Dec. 31 (Bloomberg) -- China National Petroleum Corp., the country's biggest oil company, boosted crude-oil output to a record in 2008 as the nation stepped up production to meet increased demand and build fuel reserves.

This is the seventh straight year in which the company's crude output has grown ``steadily,'' China National said in a statement on its Web site today without giving details. The company's crude production rose 2.2 percent to 137.6 million metric tons in 2007. Natural-gas output expanded ``rapidly'' this year, the statement said.

China, the world's second-largest oil consumer, boosted energy production to meet demand after the worst snowstorms in 50 years in January and a 7.9-magnitude earthquake in May. The country, which increased output to ensure ample fuel supplies during the Beijing Olympics, is now building stockpiles as oil consumption eases because of the economic slowdown.

``China National will post another steady increase in oil production next year despite lower demand growth as the economy slows,'' Yin Xiaodong, an oil analyst with Citic Securities Co., said by telephone from Beijing today.

The Chinese economy expanded at the slowest pace in five years in the third quarter as the global recession slashed exports and shut factories. Domestic oil demand growth may ease to 4.8 percent in 2009 from 5.5 percent this year, Yin said.

Changqing, Daqing Fields

Crude-oil production at Changqing field in northwestern China exceeded 10 million tons this year, according to a separate statement on China National's Web site. Daqing field, the nation's largest, maintained output at 40 million tons. The company's offshore crude output exceeded 2 million tons this year, also a record, China National said yesterday.

The country's crude production may increase by 1.2 percent to 189 million metric tons this year, China National, parent of PetroChina Co., said on Dec. 23.

China is also taking advantage of lower global prices to boost imports of oil and gas as stockpiles are being built. Crude prices in New York have slumped 73 percent from a record $147.27 a barrel in July on concerns the world economic slowdown may slash fuel consumption.

China National's spokesman Liu Weijiang didn't answer calls to his office and mobile telephone.

To contact the reporter on this story: Winnie Zhu in Shanghai at wzhu4@bloomberg.net; Wang Ying in Beijing at ywang30@bloomberg.net.

Last Updated: December 30, 2008 23:25 EST