Abstract:

China's oil industry has developed into manhood stage. The reserves in East China are characterized by lower annual grouth rate with large absolute meserves, slow decrease of residual recoverable reserves and oil production, but there is still a potential to develop oil production and slow down the decrease. As for Northwest China and China's sea area, petroleum provinces for strategic replacement and strategic reserve regions will be realized within 10 years. This is the decisive facter in determining the tendency of early 21st centoury's oil production. It is important to attract foreign capital and bring in advanced technology so as to improve China's oil industry; to develop and make full use of the broad oil market in order to ensure the demand for oil of China's sustainable econonic growth.

Key words: oil exploration and development, strategic replacement, east oil region, northwest, sea area, oil market abroad