New Thinking On China's Oil Trade

This paper aims at studying the methods and measures in expanding China oil trade, getting stable oil supply, and meeting the domestic oil demand to win the initiative position and defend China oil interest in the new period of 21 century.The direct demonstration of tables and figures shows that the gap between China oil's supply and demand in the future will continue enlarging and China oil foreign dependence degree tends to rise. With the introduction of the oil supply and demand functions and the change model of oil price, it shows that the oil price will still keep high. With the introduction of the long term fluctuating model, it concludes that the constitution of China's oil trade and the trade and management of the oil and petrifaction companies should base on the oil long term fluctuation. Through the comparative analysis of China, Japan and Korea, it elicits that China should broaden the friendly relationship with Russia, middle Asian countries and areas etc. and establish more land pipelines to import oil; make full use of all the comparative advantages in geographic location, funds technology etc. to cooperate with oil yielding countries in middle Asia, Africa, middle and south America and take part in the games of oil producing countries and consuming countries in the world oil market.The collection of the fuel tax and the market pricing of oil products help to adjust and control the increase of the oil consumption; China should make efforts to develop the oil future market to establish itself as an importance world oil future market; explore the land grottos, sea floor caves and natural salt caves to reserve oil.As long as China continues to enlarge the oil supply, adjust the oil demand, improve the oil using efficiency, China will safeguard the stability of the oil trade under the high world oil price and win the initiative position in the world oil trade.