Posts Tagged ‘Asia’

Chinese oil demand: is something missing?

For all the talk about slowing growth, China’s oil demand didn’t fare too dismally last year. It likely remained stable at around 3%, even as the government doggedly pursued reform and rebalancing in favor of accelerated GDP numbers.

Yet the fact remains that analyzing oil demand in China is often a stab in the dark based on scant data. Unlike many other major consumers that release actual consumption data, China’s statistics offer no such transparency.

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The site of the World Energy Congress won’t soon be forgotten, and that’s not necessarily good

Nestled among rolling green hills in southeastern Korea, the city of Daegu is said to have a population of 2.5 million people. But given the lack of decent hotel rooms, restaurants, bars or Big City buzz in general, many of the 7,000 delegates attending the 22nd Word Energy Congress there last week wouldn’t have been surprised to hear it was a town one-tenth that size.

The political and financial whys and wherefores of how cities come to host the triennial WEC make the Olympic city selection process look like a Norwegian election campaign. But suffice to say, Daegu is not an ideal venue for a huge, international conference and trade show.

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Figures on Venezuela’s oil, product exports to China are for the birds

One thing I learned during an eight-year stint in Latin America is that magical realism is not just a literary device popular among writers there.

Sometimes it is a worldview, such as when a government minister of a certain Latin American country assured a group of journalists that vastly increasing its oil production was just a few weeks away as all they had to do was “turn on” some non-producing wells. This was the same minister who gulped down brackish water from a lake to “prove” that an oil spill there had been cleaned up. He said it tasted just fine.

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Shell tipped to take stake in InterOil’s Papua New Guinea LNG project

Of the three oil and gas majors understood to be vying for a share of US-listed junior InterOil’s Gulf LNG project in Papua New Guinea, Shell is being tipped by some industry insiders as the bidder most likely to succeed.

The PNG government approved InterOil’s plans to develop the 3.8 million mt/year Gulf LNG project in November last year but has required that the company bring in a partner with a track record operating similar projects. At the same time the government said state-owned resources company Petromin would take a 50% stake in the onshore Elk and Antelope gas fields that will feed the LNG project.

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Qatar goes offshore to preserves global LNG dominance

Qatar’s LNG development policy has been a matter of considerable international consternation. Why invest tens of billions of dollars to become the world’s leading exporter of the fuel, and then jeopardize that dominant market position by indefinitely extending a moratorium on most upstream gas development?

Research and consulting company Wood Mackenzie thinks it has the answer to that conundrum.

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China’s oil demand rebounds in July

Chinese apparent oil demand rose in July, according to Platts’ analysis, rebounding from June’s decline, which was the first contraction in more than three years. The rise in July demand was driven by a 53% boost in net imports of oil compared to a month earlier. You can read about the decline, and the sharp turnaround from the growth rates of the past, here.

At the Wellhead: Bangladesh finally seeing some opportunities

Everywhere Bangladesh turns to develop its offshore resources, it seems to run into a border dispute. But some of those are receding, and the country is optimistic about its oil and gas prospects. Mriganka Jaipuriyar has an overview of the country’s outlook in this week’s Oilgram News column, At the Wellhead.

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Petrodollars: CNOOC’s Nexen deal another step in its oil diversification drive

The acquisition of Canada’s Nexen by CNOOC, announced last month, makes sense on many fronts.

It gives CNOOC a stake in the North Sea, which means it’s effective now “long” the Brent market, where China has major exposure; and it also gives it a greater stake in what happens with WTI, since Nexen’s Canadian crude sold into the US will be tied to that benchmark.

Robert Perkins writes in this week’s Oilgram News column, Petrodollars, on the reasons why the deal is a logical one for CNOOC.

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Chinese oil demand: Back to the level of last September

Chinese apparent old demand declined in June, according to Platts’ analysis, a long way from the high-flying double-digit, year-on-year growth levels of just a few years ago. You can read about the decline, and the sharp turnaround from the growth rates of the past, here.

July PX Asia contract price fails to settle, shows disconnect between traders, end-users

The Asian paraxylene contract price for July was left in limbo as PX producers and downstream purified terephthalic acid makers failed to reach an agreement. The ACP monthly negotiation is led by four PX producers — ExxonMobil, JX Nippon Oil and Energy, Idemitsu Kosan and S-Oil — and six PTA makers — BP, Capco, Mitsui Chemicals Corp., Mitsubishi Chemical Corp., Oriental Petrochemical (Taiwan) Corp. and Yisheng Petrochemicals. 

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