• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 1 hour Would bashing China solve all the problems of the United States
  • 46 mins Model 3 cheaper to buy than BMW 3 series.
  • 2 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 55 mins Pompeo's Hong Kong
  • 12 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 1 day China to Impose Dictatorship on Hong Kong
  • 2 hours Thugs in Trumpistan
  • 6 hours China’s Oil Thirst Draws an Armada of Tankers
  • 46 mins Income report showing potential future spending and economic growth
  • 7 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 2 days Iran's first oil tanker has arrived near Venezuela
  • 2 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 2 days Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 3 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 1 day 60 mph electric mopeds
Russia To Expand Influence In Iraq’s Oil Heartland

Russia To Expand Influence In Iraq’s Oil Heartland

Russia has once again signalled…

The Shale Bust Has Arrived

The Shale Bust Has Arrived

As shale drilling comes to…

China's Oil Import Dependency Deepens

China satisfied 64.4 percent of its crude oil demand with imports last year because of high production costs at home and favorable international prices resulting from the global glut. This was a 3.8-percent increase on 2015, Chinese media reported, adding that this level of dependency will increase further this year.

Last year, China produced crude oil at an average cost of US$45-50 a barrel, while international prices were lower than that for much of the year, allowing the second-largest consumer of the fuel in the world to satisfy its domestic demand with higher imports.

In fact, China turned into a sort of battleground for the biggest exporters, including Russia and Saudi Arabia, as they fought for market share, challenged by the re-entry of Iran on international oil markets.

According to analyst Li Li from the Independent Chemical Information Service, by 2020, China’s reliance on imported oil could climb to 70 percent of demand on the back of local energy companies cutting production and spending because of the 2014 oil price crash. What’s more, some of China’s largest fields are mature, which means production costs are more likely to rise than fall.

Already output at the two largest ones, Daqing and Shengli has been substantially curbed, and there are no new discoveries made in the last few years to replace them. However, now that oil prices have recovered somewhat, production at home might inch up this year, Li said.

A projection of China’s crude oil demand for this year was actually one of the two drivers behind the latest jump in oil prices, which saw Brent crude pass the US$55-a-barrel mark to reach US$56.05 in European trading earlier today.

The projection came from CNPC, who said that 2017 will see Chinese oil demand hit a record 12 million barrels daily. This, the state-owned energy giant said, would mean that net imports would rise by 5.3 percent to 396 million tons in 2017.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News