This report reviews the situation changes of both domestic and global energy marketsfor the year 2016，focusing on some key issues such as world crude oil price，consumption structure，as well as domestic structure changes in domesticsupply and demand side. In 2017，China canpromote the energyrevolution bytaking advantage of low oil and gas prices，improve the structure of supply and accelerate the transition to cleaner energy mix and market-oriented reforms，and can diversify oil and natural gas import in order to improve the situation of energy security.