Bottleneck and Solution

When the oil price has been vibrating at high level for nearly
two years, more and more people in the globe understand that
crude oil as an important energy resource is eliminating from
the earth irreversibly. Substitution for crude oil becomes a
highlight topic and important research project. Natural gas and
coal may serve human for a longer period, perhaps more than one
hundred years? But they will certainly come to the end. Which
kind of energy will continue to support the fast development of
human being and its economy? No one can give a simple solution.
    China's chemical players are also paying more attention to
the substitute energy. "Overheated investment, deficit of
energy and other resources, increased environment pressure and
other factors become the bottlenecks for the development of
petroleum and chemical industry," a source from China Petroleum
and Chemical Industry Association (CPCIA). "The good
performance in chemical industry absorbed hot money in the
period of 2001-2005, expansions and new constructions
distributed everywhere in the country, in particular in the
western region where energy and resources are abundant. The
targeting products in those new projects are similar to each
other, however. Therefore the risk of capacity surplus is
significantly large. And the pressure on energy supply and
environment protection will also be increased."
    Saving energy is placed in the first position for managers
in China's chemical industry. According to the statistics by the
National Bureau of Statistics of China, the energy consumption
per GDP increased by 3% in the first half for the chemical
industry. Yang Weicai, vice president of CPCIA commented three
suggestions on energy saving. The production segments with high
energy consumption, such as synthetic ammonia, refining,
ethylene, chlor-alkali, soda ash, calcium carbide and yellow
phosphorus manufacturing shall be paid more attention and
controlled. Large scale chemical firms will be strictly
supervised. CPCIA will actively promote energy saving measures
that included in the list by the central government. (CCR 2006
No.23 page 5)
    The chemical industry is ranked the first in the black list
by the State Environment Protection Administration. Around six
thousand projects under construction are close to river, lake
or living regions, forming potential hazard. Everyday we can
read more than one item of accident taken place in chemical
sector. The officials in the State Supervision and
Administration Bureau of Safe Production may be judged as the
busiest people.

Zhong Weike
September 28th, 2006