China’s Energy Conversion: A Shift Towards Renewables Amid Rising Oil Consumption
Beijing, 2025 – China’s energy landscape is undergoing a critically important transformation, as highlighted in a recent report on the progress of the national and international oil and gas industry for 2024. The report, published in Beijing, underscores the country’s gradual shift towards environmental and low-carbon energy solutions, even as oil consumption is projected to reach its highest level this year.Renewable energy sources have become a cornerstone of China’s power generation capacity, marking a pivotal moment in the nation’s energy strategy. According to the report, “renewable energy sources are now a major part of the installation of power generation capacity,” while the consumption of petroleum products continues to decline. this shift aligns with global trends towards sustainability, as countries increasingly prioritize renewable energy to combat climate change.
China’s investment in non-fossil energy sources is a testament to its commitment to this transition. In 2024, the country accounted for a third of the world’s total investment in these sources. The electrification rate of final energy consumption has also risen to approximately 29%, reflecting a growing reliance on electricity over conventional fossil fuels. Meanwhile,the share of oil in the structure of primary energy consumption continues to decrease,signaling a long-term shift in energy priorities.
Despite this progress, oil remains a critical component of China’s energy mix. The report predicts that oil consumption will reach its highest level in 2025, driven by industrial and economic demands. Additionally, new oil and natural gas deposits are expected to remain at a high level, with oil deposits estimated at around 1 billion tons and natural gas deposits at 1 trillion cubic meters.
Key Highlights of China’s Energy Transformation
| Aspect | 2024 Data | 2025 Projections |
|———————————|——————————————–|——————————————|
| Renewable Energy Investment | 1/3 of global total | Continued growth |
| Electrification Rate | 29% | Expected to rise further |
| Oil Consumption | Declining share in primary energy | Highest level projected |
| New Oil Deposits | – | ~1 billion tons |
| New Natural Gas Deposits | – | ~1 trillion cubic meters |
This dual focus on renewables and traditional energy sources highlights the complexity of China’s energy strategy. While the country is making strides in reducing its carbon footprint, it continues to rely on oil and natural gas to meet its growing energy needs.
As China navigates this transition, its efforts serve as a model for other nations balancing economic growth with environmental sustainability. The report’s findings underscore the importance of continued investment in renewable energy while addressing the immediate demands of a rapidly developing economy.
For more insights into China’s energy transformation, explore the full report hear.
