The Impact Of Oil Price Decline On China's Alternative Fuels For Vehicles

The crude oil,is a kind of hydrocarbon composition of a variety of dark brown or dark green viscous liquid or semi solid combustible materials.After the outbreak of the "oil crisis" in 1973,OPEC has its crude oil resources sovereignty and the organization also began to implement the policy of independent oil.With the pass of time,the development of science and technology,the exploitation of crude oil,more and more frequently,these non renewable resources make people aware of that one day will be exhausted,so the scientists put forward the concept of alternative energy.Alternative energy refers to the technically feasible and economically reasonable,environmentally and socially acceptable energy,to ensure the sustainable development of energy system,in supply of conventional fossil fuels.These include renewable energy,such as wind energy,solar energy,biomass energy,hydropower,ocean energy,such as heat energy,nuclear energy,hydrogen energy.At present,people's dependence on oil has reduce,natural gas,bio diesel,electric vehicles,ethanol and other energy is gradually replacing oil,the energy is worthy of development and utilization,and price,is lower then oil,this is their rapid development in recent years from the original.Since the beginning of the second half of 2014,mainly due to the excess supply and world economic weakness,the demand for crude oil is less than expected,resulting in oil prices all the way down,and if OPEC doesn't cut in,the situation is likely to continue.Low oil prices have a great impact on alternative energy sources,especially the high cost of the coal chemical industry is expected in 2017.Long time of low oil prices will inevitably impact natural gas,electric vehicles,bio diesel,the impact of ethanol and other alternative energy sources.In this paper,we mainly study the oil at a low price on China's alternative fuel has what effect's,will alternative fuels in this environment also can maintain output,what kind of policy will change,and if the international crude oil prices remain low,how will alternative fuels develop in the future.This paper uses the elastic coefficient model,regression analysis model.The conclusion of this paper is low oil prices,bio diesel and fuel ethanol will be affected greatly.Direct coal system oil breakeven point is 66-70 dollars per barrel,indirect oil breakeven point system for 55-66 dollars per barrel.Natural gas has competitive ability when oil and gas ratio is less than 75%.