Oil production in China last year likely reached a peak of about 4.3 million barrels per day, according to the latest data and surveys of industry executives.
As suggested by The Wall Street Journal, the oil industry of China is probably entering a new phase — long-term decline in domestic production. The publication warns that the decline in production in the country will have a significant impact on the rest of the world, including the possibility of increasing oil prices over time, as China will increase imports to meet growing domestic demand, reports “Finmarket”.
“There comes the turning point we’ve been looking for for many years, — said the Vice-President, Asia consulting firm in the energy sector FGE Kang Woo. — China is entering a period of long term stagnation and decline of production.”
Old deposits in China are no longer able to increase production, while the exploration of new sufficiently covers the growing demand. The fall in world oil prices has pushed the state oil company to the closure of marginally profitable wells.
All this puts pressure on China’s oil giants — PetroChina Co., China Petroleum & Chemical Corp. and CNOOC Ltd., which, as never before, are competing with international companies for oil sources and clients.
However, due to insufficient domestic production, China will be forced to increase oil imports. This will mark a fundamental shift for a country that only recently declared energy independence a major item of national security.
