- What you need to know...
- China’s large population, and its growing middle class, are major drivers for energy consumption in the country.
- China is taking measures to reduce its dependency on coal, which accounts for over 60% of total primary energy consumption, to address air pollution and diversify its energy sources.
- Oil and Gas companies in China have explored the shale formations in the Sichuan Basin with a very low success rate.
- China has increased its collaboration with Russia over the past few years to meet its domestic energy requirements. This growing collaboration is proving to be equally critical for Russia as access to financing and technology for Russian oil and gas companies have been limited following the imposition of sanctions by the US and European Union.
- The global crude oil supply scenario remains buoyant, with new discoveries in the last few years adding to existing oil reserves.
What are the major growth drivers for oil and gas companies?
The sustained growth in consumption of petroleum, natural gas, and petrochemicals products in China is a major growth driver for oil and gas companies worldwide.
They can benefit from this opportunity by investing in the Chinese oil and gas industry. However, the oil and gas sector in China is largely dominated by the country’s national oil companies (NOCs).