Oil price hike has positive impact on China's energy structure update, experts

Soaring oil price kept for a certain time will exert positive impact on China's energy structure update, domestic experts said, according to a Hong Kong-based Ta Kung Pao report.

The oil price hike this time will have far-reaching influence on China's energy structure update and the smooth promotion of energy-saving techniques.

The high oil price will pressure enterprises and the society to actively explore energy-saving techniques and facilities and therefore push forward reasonable update of energy structure, said Wang Wanxing, person in charge of China Sustainable Energy Program.

The high oil price will also urge consumers to be more frugal with oil and to seek for oil substitutes, which is of positive significance for improving energy efficiency and saving oil resources, said Wang.

Gao Shixian, assistant research fellow of the Energy Research Institute of the National Development and Reform Commission, agreed on the economic effect of high oil price.

According to estimations by the National Bureau of Statistics, if the per barrel price of crude oil keeps $10 higher in one year, its impact on China's resident consumption index will be between 0.3 and 0.4 percentage points.

The current crude oil price on the international market, as a matter of fact, hasn't hit its historical record. During the second oil crisis period, the international energy price equaled to today's $80 per barrel in real term. That may explain why many experts still remain optimistic about the Chinese economy.