Energy Bureau's Upgrading of Energy Fields "Seeing Only Enterprises Not Seeing Countries" Ends

The imminent birth of the new energy management agency has attracted the public's attention, as was the establishment of the Energy Bureau under the National Development and Reform Commission three years ago.

On April 28, the spokesman for the National Development and Reform Commission, Cao Yushu, confirmed to the media that the new agency managing China’s energy issues had been “approved”. It is understood that this new agency will be upgraded to a vice ministerial level on the basis of the original Energy Bureau of the National Development and Reform Commission, but it still belongs to the National Development and Reform Commission. The scale will also expand from the original 30 to 60 people.

It is not important whether the name is the Energy Office or the Energy Bureau. 'Cao Yushu said. It is rumored that this deputy ministerial energy regulatory agency is tentatively designated as the National Energy Office. The director of the new agency will be concurrently chaired by Ma Kai, director of the National Development and Reform Commission, and there may be several deputy directors. The current Secretary of Energy Xu Mingming and former general manager of Sinopec Ma Fucai are candidates for the deputy director. According to sources close to the National Development and Reform Commission, the final 'Sanding' plan has not yet been finalized.

Some people speculated that after the establishment of the office, it mainly played a role in coordinating and managing major ministries and energy companies involved in energy, formulating energy development strategies and plans, determining energy industry policies, and implementing various planning policies. Compared with the responsibilities set by the State Council to the Energy Bureau three years ago, it is still positioned in the formulation of macro policies and the balance of the total amount.

Researcher Zhou Fengqi, former director of the Energy Research Institute of the National Development and Reform Commission, said earlier that no matter what kind of method is used to strengthen energy management, it is a kind of progress. After all, China does not regard the Energy Bureau as an 'eternal stop' in this respect.

Strengthening management is inevitable

Perhaps Xu Mingming is embarrassed, but the outside world has always been criticized by the Energy Bureau as 'not acting'.

In April 2003, the Energy Development Bureau of the National Development and Reform Commission was established. The background at that time was that since China's market-oriented operation of energy companies in 1993, China’s energy market had only seen companies not seeing countries. The economic development has deepened China's reliance on energy, and this dependence and restriction have made the development of the energy industry more constrained. The twists and turns in the situation in Iraq in the second half of 2002 and the energy cooperation between China and Russia also made people realize that the country needs a separate energy authority.

However, two years later, China’s energy situation is still in trouble.

The 'electricity shortage, coal shortage, and oil shortage' that began in the second half of 2003 have continued to the present. Coal, electricity, and oil are both within the energy industry and are intrinsically linked to each other. In particular, the relationship between coal and electricity is more direct and close. The issue of low energy efficiency in China has become a bottleneck in economic development.

According to the Outline of the Energy Medium and Long Term Development Plan, China must make full use of both domestic and foreign resources and two markets to solve energy problems. China has already attacked the Middle East, Central Asia, Russia, and Southeast Asia to find energy. However, because of the 'insufficient investigations in the previous period and the lack of comprehensive planning,' China has missed many opportunities and even ran into a situation in which brothers and businesses compete for resources. The researcher of the East and West Research Center of the United States, Verreth Fisher, pointed out: 'The Chinese government needs active lobbying and public relations. '

How China's oil strategic reserve catches up after lagging behind the West for 20 years is now the most pressing issue. This is not a matter of establishing several oil storage tanks. Instead, it must establish a mature legal system, a sound oil reserve strategy, a unified management and supervision system, a sound petroleum financial system, and a mature market structure. This requires a higher level of energy management to implement.

Expect substantial breakthrough

At the beginning of this year, there were three arguments concerning the strengthening of energy management agencies: the establishment of the Ministry of Energy or the establishment of an energy committee led by a vice premier of the State Council. The third is to upgrade the internal energy bureau of the National Development and Reform Commission to a vice-ministerial level. 'Choose the last one just because it is the easiest. 'Industry experts pointed out that there is no administrative requirement or coordination of various departments.

The internal staff of the Energy Bureau said that the light processing nationwide energy approval project has given them no time to care about the other.

From 30 to 60 people, will the situation really change? 60 people are relative to the 1400 employees of the U.S. Department of Energy. An expert who is close to the core level believes that the Energy Office really needs to achieve dual functions of multi-sectoral decision-making and information support, and not 60 people can do it.

Ma Kai's taking immediate post should be said to everyone's expectation. However, how to coordinate the interests of various departments on the basis of national energy security will remain the heart of new energy authorities. Ma Fucai, the former General Manager of Sinopec, who resigned from the Kaifan County blowout incident, was very likely to serve as deputy director of the New Energy Bureau. This public company is known as the “hero” in the oil industry. It has worked hard for decades and it is understandable about the industry’s understanding, contacts and influence.

In 1993, the former Ministry of Energy was withdrawn from institutional reforms. From then on, China started from the opening of coal prices and implemented market-oriented reforms in several major energy industries. In 1998, the management functions of the three major oil companies were stripped and the main players in the energy market formed. The company’s presence is clear and even prominent in these industries. On the other hand, China's energy authority has been absent since 1993. China’s energy sector has thus long been in a state of 'seeing companies only, not seeing countries'.

'How to allow these companies to pursue their own interests, but also pay attention to the harmonious development of the entire society; how to reduce the impact of these giant companies on the decision-making, the new energy authorities will be no small problem. 'Industry experts pointed out. The proportion of electric power companies and oil companies in the total profit of state-owned enterprises should be about 1/3, and the contribution rate of the Big Three oil companies should exceed 40%.

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