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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 stood out as a central issue. Over the past two years, international oil prices have surged rapidly, while domestic demand for crude oil has also skyrocketed. As a result, "oil" became one of the most frequently mentioned terms in the "Eleventh Five-Year Plan." Given the significance of energy to national development, it was natural for oil to be considered a major topic of the sessions. However, what surprised many was that Premier Wen Jiabao’s government work report did not explicitly mention key energy-related terms such as "energy shortages," "energy strategies," or "energy reserves." Even the word "oil," which had always been a staple in previous reports, was notably absent. Did the premier forget to address the issue? Of course not. In fact, just before the sessions, the Chinese government was actively engaging in oil cooperation talks with countries like Iran. Energy has become a top priority for global leaders. In the first two months of this year, energy issues were central to the schedules of several world leaders: French President Chirac proposed preparing for a “post-oil” era, emphasizing nuclear energy to boost energy security; U.S. President Bush introduced an advanced energy plan aiming for energy independence; and Japan announced plans to reduce its oil dependence from 50% to under 40% by 2030. Additionally, energy issues were included in the EU summit agenda and would be a key topic at the G8 summit in St. Petersburg. With such intense global competition, it’s hard to believe Premier Wen overlooked the issue. Upon re-reading the report, the reporter found that the premier had not forgotten energy at all. Instead, he focused on energy efficiency. He emphasized that energy conservation and emission reduction would be integrated into the evaluation system for economic and social development. Starting this year, annual reports on energy consumption per unit of GDP for each region and major industries will be published. This is a significant shift in policy. For a long time, China has relied on its vast resources, but the reality is that it now faces one of the worst energy waste problems globally. To achieve the same level of economic growth, China uses far more energy than developed nations. According to data from the National Energy Research Center, China consumes 2.5 times more energy than the U.S., five times more than the EU, and nearly nine times more than Japan per $1 million of GDP. In steel production, China uses 10% more energy than the U.S., and power plants consume 20% more energy per kilowatt-hour. Chen Geng of China National Petroleum Corporation noted that China’s overall crude oil utilization efficiency is 10 percentage points lower than that of developed countries. Improving energy efficiency could solve many of China’s energy challenges. Renowned industrial engineering expert Mao Songsong has repeatedly advised the government on this matter and criticized the lack of attention from top leaders. Many experts, both domestic and foreign, have raised similar concerns. This year’s government report clearly addressed these issues. The Chinese government recognized that, given its large population and global pressures, energy conservation is more urgent and effective than simply increasing supply. It has embraced suggestions from experts at home and abroad, making energy saving a national priority. The reporter also noticed that in the draft of the Eleventh Five-Year Plan, delegates discussed reducing energy consumption per unit of GDP by about 20% and cutting major pollutant emissions by 10%. This marks a clear shift in China’s energy strategy.

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