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Chinese oil consumption and investment in offshore production
On February 24, 2012
Growing consumption in the developing world, and especially China, has been the main driver in the price of oil for the past years. In 2012 demand from non-OECD countries may overtake that of the developed OECD-countries according to the International Energy Industry.
That China is a big consumer of oil is well known. But what often is overlooked is that China is also the world’s 4th largest producer of oil. However reserves are low – only at 15th place in the world – and onshore oil reserves in the north-east are quickly drying up.
To counter this there is a big focus on developing off-shore and deep sea oil reserves. During the 12th 5-year plan (2011-2015) China is planning to invest US40bn in developing offshore production, and more than doubling production in the Bohai Bay and the South China Sea. The large state-owned oil companies are also making overseas investment in offshore and deepwater operations