Market-oriented Energy Revolution in China and Impacts

China has been undergoing a new round of ambitious reform in its energy sectors after president Xi’s call for "energy revolution" in June 2014. This top-down strategy paves a way to market-oriented transition for Chinese energy govern system on both industrial level and corporation level. This paper analyzes the new trends of China’s energy policy and its impacts on crude oil market as well as on Chinese state-owned petroleum enterprises. This revolution will reshape the management system of Chinese energy industry to cope with rising energy demand, supply restraints, huge environmental costs and backward technologies. With the deepening reform of oil and gas pricing mechanism and the openingup of petroleum industry, Chinese domestic energy market will be upgraded towards a more rationalized and competitive system. Mixed ownerships will be introduced to stimulate the vitality, creativity and brand influence of state-owned petroleum corporations, pushing Chinese national oil majors to collaborate jointly with various foreign oil and gas companies and the emerging domestic private companies with great entrepreneurship.