Managing Energy Demand to Cope with High Oil Prices

At present, the international crude oil price keeps on innovating high. Under such a high oil price background, it is not easy for the country to obtain a sustainable energy balance. In response, Victoria Chu Pao, president of Platts Energy Information, pointed out in the Shanghai forum that “while China promotes economic growth, it can also achieve a balance of sustainable economic growth. In a high oil price world, China can obtain There are many opportunities."
First of all, Zhu Wenqing explained four factors that drove the international crude oil price to keep on record. The first is the depreciation of the U.S. dollar; the second is the effect of national governments' subsidies on fuel and oil prices, especially in Asia. So, despite the high oil prices, Asia’s demand for oil has not declined. Thirdly, everyone It is believed that the supply of oil will decline in the future. This is not necessarily the case. This makes everyone uncertain about the geopolitics of those oil-producing regions. Fourth, we see that there are many speculative participations in the financial commodity market. The role is to advance the elements of rising oil prices in advance.
Regarding the prospect of energy prices, Zhu Wenqing believes that “in the future, crude oil prices will undergo mid-term adjustment. After adjusting to 70 US dollars per barrel, the oil price will rise to a more stable level, which may be above 85 US dollars a barrel.”
Some experts also pointed out that energy demand can be controlled and managed. At the same time, there will be new supply sources for new exploration. In addition, the demand of financial investors will decline because the return on investment of other asset classes will be more attractive.
For China’s energy security policy, Zhu Wenqing suggested that “China must have a strategic perspective on this issue, especially the management of future energy needs.” Zhu Wenqing explained that to tackle this issue from a strategic perspective, first look at In the end, what is the main consumer industry? Like other countries, China’s transportation, transportation, construction, and industrial sectors will account for 90% of major energy applications. Therefore, the most important thing is to have the government and the industry work together in order to finally manage the future demand and achieve the balance of energy in the future.
He told reporters that China has great potential in this area. China is still carrying out infrastructure construction, so when it comes to managing energy demand, it can be considered from the perspectives of urban planning, building construction, public transport, motor vehicle standards, and new technologies. Reducing the actual level of energy use, reducing energy consumption, and changing the combination of fuel dependence is not something that can be achieved overnight. First of all, the government needs to take strong measures. Second, there must be sufficient talent supply in technology and scientific research. It will also provide corresponding capital input, establish a corresponding capital market and venture capital, and achieve transparency in information.
Zhu Wenqing pointed out that this is not just investing in alternative energy supplies, but managing the entire energy demand. The 21st century is a century in which Asia and other countries of the world get a balanced energy balance and sustainable development, and at the same time create a new economic growth model for all countries in the world.

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