Abstract:The current situation of the oil production, oil consumption and net import of China is analyzed on base of annual data of 2000-2012 in China such as population, economy, energy and environment. By using system dynamics method, this paper establishes a forecasting model for supply/demand of oil to study the safety of oil and predicting the growing trend of this energy in the future years in China. And the forecasting model validity is verified. The research shows that, in China, oil consumption is growing rapidly and domestic production capacity is insufficient, and oil dependency is too high. Moreover, these factors are causing a grave threat to petroleum security. Finally, some policy suggestions in order to ensure supply/demand safety for oil are presented according to the result of forecast and scenario analysis.