12/31/2023 0 Comments Chinese coins 1![]() ![]() From a peak of nearly 4.4 million barrels a day in 2014, domestic production fell to 3.8 million barrels in mid-2018. The recovery reflects the high priority Beijing places on energy security, having directed its state-owned companies to lift domestic spending in 2019, when the country launched the so-called “ Seven-Year Exploration and Production Increase Action Plans.” Those measures were a response to a sudden drop in Chinese oil output during the second half of the last decade that increased a sense of insecurity in Beijing. Pumping about 4.3 million barrels a day now, China is again the world’s fifth-largest oil producer, only behind the US, Saudi Arabia, Russia and Canada, and ahead of Iraq. From the low point in 2018 to the peak in 2023, China has added more than 600,000 barrels a day of extra production – more crude than some OPEC+ nations generate daily. On top of extra Chinese output, OPEC+ is already battling higher-than-expected oil production from several of its own members that are under Western sanctions: Russia, Iran and Venezuela. In doing so, the country is somewhat damping the need to buy crude overseas, complicating the efforts of Saudi Arabia and its OPEC+ allies to control the market. (Sinopec) and Cnooc Ltd., Beijing has been able to reverse the decline in domestic oil production that started in 2015, lifting output this year to a near all-time high. ![]() Spending billions of dollars via its state-owned energy giants China National Petroleum Corp. Consistently overlooked is the country’s role as a major oil producer, but the latter matters now because after a years-long lull, Chinese petroleum output is again booming. Ask anyone about China and the oil market, and the conversation will invariably focus on voracious consumption - and, perhaps more recently, the surge in electric-vehicle sales. ![]()
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