The petroleum industry in the People's Republic of China is strongly affected by the country's growing population and political ideology, as well as its lack of local oil reserves. It highlights the current set up of the government, their relationship with surrounding states, and steps they are taking to play a positive role in the worldwide community.

China

China has a growing population of over 1.3 billion people; therefore they rely heavily on other states for resources, such as oil. The Chinese government is taking diplomatic action to improve their relationship with ASEAN states. The Chinese government has to take extra strides to secure good relationships with its neighbors. Malaysia is a neighbor state that is often seen as in contention with China because of political differences. Yet, the relationship with Malaysia is symbiotic because of their large supply of oil and their need for security assurances from China. Malaysia is the number one producer of petroleum in the South China Sea, and they account for over one half of the production in the region.

A big role is played in China's oil endowment by its state owned oil companies, mainly China National Offshore Oil Corp, China National Petroleum Corp, and Sinopec.

Looking to capitalize on petroleum trade and also to participate in the growing demand and marketplace for the black liquid, China pursued domestic opportunities (before the 1950s importing all of its oil needs). Because of the relatively assembly line method behind Chinese oil exploration in the years following 1950 a bulleted, chronological presentation would better suit the information.

• 1959: Vast reserves discovered in Songhua Jiang-Liao basin in northeast China.
• 1960: Daqing oil field in Heilongjiang Province becomes operational.
• 1963: By this Time Daqing oil field producing nearly 2.3 million tons of oil.
• 1965: As Daqing production wanes, oil fields in Shengli, Shandong, Dagang, and Tianjin yield enough oil to nearly eliminate the need of importing crude oil.
• 1973: As production rates increase, China explores exportation possibilities—exporting of crude oil to Japan begins. Offshore drilling exploration begins as well.
• 1974: Exports increase to 6.6 million tons.
• 1978: Exports increase to 13.5 million tons.
• 1985: Exports increase to 20 million tons.
• 1993: Internal demand for oil exceeds its domestic production—exports no longer possible.

As demand exceeds its production, exporting of oil to its former largest importer, Japan, became impossible. Since its first days as a modern day importer (as opposed to its oil importing days before the 1950s) in the 1990s it has grown to be the second-largest oil-consuming nation, next to only the United States. Much of China's oil imports derived largely from Southeast Asia, but its growing demand has forced it to import oil from all over the globe.