“The intensification of the riots in North Africa has seriously threatened the security situation in the region and directly affected international oil prices.Since the end of last year, international oil prices have risen by 50%.According to the NDRC Research Center, by the second half of the year, international oil prices are likely to double from the end of 2003 to $60 per barrel.”

In the large conference room of the National Development and Reform Commission, Wang Zhenbin, the director, introduced the energy situation to the officials of various ministries and commissions who were invited to attend the meeting.

Han Hong, deputy director, added: "OPEC's explanation for this matter is that the turmoil in North Africa has affected oil production.But in reality, this is a planned price increase by OPEC, aimed at making its voice heard in the international political arena.After the Iraq war, there was frequent political turmoil in several countries in the Middle East and North Africa, and the unrest in North Africa was only one of the more serious.The Governments of the Middle East and North Africa believe that this is the United States' meddling in the affairs of the region and have therefore resorted to oil-limiting methods to the world economy in order to obtain the necessary voice.”

“But it is we who are most affected.”A director from the SASAC lamented that “due to the rise in oil prices, the cost of production enterprises has risen sharply, which has greatly affected the competitiveness of our export commodities.”

"The United States itself is a big oil producer, and the impact of rising international oil prices on the United States is small, but it has a great impact on us."OPEC is trying to put pressure on us.”An official from the Ministry of Finance said.

“We are too dependent on imported oil, and I have long said that important resources must not be in the hands of others.In the past few years, the NDRC has invested in several large refineries, specifying the use of high-sulfur oil in the Middle East.I was against it at the time, the oil bullies in the Middle East are not credible at all, now you see, we built the refinery, people's crude oil prices rose, we can't do it."An old man with white hair said with a proud face.

Han Hong glanced at the old man and recognized that this man was named Qiu Jianxing, who was originally a vice minister in a certain department, and after retirement, he went to a trade association as chairman.Lao Qiu Qi has always opposed the development of an export-oriented economy, and it was indeed opposed to the import of high-sulfur crude oil in the Middle East.

"Minister Qiu's opinion is very reasonable, but our NDRC also has its own difficulties.Our country’s economy is growing so fast that oil demand is up more than 50 percent from five years ago.Such a large oil demand, completely dependent on self-production is impossible, all the domestic oil fields can only guarantee 70% of the crude oil supply, and once full horsepower, the existing proven reserves can not support even 10 years.When our own ground crude oil runs out, people will have to get our necks, and we will not even have the strength to slow down.”

Han Hong made a warm answer, in fact, the words of Qiu Jianxing back.Not dependent on imported oil, it sounds correct, but it doesn’t have any operability.China is not an oil-rich country, and it is entirely a fool's dream to rely on its own oil to modernize.After all, oil is a non-renewable resource.Buried in their own land, when you want to harvest, while the international market can still buy oil, first use other people's oil, what is wrong?

The officials attending the meeting also understood this truth, and the words of Qiu Jianxing, everyone listened to it, and no one would use it as a decision-making guide.The former finance ministry official opened the topic and asked Han Hong: "Director Han, in the face of rising oil prices, the National Development and Reform Commission has any considerations."What are you asking for these people today?”

Han Hong said: “The rise in oil prices is a big trend.As I said just now, the NDRC Research Center predicts that by the second half of the year, oil prices may rise to $60 a barrel, and the pessimistic forecast for next year is $80, which will have a great impact on our economy.Please come here today, one is to vent to everyone, so that the ministries can prepare for the rainy day and prepare for the further rise in oil prices.The second is to discuss the response at the national policy level.”

"The rise in oil prices will inevitably push up the production costs of production enterprises, which in turn affects the factory prices of industrial products."Our Price Division hopes that the SASAC can guide its subordinate enterprises to digest the cost pressure as much as possible, so as not to transfer the cost pressure downstream.The consumer price index should be controlled within 103% in the next two years, and if it exceeds this level, the pressure on people's lives will be too much."An official of the NDRC’s Price Division said.

“In terms of foreign trade, how to absorb the pressure of rising crude oil prices and ensure that foreign trade exports are not affected is also a big problem.”Another foreign trade administration official said.

“Createment of key projects cannot be affected by this...”

“In agriculture, it may be necessary to give some financial subsidies...”

Each NDRC official has made a request from his own area of responsibility, and the officials of the ministries who came to the meeting have made a note of this request, and also put forward a request for the NDRC.As a macroeconomic coordination unit, the National Development and Reform Commission is equivalent to the nerve center of the national economy, and it needs to bring together the opinions of various departments, and then transform them into instructions to various departments.Communication like this is an ordinary job for the NDRC.

