Li Yongwu proposed at the high-level forum on the economic situation of the industry in 2006: The oil and chemical industry must resolve four major contradictions.

On March 29, Li Yongwu, president of the China Petroleum and Chemical Industry Association, proposed at the high-level forum on the economic situation of China's petroleum and chemical industry in 2006 that China’s oil and chemical industry must resolve four major contradictions before continuing its development.

In the main report entitled “Transforming the Economic Growth Mode to Improve the Quality and Benefits of Economic Growth”, Li Yongwu fully affirmed the “Tenth Five-Year Plan” and the historical best achieved since last year, while also unavoidably pointing out that oil is constrained and Four major contradictions in the development of the chemical industry.

The first is to raise the contradiction between international competitiveness and the ability to independently innovate. Although the overall level of the oil and chemical industry has greatly improved, the international competitiveness of the industry is still very weak. The development of the petroleum and chemical industries in these years mainly relied on the introduction of technology, and the core technologies of independent innovation were few. The overall level of the chemical industry is 15 to 20 years behind the international advanced level.

The second is the contradiction between rapid development and resource shortage. The per capita reserve of coal in China's energy reserves is close to the world average. The per capita oil reserves are only 1/8 of the world's average, natural gas is only 1/25, and the import dependence is getting higher and higher. The contradiction between China's oil and natural gas supply and demand is very prominent. Domestic three major synthetic materials and organic chemical raw materials have only 50% of the domestic market share. Domestic potash fertilizer only accounts for 20% of consumption.

The third is the contradiction between the requirements for establishing a resource-saving society and the backwardness of industry technology and management. In 2004, GDP accounted for approximately 4% of the world's total, but it consumed about 12% of the world's disposable energy, 15% of fresh water, and 28% of steel. In the chemical industry of China, the energy consumed as raw materials accounts for 40% of the total energy consumption of the industry, and the energy consumption per unit of chemical production is 4.1 times that of the United States.

Fourth, the contradiction between the requirements for establishing an environment-friendly society and the lack of environmental governance. According to statistics, the discharge of waste water, waste gas, and solid waste in the petroleum and chemical industries is ranked first, fourth, and fifth in China's total industrial emissions. In particular, the pollution of wastewater and exhaust gas may cross national borders and affect neighboring countries.

It is understood that from March 29 to 30, the China Petroleum and Chemical Industry Association and the National Bureau of Statistics jointly organized this high-level forum. This is the first high-level economic forum held in the industry in the opening year of the “Eleventh Five-Year Plan”. All the representatives of the top 100 oil and chemical companies last year and the relevant leaders and experts from the National Development and Reform Commission, the State Council SASAC, and the National Bureau of Statistics attended the forum.

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