China establishes State Energy Administration

After the SARS issue and the problems of Chinese oil companies in Kazakhstan it went almost unnoticed, that the new Chinese government established a State Energy Administration (SEA).
The agency is expected to have a big influence over the three national Chinese oil companies as it will be responsible for licensing and approving new projects.

SEA will have also have an effect on foreign oil and gas companies operating in China, particularly with regards to regulations and policies.
However, it first has to be observed how the new agency fits into the Chinese bureaucracy apparatus.