Seeing the end of the exchange with the various ministries, Han Hong changed a relaxed expression and smiled and said, "I just said that today's meeting has two topics."One is to communicate and coordinate with the ministries and departments present, to jointly deal with the pressure brought about by the rise in oil prices, this has just been fully talked about, and then the departments and bureaus of our National Development and Reform Commission will maintain communication with you and implement specific measures.The second issue is how we can counter OPEC’s price hikes so that they can keep oil prices at reasonable levels, or at least at a reasonable level for China.Just now, Minister Qiu said that as soon as the price of crude oil rises, we can't do it, I want to ask you to come up with ideas and see if there is any way to hit OPEC's momentum, so that they dare not arbitrarily raise prices."

"Well, the oil is buried under people's feet, people want to rise and rise, what can we do?"Qiu Jianxing said with a cold smile.Just now, everyone discussed the countermeasures to deal with the rise in oil prices, and threw him to the side, and the old man held a breath.Now Han Hong has pulled the subject back on him, and he has no reason to ridicule it.

“Minister Qiu, I can’t say that either.The sale is a matter for both parties, the seller can make a quotation, and we can also counter the price.We in China, as a big buyer in the international oil market, have a certain bargaining power.”Wang Zhenbin said.This should have been said by Han Hong, but Han Hong is the leader, after all, it is not appropriate to be so popular, Wang Zhenbin, as a subordinate, should come out to help.As for Qiu Jianxing, who was once a vice minister, higher than Wang Zhenbin, this is not to be considered, Wang Zhenbin is helping Han Hong to speak, and Han Hong will naturally cover him.

Qiu Jianxing was choked by Wang Zhenbin, and he was really angry, he said: "Director Wang, you said we have bargaining power, how can I not see it?"Our new ten million-ton refineries are designed according to the refining of high-sulfur oil in the Middle East, if people do not sell oil to us, we will stop production of these plants, what kind of confidence do you have to negotiate with others?"

“Minister Qiu’s words are not enough.”An official sitting in the corner of the conference table said, "People don't sell us oil, our factory is indeed going to stop production, there will be losses."But the other side of the oil can not sell, the same is the loss.We lost the profits of several factories, which is fully affordable.If the oil producers in the Middle East have slow oil sales, it will not take too long, it will only take a few months, enough for their economy to collapse.Minister Qiu believes that there is no more confidence on which side?"

“It’s very light!”Qiu Jianxing glanced at the official and said, "I remember the construction funds of those factories, which was borrowed from the Middle East by General Manager Feng?"At that time, the NDRC also reported as an achievement.I said at the time, this is actually a set that people give us, we don't know how to drill into the set.Now that people have taken the mouth, General Manager Feng told me, how are you going to solve this set?”

The official who spoke was Feng Xiaochen, the general manager of the National Equipment Industry Company, and the second half of the agenda of today's meeting was actually to be played by him.A few years ago, he presided over a low-interest loan from the Middle East and built several large refineries, all of which were built according to the specifications of refining high-sulfur oil in the Middle East.At that time, Qiu Jianxing was still in office, and indeed said some words about the matter, but everyone took it as air and ignored it.Qiu Jianxing was in trouble at this time, in fact, to find the face of the year.

"Gentlemen, the second thing I have just said is that Comrade Xiao Chen proposed it."Han Hong took over Qiu Jianxing's words and said to the crowd: "In fact, a few years ago, when the equipment industry company led the construction of three ten million-ton refineries, Comrade Xiaochen raised the issue of preventing the risk of rising crude oil prices in the Middle East, which coincides with the view of Minister Qiu."However, the plan put forward by Comrade Xiaochen is not to refuse Middle East crude oil, but to practice internal strength and accumulate cards, so that when oil exporting countries in the Middle East take oil as a weapon, we can have the power to fight back.Now that Comrade Xiaochen and Minister Qiu predicted the situation has indeed happened, we ask Comrade Xiaochen to tell us how the equipment industry company intends to counter the challenge of the oil-exporting countries in the Middle East.“Wow, do you want to sit down with me?”

In the last sentence, Han Hong said with a smile to Feng Xiaochen.The position of the leader, of course, can not be casually let others sit, Han Hong only in this way to everyone, Feng Xiaochen to say the meaning, is the NDRC leadership agreed, we can not underestimate the general manager of the equipment company.