staple in previous reports, was nowhere to be found. Did the premier forget to mention it? Of course not. In fact, just before the Two Sessions, the Chinese government was actively negotiating oil cooperation with countries like Iran. Energy has now become a top priority for global leaders. In the first two months of this year, energy issues became a central part of the presidential agendas of several nations: French President Chirac proposed preparing for a “post-oil era” as a “major event of the century,” emphasizing nuclear energy expansion to improve energy security. U.S. President Bush introduced the Advanced Energy Plan during his State of the Union address, aiming for energy independence. Japan also announced plans to release a new national energy strategy, targeting a reduction in oil dependence from 50% to below 40% by 2030. Meanwhile, energy issues will be a central topic at the EU summit in late March and the G8 summit in St. Petersburg in June. Given this intense global competition, how could Premier Wen possibly ignore energy? Upon re-reading the Prime Minister’s report, the reporter realized that he hadn’t forgotten about energy at all—he had simply chosen to focus on energy conservation. In fact, energy strategy was woven throughout the speech, but under a different name. The emphasis was on energy saving. Premier Wen even stated that this year, energy conservation and emission reduction would be incorporated into the statistics and evaluation system of economic and social development, along with an information release mechanism. Starting this year, the energy consumption per unit of GDP for each region and major industries will be published annually. This shift is significant. For a long time, China was overly confident in its vast resources. But when reality hit, it became clear that China is among the world's most energy-wasteful countries. To achieve the same level of economic growth, China uses far more energy than many developed economies. According to data from the National Energy Research Center, China consumes 2.5 times more energy than the U.S. and five times more than the EU for every $1 million of GDP. In 2003, China used 10% more energy per ton of steel produced than the U.S. Power plants in China consume 20% more energy per kilowatt-hour than those in the U.S. Chen Geng, general manager of China National Petroleum Corporation, noted that the overall efficiency of crude oil utilization in China is ten percentage points lower than that of developed countries. Improving energy efficiency could solve many of China’s energy challenges. This point has been repeatedly emphasized by renowned industrial engineering expert Mao Songsong, who has advised the Central Government on this matter. He openly criticized the lack of attention given to this issue by top leaders. Many experts, both domestic and foreign, have raised similar concerns. This year’s government work report clearly addressed these voices. It showed that the Chinese government has recognized the urgency of energy conservation over merely increasing supply, especially for a country with a large population and growing international pressure. By adopting energy-saving measures as a national policy, the government has taken a step in the right direction. The reporter also noticed that in the draft of the "Eleventh Five-Year Plan" being discussed by delegates, there is a target to reduce energy consumption per unit of GDP by approximately 20% during the 11th Five-Year Plan period, and to cut total emissions of major pollutants by 10%. This marks a clear shift in China’s energy strategy.

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