September 24, 2010
Russia Says ESPO Price Stays
Russia's Deputy PM Igor Sechin denies rumours that the China National Petroleum Corp. was asking for a lower price for deliveries of crude oil from the Eastern-Siberia Pacific Ocean or ESPO pipeline. The reasoning was that since the spur into China was only 67 kilometers from the terminus why pay the ESPO price set at Kozmino far away on Russia's Pacific coast? Sechin said the official Russian-Chinese deal begins 2011 but until that time Russia would deliver 15 million tons annually at the regualar ESPO price.
With the ESPO and new Turkmenistan via Uzbekistan pipelines already open and the Myanmar(Burma) to Kunming and eventually Chongqing underway as well as crude lines potentially running through Pakistan, China is securing oil and gas deliveries free of the Straits of Malacca and more importantly the prying eyes of the US Navy off China's long and vulnerable coastline....
Labels: energy security, oil, pipeline, russia
September 10, 2010
China to Add 3 Million Barrels/Day Oil Refining Capacity
China National Petroleum Corp., the parent of PetroChina (NYSE:PTR) aims to complete a 200,000 barrels per day capacity oil refinery in Kunming by 2013. The refinery will process crude delivered by the Burma (Myanmar) to Chongqing pipeline currently under construction. When complete it will give 400,000 barrels per day to feed the growing cities of Yunnan Province and in particular independent megalopolis Chongqing. A gas pipeline is also under construction through Burma to Yunnan with terminus in Guangxi Zhuang Autonomous Region that will deliver 12 billion cubic meters of gas. Completion dates for the pipelines are not known at this time but all told China plans to finish refining capacity for an additional 3 million barrels per day in the next 5 years....
Labels: asian energy security grid, energy security, gas, oil, peak oil
April 12, 2010
China Wants Canada's Oil Sands
Reuters reports that Chinese oil major Sinopec will buy ConocoPhillips's stake in Syncrude Canada, the world's largest oil sands project located in Manitoba. The deal is worth just under $5 billion (US dollars) and would give Sinopec nearly 10% of the project that currently produces 350,000 barrels per day. Sinopec already owns a 10% stake in French major Total's Canadian oil sands venture Northern Lights....
Labels: energy security, foreign investment, oil, peak oil
April 09, 2010
China Could Become Oil Exporter Again
Long before the Panic of '08 Chinese oil majors planned major expansion of China's oil refining capacity. There are at least 10 major oil refineries or new capacity underway throughout China. According to 2009 data there are around 177 oil refineries of which 78 major refineries are owned by the Chinese oil majors and foreign joint ventures. By contrast the USA has around 150 oil refineries and no new construction for almost 30 years! The new refineries may add 3.7 million barrels per day of capacity by 2013.
In January China National Offshore Oil Corp. (NYSE:CEO) obtained license to export refined oil products. Just a year ago the company opened a new refinery at Huizhou, Guangdong, that is being upgraded to refine up to 22 million tons of oil per year.
If Beijing's big push for alternative energy is successful will all the new refined oil production be needed in China? Or could it end up exported onto Asian or international markets?
In January China National Offshore Oil Corp. (NYSE:CEO) obtained license to export refined oil products. Just a year ago the company opened a new refinery at Huizhou, Guangdong, that is being upgraded to refine up to 22 million tons of oil per year.
If Beijing's big push for alternative energy is successful will all the new refined oil production be needed in China? Or could it end up exported onto Asian or international markets?
Labels: alternative energy, exports, oil, peak oil
March 10, 2010
China Moves the World
It is an interesting irony that the same mainstream media that criticizes Chinese government data as untrustworthy claims that same data is capable of moving commodities, currency, and stock prices the world over. Consider today's headlines. Chinese numbers on exports and inflation are responsible we read for stock markets going up in the USA, Canada, and Brazil; affected the Mexican Peso, the (US) Dollar, and the Yen; and impacted gold and oil markets!....
Labels: exports, forex, gold, inflation, oil
March 08, 2010
China Reaches Peak Oil with Call for Bigger Strategic Reserves
Chinese oil production has essentially peaked and the country's strategic reserve is insufficient according to National People's Congress delegate Chen Geng. Geng is a former executive of state-owned China National Petroleum Corp. China is one of the top oil producers in the world at just under 4 million barrels per day. Data of the International Energy Agency shows production increasing around 3% a year over the medium term but long term forecasts show the share of imported oil increasing much faster. Chinese press reporting from the Congress session say there are calls to greatly increase the strategic oil reserves currently targeted at 170 million barrels. By contrast the USA has almost 700 million barrels stored in salt caverns around the country....
Labels: energy security, oil, peak oil, strategic
March 02, 2010
Iraq Oil Minister Says China Oil Contract Coming
Iraq's government will soon approve a contract with China National Offshore Oil Corporation (CNOOC) (NYSE:CEO) to develop the Maysan oil field in southern Iraq according to Oil Minister Hussain al-Shahristani. An estimated 2.5 billion barrels of oil await under the sands at Maysan....
