【正文】 To raise efficiency through market petition, it’s sure to lose the efficiency brought with the economy of scale and scope. ? In the initial stage, the difficulty lies in how to guarantee enough investment to construct largescale infrastructure。 Energy Law, Tsinghua Law School Basic Considerations ? Law on petroleum and natural gas is a kind of special law on special objects. We have to take their specific characteristics into consideration, as well as the distinction and connection with mining law. ? It’s necessary to analyze the multiple objectives of petroleum and natural gas law and to discuss how to achieve them with specific institutional arrangements. （ The multiplicity of objectives decides the diversity and plexity of legal means. ） Relations between Petroleum Law and Natural Gas Law ? Traditional Concepts amp。A Study Of PetroleumNatural Gas Legislation WANG MingYuan, XIAO Jing amp。 ZHANG ZhiJun Center for Environmental, Natural Resources amp。 Modus Operandi: ? The two used to be integrated. It’s generally held that the term of “petroleum” in Petroleum Law includes both petroleum and natural gas. ? Reason: ? There are many similarities between petroleum and natural gas. And they e from the same source (oilgas field). The only difference lies in the state: One is liquid, the other is gaseous. As a result, they also share many similarities in legislation. Relations between Petroleum Law and Natural Gas Law ? However, the tendency is to prescribe natural gas independent of petroleum and to make up separate Natural Gas Law. ? Reason: ? 1. The production of natural gas has greatly increased. As an energy resource, natural gas has bee more and more important. It is not a supplementary to petroleum any more. ? 2. The difference between the natural gas and petroleum industry has been more and more apparent. ? 3. Foreign experience in legislation has also demonstrated that it is necessary to have independent natural gas law. ? the US: Natural Gas Act, made in 1938 the UK: Petroleum and Natural Gas Law, made in 1982 Natural Gas Act, made in 1986 Relations between Petroleum Law and Natural Gas Law Main Contents: ? First, introduction to petroleum law, which includes objectives and systems that petroleum law and natural gas law have in mon ? Second, analysis of some special problems of natural gas law based on the specific characteristics of natural gas ? Third, a concise analysis of existing petroleum and natural gas legal system framework, current problems and several important problems to be stressed in legislation Petroleum Law － the Energy Cycle of Petroleum ? Energy Cycle： Exploration Exploitation Refinery Transport Consumption （ mining） （ deepprocessing）（ service industry）（ marketing） ? At every link of petroleum industry, both the inherent characteristics of petroleum resource and distinguishing features of different processes have deep impact on relevant legal system. Petroleum Law － the Energy Cycle of Petroleum: Production Process ?The production process of petroleum is divided into three periods: exploration, drilling and exploitation. ?Exploration is just a “guess” at the possible existence of certain energy resource. ?Only drilling can prove whether there exists an oil field. Petroleum Law － the Energy Cycle of Petroleum: Production Process ? Impact of the limited survey techniques on law ? Geologists can only infer whether there is an oil field by terrain analysis. All these inferences are testified by drilling. However, drilling is rather expensive. ? Sure enough, developers want to control investing direction and occasion and to disperse the risks, all of which need legal support. Petroleum Law － the Energy Cycle of Petroleum: Production Process ? Special embedding form of petroleum: ? Neither “reservoir” nor “pool” is an exact word. ? Petroleum usually exists in the holes of special ores and cannot exist independently. ? Natural gas either exists in gaseous state or dissolved in petroleum. What’s more , there is salt water in it. As a result, it lies in the bottom because of its specific gravity. ? Petroleum and natural gas are so closely connected that it is difficult to distinguish oil field and gas field. And it’s also difficult to prescribe them in the production process. Petroleum Law － the Energy Cycle of Petroleum: Production Process ? The understanding of physical features of petroleum has affected relevant legal system. ? In the history of mon law, judges judged petroleum on the analogy of wildlife at first. This led to two legal results: ? 1. Ownership system ?(Petroleum is separated from solid mineral resources. The rule of “from the sky to the earth’s core” was nullified. ) ? 2. Application of the rule of “capture” in the exploitation of petroleum Petroleum Law － the Energy Cycle of Petroleum: Production Process ? With the improvement upon knowledge, people e to know that petroleum resource has neither the “fixity” that solid mineral resources have nor the “free mobility” that wildlife has. It is affected by mechanism of oilfield. ? Mechanism of oilfield: ? Oil well can “dry out” oilfield. ? What one obligee does on the oilfield has a great impact on other obligees’ interests and the development efficiency of the whole oilfield. Accordingly, legislation on exploitation must correspond to this geological rule. ? US: the practice of oil well certificate and oil well demarcation Petroleum Law － the Energy Cycle of Petroleum: Production Process ? The limitedness of petroleum resource also has an impact on exploitation legislation. requirement of energy conservatio