Abstract:Energy technology progress is considered to be a main way of slowing the growth in oil consumption. From the perspective of technological progress and structural adjustment, urbanization, etc, this paper explores the influencing mechanism of China"s oil demand. Results show that: (1) Technology progress plays a smaller role in the inhibition of the oil growth, its fuel-efficient space to ascend ;(2) Economic structure and urbanization are the main reasons for pulling oil demand; (3) There is a one-way causal relationship between GDP, urbanization and oil consumption, for the purpose of energy saving policy will not harm economic growth and urbanization. Combining with the scenario analysis from 2015 to 2025, to assess the oil-saving and emissions reduction potential, the paper puts forward relevant policy suggestions as future references.