Labels: energy security, foreign investment, foreign relations, oil, peak oil
China Bid for Azerbaijan Oil
Late last week the head of investment at the State Oil Company of Azerbaijan (SOCAR) Vagif Aliyev revealed that Devon Energy of Oklahoma was to sell its 5.6% stake in the big Azeri-Chirag-Gunashli offshore oilfield. The Azeri-Chirag-Gunashli field is controlled by a consortium of oil majors led by British Petroleum. Vagif Aliyev said negotiations were underway between Devon and Chinese oil companies - CNCP, CNOOC, and Sinopec have all been named as interested parties - and the other consortium members. If the consortium agrees not to buy Devon's share they could be joined by the Chinese.
The field lies offshore in the Caspian Sea in waters claimed as national by Azerbaijan. It is estimated to have 5.4 billion barrels of recoverable oil. Oil production is exported by the Baku-Tbilisi-Ceyhan (BTC) pipeline for delivery onto tankers plying the Mediterranean Sea. Over the weekend SOCAR said that Kazakhstan had stopped exporting oil through the BTC pipeline.
China was quick to recognize Azerbaijan as an independent nation in 1992. Chinese companies have been at work onshore since at least 2004. Devon Energy may be a takeover target according to some analysts. Rumours are Devon wants to focus on developing its domestic assets....
Labels: energy security, foreign investment, oil, peak oil
February 18, 2010
China Buys ESPO Crude
Unipec -- China's largest oil trader and a wholly-owned subsidiary of Chinese oil major Sinopec -- bought a 730,000 barrel cargo of ESPO (East Siberian Pacific Ocean) crude oil held in storage at a terminus of the new ESPO pipeline (see previous reports here). The move is viewed by analysts as a sign that China is pleased with the oil's quality. First shipments were made to refiners in (South) Korea and Japan. It is anticipated that ESPO could become an Asia-centered pricing benchmark similar to West Texas Intermediate or Brent Blend.....
Labels: foreign trade, oil, peak oil, pipeline, russia
February 11, 2010
Major Gas Find in South China Sea
Husky Energy of Canada confirmed discovery of 4-6 trillion cubic feet of natural gas in an offshore block near Hong Kong. The block is jointly developed by China National Offshore Oil Corp. (CNOOC) (NYSE:CEO) in a production sharing agreement but Husky may spin off the operations into an independent Chinese company listed on the Hong Kong exchange. Production could reach 90 million cubic feet per day and begin as soon as 2013.
CNOOC is also still in talks with French oil major Total to develop oil fields in Lake Albert, Uganda....
Labels: energy security, gas, hong kong, oil, peak oil
February 08, 2010
China Overseas Oil Production to Reach 1.2 Million Barrels Per Day
The overseas crude oil production of China's oil majors is expected to almost double by 2020 to 2 million barrels/day according to data from the energy consulting group Facts Global Energy. A new report on Chinese oil & gas investment shows Chinese investments around the world accounting for 25% of China's crude oil imports although their percentage of China's total oil consumption - 12.5% - is still relatively low. China National Petroleum Corp. and listed subsidiary PetroChina (NYSE:PTR) have several major new investments planned this year particularly in Iran and Iraq. Other Chinese oil majors such as CNOOC and Sinopec will pursue international oil deals as well as smaller firms such as Yanchang Petroleum owned by the government of Shaanxi Province.....
Labels: energy security, foreign trade, imports, oil, peak oil
December 30, 2009
PetroChina in Caribbean Oil Tank Farm Deal
Saudi Aramco will end its lease of 5 million barrels of oil storage capacity at the big Statia Terminals on the Caribbean island Saint Eustatius and word is Chinese oil major PetroChina will take over the lease. Neither PetroChina nor NuStar Energy the Texas based owner of the facility is saying much publicly.
Why PetroChina needs the storage capacity is a matter of speculation at this time but possibly reflects PetroChina's deal last week with Venezuela's national oil company (PDVSA) to buy 500,000 barrels of oil per day. Interestingly St. Eustatius is neighbor to St. Kitts and Nevis which maintains fruitful ties with Taiwan....
Labels: energy security, foreign relations, foreign trade, oil
December 28, 2009
Siberian Oil Flows to China from New Kozmino Terminal
Russian Prime Minister Vladimir Putin helped opened the new Kozmino oil terminal on the icy coastline of Russia's Far East today. The first shipment of crude from new fields in eastern Siberia will sail to a customer in Hong Kong. While the Kozmino terminal and part of the giant East Siberia Pacific Ocean (ESPO) pipeline is complete the final pipeline to the coast and deep inside China are still under construction. When completed (date unknown at this time) almost a fifth of the approximately 80 million tons per year of crude the pipelines carry will flow directly to China. Russian producers claim the crude - called ESPO blend for now - is comparable to middle east oil grades and its price is tentatively based on Dubai blend....
