China is a coal based economy similar to the UK with reserves forecast
to last well into the future. Her modernisation programme to provide
an additional 150 million tonnes per annum by 1990 lays much emphasis
on the development of new mines and the reconstitution of existing mines.
Britain's experience in coal mining goes back hundreds of years and we
have much to offer in both deep mining capabilities and open cast mining.
British Coal has already undertaken consultancy work on the modernisation
of mines in Tangshan and British Mining Consultants have been involved in
Jiming II. From these and other initiatives it is hoped greater co-
operation between the coal authorities in China and the UK coal mining
industry can develop.
Ensuring continuity of oil supply, partly to meet increased domestic
consumption and also as a valuable earner of foreign exchange, is vitally
important to China's reformation programme. Unfortunately the hydro-
carbon potential of China's Continental Shelf has so far failed to meet
expectations and understandably there is much disappointment in the oil
industry. However, it was some time after exploration started in the
North Sea that the first oil was discovered and since the acreage offshore
China is very much greater than that of the North Sea, it is too early to
become despondent on the eventual outcome on China's Continental Shelf.
British industry occupies a leading position in offshore oil and gas tech-
nology and the experience of working in the demanding conditions of the
North Sea makes it well suited to working offshore China. Of particular
relevance in the present climate of depressed oil prices, is the technology pioneered in the UK for locating and producing oil from small oilfields.
But just as important is a professional approach to reservoir evaluation,
petroleum economics and the high quality manufacture of a wide range of
equipment able to meet foreign oil company standards. Whilst all this
can be provided from the UK, it would be wrong to suppose that Britain's
hydrocarbon expertise relates solely to offshore work. In fact, many of
the services and equipment used on the UK Continental Shelf have equal
3.