• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 24 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 1 hour Demand for Diesel vs. Oil
  • 10 hours Which type of Hegemony will China follow
  • 1 day Governments that wasted massive windfalls
  • 2 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 1 day Here is Why People Lose Money Trading Natural Gas
  • 1 day We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 17 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day US Shale: Technology
  • 1 day Let’s take a Historical walk around the Rig
  • 3 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
Alt Text

Tesla: Sell On The Trumpets

Tesla’s share price has skyrocketed…

Alt Text

Demand Fears Are Driving Today’s Oil Markets

The outbreak and escalation of…

Editorial Dept

Editorial Dept

More Info

Premium Content

Is China Facing A Natural Gas Crisis?

1. China’s gas needs growing

- China’s consumption of natural gas is rising faster than its production, with the gap met by rising volumes of imports. In 2018, imports accounted for 45 percent of China’s gas supply, up from 10 percent in 2010, according to the EIA.

- China has tried to scale up shale gas production, with mixed success. Gas output is on the rise, reaching 15 billion cubic feet per day (bcf/d) in 2018, but demand (and thus, imports), are growing faster.

- Recognizing the growing import dependence, China introduced new subsidies for gas production in June 2019, and the government also loosened restrictions on foreign companies operating independently.

- China accounts for the largest source of LNG demand growth going forward, so new LNG export terminals around the world are constructed with an eye on China. But if China succeeds in ramping up domestic supply, that would cut into LNG import demand in the years ahead.

2. Petrochemical slump

- Petrochemicals have been lauded as the next source of growth for the oil industry. Soaring plastic consumption is an environmental disaster, but oil companies, particularly the majors, see plastics as a growth sector and a hedge against peak oil demand for transportation.

- In the short run, the market for polyethylene, a building block of plastic, has fallen sharply. Prices are down 22 percent in the past year.

- The U.S.-China trade war has put…




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play