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China Increasing Its 2020 Crude Oil and Natural Gas Production Goals

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China Increasing Its 2020 Crude Oil and Natural Gas Production Goals

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China’s National Energy Commission announced the country’s production goals of oil and natural gas for 2020.

Crude oil sits at 193 million tons (or 3.8 million bpd) and 181 billion cubic meters of natural gas, compared with the actual production of 191 million tons of oil and 173.6 billion cubic meters of natural gas.

The agency intends to develop new energy, including renewable sources, increase electric power without using fossil fuels to 900 GW, and reduce the share of coal in the country’s energy balance to 57.5%.

China is committed to ensuring its energy security.

There have never been and have never been market-motivated rules in the energy sector. Hydrocarbons are the fuel of the global economy. And the world is arranged so that the engine of the global economy is in one place, and the fuel for it in another.

Meanwhile, Chinese imports of oil and natural gas from Russia are rising.

China’s crude oil throughput in May rose 8.2% year-on-year (YoY) following independent refiners increasing production in response to the growing fuel demand as coronavirus lockdown restrictions ease, according to Reuters.

For the first five months of the year, throughput has averaged 12.55 mmbbl/d, a 1% decrease from 2019’s levels due to large processing cuts in February and March this year.

China’s March crude oil imports from top supplier Saudi Arabia fell 1.6% from a year earlier, while purchases from No.2 supplier Russia rose 31%.

China’s March crude oil imports rose 4.5% year on year to 9.68 million barrels per day (bpd) as refiners stocked up on cheaper cargoes despite falling domestic fuel demand and cuts in refining rates due to the impact the COVID-19 pandemic.

Recent indicators for China, which is also the largest importer of oil and gas in the world, were encouraging and indicate the energy market is shaking off the virus shock. Crude oil imports climbed by 1.7% from March, to 40.43 million t, or the equivalent of 9.84 million bpd, according to data released by Chinese customs on May 7th.

Natural gas imports, comprising LNG and pipeline supplies, stood at 7.67 million t in April, up on both March and a year earlier. The increase was driven by higher LNG imports, which climbed by 12.3% year-on-year, to 5.1 million t.

Higher consumption has supported rising imports. Chinese oil demand plunged by 20% in March after the country entered lockdown in February.

But demand is set to recover to around 13mn bl/d in the second quarter of this year, which would be 16.3% higher than in the preceding quarter, according to Wood Mackenzie. The consultancy forecasts China’s oil demand is to rise by a modest 2.3% year-on-year for the first half of 2020, to 13.6 million bpd.

April’s indicators suggest China’s gas demand emerged largely unscathed from the economic standstill in the first quarter, but a lack of storage data means it is unclear how much of the gas—produced domestically or imported—has been stored instead of consumed.

The increased purchases from Russia come down to two reasons:

  1. Diversifying purchases, and reducing reliance on Saudi Arabia, which proved a risky partner by beginning the crude oil price war in March 2020;
  2. Strengthening the alliance between Moscow and Beijing. Russia is currently struggling economically, and in this way, Beijing is assisting it, all the while guaranteeing support in some future economic and otherwise endeavors.

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Zionism = EVIL

China has very wisely increased its strategic energy reserves during low oil prices and Americunt collapse. China has the largest FOREX reserves and is cashed up. Current low prices mean China is likely to keep on topping up its oil reserves and partnerships with major players like Iran.

ΠΑΡΜΕΝΙΩΝ

Very wise move because China is energy dependent on other countries,.It is a country without oil, without energy and other resources, mining. That is why he desperately wants to create the Silk Road.. The Silk Road is China’s main tool in pursuing a high-level strategy in Europe. A look at the map will show that it starts in China and ends in Europe! What does this remind us of? The map of the conquests of Alexander the Great, but from the other side.

https://lh4.googleusercontent.com/proxy/e2sGY_kUyXVNdJgisEVS60U5ZuHKpN_HNCGtv4GF-dFxtAzcpaMnWSe38yV_YBbyB6dUd0TBa3OPqe8nVncO_jNaHHGiYF8VBX51pm-Bpg7qnkPA58ddbw=w1200-h630-p-k-no-nu

Zionism = EVIL

Indeed, the Chinese are very calm strategic thinkers and they knew that the dumbass upstart warmongering Americunts will crash and burn, so they are slowly inflict the old Confucian death of thousand cuts. BTW, you are a pretty intelligent guy with a good grasp of history.

ΠΑΡΜΕΝΙΩΝ

” BTW, you are a pretty intelligent guy with a good grasp of history.”

the same as you my friend…you have a lot of knowledge and you know many, many different things

Zionism = EVIL

Hard lessons of life amigo, age and experience really do make one wiser if you keep your head evenly balanced :) Cheers.

Jens Holm

I dont see that. The silk road has existed for many, many years and also is well descriebed.

The rewla change is China will improve, whats already there. Good idea. Here and there its very crowded and too slow.

https://www.marinetraffic.com/en/ais/home/centerx:-12.0/centery:25.0/zoom:2

guest

fou à lier

Lazy Gamer

This just screams for the US to destabilize ASEAN and to sabotage China’s oil platforms in the sea. lol

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