Abstract: As energy security plays an increasingly important role in national security，it becomes an urgent requirement to make an “oil and natural gas law” which accords with China′s present situation and can meet the rapid economic development and guarantees energy security of China.This paper，based on the present situation of oil and natural gas production and the basic requirements for oil and gas legislation，conducts a thorough study on aspects where lawful regulation are needed in oil and gas industry in China.After an analysis about the existing problems in the framework of oil and gas laws and regulations，the authors suggest the principal contents of China′s “oil and natural gas law” and thus give this paper significance in scientific development of oil and gas industry.

Key words: oil and natural gas, legislation, trade monopoly, environmental resources, market mechanism, energy security