Labels: foreign investment, foreign trade, oil, peak oil, pipeline, russia
November 24, 2009
Beijing in Renewed Push for Latin America Resources
Jia Qinglin, head of Beijing's Chinese People's Political Consultative Conference, is on a deal-making tour of South American nations. Traveling with a large trade delegation, Jia opened a China-Ecuador business meeting in Ecuador's capital, Quito. OPEC member Ecuador announced a Chinese investment of over $1 billion (US dollars) to form a China-Ecuador oil exploration company to exploit the Oglan block in the Amazon rain forest.
In Peru, President Garcia encouraged Jia to bring Chinese investment to Peru's automobile processing and port development. Chinese mining firms are said to be interested in increasing investment into Peruvian mining.
Next stop Brazil where Jia and his delegation will meet with President Lula da Silva. China is now Brazil's largest trade partner surpassing the United States. But the USA remains the biggest investor in Latin America despite all the promises of Chinese investment. China also lags the EU in terms of investment in the region.....
Labels: foreign relations, foreign trade, oil, peak oil
November 03, 2009
While USA Talks, China Builds in Burma (Myanmar)
China's national oil company, the China National Petroleum Corporation (CNPC) (Hong Kong: 0135), is building a pipeline from the coast of Burma or Myanmar through the heart of the country into Yunnan Province at the border city Ruili. The time frame for the project is unknown but CNPC says it will carry up to 84 million barrels of oil per year.
Meanwhile the US State Department has sent envoy Kurt Campbell to talk shop with the military junta that controls Burma as well as celebrity dissident Suu Kyi....
Meanwhile the US State Department has sent envoy Kurt Campbell to talk shop with the military junta that controls Burma as well as celebrity dissident Suu Kyi....
Labels: asian energy security grid, energy security, oil, peak oil, pipeline
October 20, 2009
China Could Drill for Oil in the Gulf of Mexico
Norway's national oil major StatOilHydro is in talks with China National Offshore Oil Corp (CNOOC) on the sale of leases offshore the southern USA between Houston and New Orleans. Both companies are listed on the NYSE. The blocks are in deep water and include areas near where a consortium lead by BP recently found large oil deposits deep in the earth's mantle. No other details at this time....
Labels: energy security, foreign relations, free trade, oil, peak oil
October 13, 2009
China and Guinea to form Massive Mining Company
A Chinese investment house, possibly China International Fund, will invest up to $9 billion (US dollars) to create a joint national mining conglomerate with the government of Guinea on the coast of West Africa. Guinea is already a leading source of crude oil for China and is believed to have significant deposits of bauxite, gold, and diamonds. The USA and Russia are also active in Guinea but the creation of the joint mining company intended to control all mining in the country will give China a distinct advantage. In addition China will invest billions in developing Guinea's infrastructure....
Labels: africa, foreign investment, foreign relations, gold, oil
September 30, 2009
China Wants Nigeria Offshore Oil
China National Offshore Oil Corp. (CNOOC) (NYSE: CEO) announced it is discussing major acquisitions in Nigeria valued up to $30 billion (US dollars). This will mean directly taking on western oil and gas majors Shell, Chevron, Total, and ExxonMobile which currently dominate oil production in Nigeria. Nigerian petroleum minister Odein Ajumogobia says not so fast however but admits his government is considering an offer. Ajumogobia may be getting pressure from Washington as Nigeria is the perrenial number 5 supplier of crude oil to the USA. Many analysts believe that CNOOC may pursue new offshore blocks. Chinese firms are leading deepwater explorations around the world....
Labels: foreign investment, foreign relations, oil, peak oil
September 28, 2009
USA-China Oil & Gas Industry Forum
The 9th US-China Oil and Gas Industry Forum is underway in Qingdao, Shandong Province. Obama's Energy and Commerce secretaries are not present and the work of the forum is not well publicized. On the sidelines it was revealed that the huge Chuandongbei gas project in Sichuan Province, jointly developed by CNPC (parent of PetroChina - NYSE: PTR) and Chevron, will begin gas production next year. Ultimately the gas works will produce 3 billion cubic meters per year for 15 years....
Labels: energy security, foreign investment, gas, oil, peak oil
September 24, 2009
Pipelineistan Oil and Gas Flows to China
On the sidelines of the UN General Assembly the President of Turkmenistan Kurbanguly Berdymukhamedov invited Chinese President Hu to the inauguration in December of the Turkmenistan-China gas pipeline. China will replace Russia as the biggest buyer of Turkmen gas estimated at 40 billion cubic meters per year. Meanwhile the Kazakh-China crude oil pipeline is flowing at near 200,000 barrels per day most of the supply going to an expanded oil refinery in Dushanzi, Xinjiang, between the border and the capital Urumqi. The Kazakh oil pipeline is slated to increase to 400,000 barrels/day although that amount is not contracted yet....
Labels: asian energy security grid, energy security, foreign investment, foreign relations, gas, oil, peak oil
Subscribe to Posts [Atom]
