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[Aug. 7, 2014]  China has halved the quantum of shale gas it expects to produce by 2020 after early exploration efforts to unlock the unconventional fuel proved challenging, according to an industry website and a government source.China, believed to hold the world’s l
[Jul. 14, 2014]  HOW does conventional wisdom – i.e. the opinion of the majority – become conventional wisdom? This is a subject that the blog pondered over the last few days as it wandered around Euro Disney. Unfortunately, Mickey, Donald and his pals weren’t able to give us an answer. The reason why we dwelled so much on this subject was because of our post last week on coal-to-olefins (CTO) in China. We feel, like many others perhaps should feel, that we might have have been suckered-in to believing that water was the Achilles Heel of the process. If water is not really a challenge, and much of the planned new US supply come on-stream towards the end of this decade, here is a scenario: ?US petrochemicals companies suffer severe oversupply distress, which will either be short term or long term, depending on your view of the global economy. ?This could enable China to buy-up distressed US petrochemicals assets. It has ample reserves to go on a buying spree, especially if it reduces its holdings of US Treasuries. Back to our main point about conventional wisdom. Perhaps some of those at the top are happy to continue to peddle the CTO water challenge fallacy because they have pinned their career success on huge ethane-based capacity additions. When things go wrong, they might have already retired or moved on to other positions and so there is nothing in it for them to rock the boat. Less senior people worry that if they, too, rock the boat by expressing their doubts, on either CTO supply or more importantly the macro-economic fundamentals, they will be committing career suicide. It is easier to follow the herd and say, “we didn’t see this coming” when things go wrong, rather than be an outlier. Here is a reminder, from this excellent article by my colleague Nigel Davis, on the scale of what’s being planned in the US: ?As many as 11 new crackers could be built in the US before the end of the decade. Add the capacity from eight expansions for existing facilities announced to date and the potential capacity increase is 51% or 13.9m tonnes. US polyethylene capacity could rise by 47%, or 7.1m tonnes. ?Even if we tinker with some of the announced US cracker on-stream dates (see the above estimate, from ICIS Consulting, of actual, as opposed to announced, start-up timings), the big slug of ethylene capacity – as much as 7m tonnes – would be available after 2017. Tellingly, the ‘build-out’ – between 2017 and 2020 – is far above that in past ethylene cycles.
[Jul. 14, 2014]  The US and China signed new agreements that are expected to increase co-operation on energy issues.
China Exploration
[Sept. 1, 2014]   Nexen Energy ULC contributed 36.3 million boe during this year’s first half to CNOOC Ltd.’s total net oil and gas production of 211.6 million boe, a 6.8% year-over-year increase, the company reported. In comparison, Nexen produced 24.8 m
[Sept. 1, 2014]   PetroChina announced that the company achieved steady growth in its production and operations, delivering sound operating results that exceeded expectations in the first half of 2014 Wobbly first-half downstream performance has been overhadowed
[Aug. 28, 2014]   China National Offshore Oil Corp (CNOOC) has received a quota from the government to export about 100,000 tonnes of oil products in the second half of the year, its first such permit, sources close to the matter said on Wednesday. Overseas sale
China Refining
[Aug. 29, 2014]    PetroChina Co. , China’s biggest listed oil company by capacity, Thursday posted a 4% increase in its first-half profit, helped by improved results at its refining and chemicals businesses. Beijing-based PetroChina’s refining margins have
[Aug. 29, 2014]   Industry sees prices under pressure amid continued uncertain economy Leading oil and natural gas companies PetroChina Co Ltd and CNOOC Ltd reported first-half results on Thursday that reflected weaker demand for refined products. CNOOC, th
[Aug. 29, 2014]    A surge in Chinese buying to near record highs pushed up West African crude oil exports to Asia in September, a Reuters survey of traders showed on Thursday. Exports from Nigeria, Angola and other West African oil producing nations are se
China Biofuels, Green Energy
[Jul. 16, 2014]  China National Petroleum Corporation (CNPC) announced Tuesday that the petroleum drilling and exploration operation of Zhongjiannan Project in the South China Sea was smoothly completed on schedule July 15 with oil and gas shows found. In accordance
[May 22, 2014]  Although exact details are unclear, Russian and Chinese media outlets are reporting that ten years of negotiations surrounding the sale of natural gas from Siberia to China have finally concluded at the tail end of a state visit by President Vladimir Puti
[May 19, 2014]  Western efforts to punish Russia for its military adventures in eastern Ukraine look set to backfire in spectacular fashion.This coming week, Russian President Vladimir Putin is poised to unveil a very big prize: access to the world’s largest, fas
China Gas , LNG / LPG
[Sept. 1, 2014]   PetroChina has reported encouraging H1 results for its gas business, as government-led price reforms introduced last year have continued to improve profitability and ease the financial burden of the company’s loss-making gas imports. Alth
[Sept. 1, 2014]   Chinese energy giant PetroChina Co. Ltd. ( PTR ) announced its first-half 2014 earnings of RMB 68.1 billion or RMB 0.37 per diluted share, compared with RMB 65.5 billion or RMB 0.36 per diluted share a year earlier. Earnings per ADR came in at $6.03
[Sept. 1, 2014]   LPG prices in East and South China rebounded strongly this week amid a rise in replenishment activity and a reduction in supply, domestic trade sources said Friday. In East China, domestically produced LPG traded at around Yuan 5,850-6,000/mt (
China Pipelines
[Sept. 1, 2014]   Gazprom has set the start of gas supplies to China for 2019, the Russian company said after a meeting between its CEO Alexei Miller and China’s First Deputy Prime Minister Zhang Gaoli.  The 30-year contract for the supply of up to 38 billi
[Aug. 29, 2014]   The Russian petrochemicals firm Sibur made a test shipment of liquefied petroleum gas (LPG) to China in July and signed a long-term contract with a Chinese customer in August, Sibur said on Thursday. The contract stipulates “regular lique
[Aug. 28, 2014]    The construction of energy corridor in central Asia is to enter a new stage as Chinese Vice Premier Zhang Gaoli called for further energy cooperation with Turkmenistan during his visit to the country. China will closely cooperate with Tur
China Terminals & Storage
[Aug. 20, 2014]   The Chinese government has rejecting an environmental impact assessment for an $84 million commercial crude oil storage base planned by Sinopec Corp citing insufficient measures to cut potential pollution.The proposed second phase of Baishawan com
[Aug. 15, 2014]  Singapore’s Universal Terminal, backed by China’s state oil giant PetroChina , plans to raise as much as S$1 billion ($800 million) in an initial public offering of units of a business trust, two sources with direct knowledge of the matter told Reuters
[Mar. 28, 2014]  New loan issuance affects the oil tanker shipping industry One of the key indicators that grabs analysts’ attention is China’s new loans. Issuing new loans is an important way of stimulating economic growth, as it increases demand. However, ex
China Petrochemical
[Sept. 1, 2014]   China’s growing appetite for methanol has ignited a renaissance in North America, where vast supplies of cheap natural gas from the U.S. shale boom are attracting Chinese investments into new methanol plants. The methanol market has accel
[Aug. 29, 2014]   Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (hkex:00338) SHI, +4.16% today announced the unaudited operating results of the Company and its subsidiaries (the "Group") prepa
[Aug. 29, 2014]   Guanghui Energy Co. Ltd has become the first private enterprise licensed to ship crude oil into China. Xinjiang Guanghui Petroleum Co. Ltd, a subsidiary of Guanghui Energy Co. Ltd., has been approved by the Ministry of Commerce to import 200,00
China Commodities
[Sept. 1, 2014]   China’s growing appetite for methanol has ignited a renaissance in North America, where vast supplies of cheap natural gas from the U.S. shale boom are attracting Chinese investments into new methanol plants. The methanol market has accel
[Aug. 29, 2014]    A surge in Chinese buying to near record highs pushed up West African crude oil exports to Asia in September, a Reuters survey of traders showed on Thursday. Exports from Nigeria, Angola and other West African oil producing nations are se
[Aug. 29, 2014]   China’s Guanghui Energy has received a crude oil import licence from the government, becoming one of only a few private firms to win the sought-after licence as Beijing slowly loosens its grip on the state-controlled market. While the licence w
China Finance & Acquisition
[Sept. 1, 2014]   Chinese energy giant PetroChina Co. Ltd. ( PTR ) announced its first-half 2014 earnings of RMB 68.1 billion or RMB 0.37 per diluted share, compared with RMB 65.5 billion or RMB 0.36 per diluted share a year earlier. Earnings per ADR came in at $6.03
[Sept. 1, 2014]   PetroChina announced that the company achieved steady growth in its production and operations, delivering sound operating results that exceeded expectations in the first half of 2014 Wobbly first-half downstream performance has been overhadowed
[Aug. 29, 2014]  tate-run Chinese oil giant CNOOC Ltd. blamed its Nexen Energy ULC unit for pushing up operating costs Thursday, the latest evidence that China’s binge on Canadian energy assets is having mixed results.More than one year after completing its controve
China Govt & Regulatory
[Aug. 28, 2014]   China Petroleum & Chemical Corp. (386), Asia’s top refiner, drew interest from China Life Insurance Co. (2628) and ENN Energy Holdings Ltd. (2688) as it seeks to raise about $16 billion selling a third of its fuel-retailing business. 
[Aug. 21, 2014]    During Uzbekistan President Islam Karimov’s visit to China on August 19 and 20 and his talks with Chinese President Xi Jinping, the two countries approved a five-year development plan for bilateral relations and signed a joint declaratio
[Aug. 20, 2014]   China’s state-run energy giant Sinopec has shortlisted suitors to buy a US$16 billion (S$20 billion) minority stake in Sinopec Sales, the world’s largest fuel retail network, in what would be Asia’s second-largest mergers and ac
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