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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
[Aug. 26, 2014]   Wenchang 13-6 oilfield, located in the west of Pearl River Mouth Basin with an average water depth of approximately 120 meters, is part of the Wenchang oilfields and shares the existing adjacent facilities for the development. The main production fa
[Aug. 26, 2014]   China Rongsheng Heavy Industries Group Holdings Ltd. reports that Ocean Sino Holdings Ltd., an indirectly wholly owned subsidiary of the company, has entered into a share purchase agreement with New Continental Oil & Gas Co. Ltd. Pursuant t
[Aug. 25, 2014]   Argentina’s state energy company YPF and a subsidiary of China’s Sinopec Group agreed on Friday to extend their joint oil exploration and development projects in the western Argentine province of Mendoza until 2027, YPF said. "New projects
China Refining
[Aug. 27, 2014]   Sinopec’s move towards privatizing part of its massive fuel retail business is well on track. Sinopec chairman Fu Chengyu says the company has now shortlisted 37 bidders for the 30 percent stake offer. Fu adds that the final winner from th
[Aug. 27, 2014]   vOman’s crude oil exports to China have continued to soar amid the economic giant’s rising demand for energy and its increasing reliance on Middle Eastern oil supplies. The sultanate’s oil exports to China jumped 17.7 percent to 100.9mn b
[Aug. 27, 2014]    China Oil Corp, a unit of state-run CNPC, in July received two 240,000-barrel cargoes of jet fuel from Petroleos de Venezuela, and the shipments were sent to the United States, according to an internal PDVSA document seen by Reuters on Monday.
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
[Aug. 27, 2014]   China National Offshore Oil Corp. (CNOOC), the country’s main offshore energy explorer, has pulled out of a deal to take a stake in Shenzhen Nanshan Power.Nanshan’s shares have been suspended from trading on the Shenzhen stock exchange s
[Aug. 27, 2014]   From China to Europe and Argentina, international services firms will be at the centre of new unconventional output HUNDREDS of thousands of shale gas wells have been drilled in the US since the sector started booming in the middle of the past
[Aug. 27, 2014]   CHINA’S onshore liquefied natural gas (LNG) producers, a key part of the government’s plan to increase China’s natural gas use, face a difficult road ahead as they struggle to overcome slower than expected demand, overcapacity and squeezed margins a
China Pipelines
[Aug. 27, 2014]   The third pipeline of China’s west-to-east gas project finished its western section Monday, it’s a major quencher of energy-thirst in the eastern and southern part of the country.  The 2445 kilometre long channel starts from Xin Jian
[Aug. 25, 2014]    China National Petroleum Corp (CNPC) will establish a joint venture with Uzbekistan state oil company Uzbekneftegaz to build and operate Line D of the Central Asia-China Gas Pipeline in Uzbekistan. Upon operation of Line D, the Central As
[Aug. 22, 2014]  China National Petroleum Corp. (CNPC) will establish a joint venture with Uzbekistan state oil company Uzbekneftegaz to build and operate Line D of the Central Asia-China Gas Pipeline in Uzbekistan.Upon operation of Line D, the Central Asia-China Gas P
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
[Aug. 27, 2014]   CB&I has announced that it has been awarded a contract by Shenhua Ningxia Coal Industry Group Co. Ltd. for the licence and engineering design of a grassroots petrochemicals complex to be built in Lingwu, Yinchuan City, Ningxia, China The co
[Aug. 25, 2014]    “I believe and will prove that our country is not deficient in oil reserves. If I can use my 20-year lifetime in exchange for a large oil field, I will.” Those comments, recorded in an illustrated history of the Songliao Basin
[Aug. 25, 2014]   Argentina’s state energy company YPF and a subsidiary of China’s Sinopec Group agreed on Friday to extend their joint oil exploration and development projects in the western Argentine province of Mendoza until 2027, YPF said. "New projects
China Commodities
[Aug. 26, 2014]   Chinese oil and gas giant Sinopec is reportedly planning to list its oilfield services unit, Sinopec Oilfield Services Corp (SOSC), in Hong Kong with plans to raise USD1.5bn. SOSC provides engineering and technical services for firms engaged in oil
[Aug. 26, 2014]   Kuwait plans to increase the volume of crude oil exports to China to 500,000 barrels a day (bpd) in three years, an executive at the state-run Kuwait Petroleum Corporation (KPC) said Saturday. On Monday, Kuwait concluded a new 10-year deal with
[Aug. 26, 2014]   China has stepped up its engagement in the Middle East over the past decade as the Asian giant seeks to safeguard and diversify crucial energy and commodities needed for long-term economic growth. From developing some of the world’s biggest oi
China Finance & Acquisition
[Aug. 27, 2014]   Russia may provide some state support for sanctions-hit oil producer Rosneft, but significantly less than it has asked for, Economy Minister Alexei Ulyukayev said on Tuesday . Rosneft head Igor Sechin has asked for 1.5 trillion roubles ($41.5 b
[Aug. 27, 2014]   Sinopec’s move towards privatizing part of its massive fuel retail business is well on track. Sinopec chairman Fu Chengyu says the company has now shortlisted 37 bidders for the 30 percent stake offer. Fu adds that the final winner from th
[Aug. 27, 2014]   Chinese oil giant Sinopec Corp has signed a preliminary deal with internet company Tencent Holdings Ltd to introduce digital commerce to the retail arm the oil giant is partially privatising. Sinopec said in a statement on Tuesday that it has a
China Govt & Regulatory
[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
[Aug. 20, 2014]  I argued back in April that China’s ’synthetic natural gas’ (syngas or SNG, which is gas made from coal) is ’bad economics, bad science and an environmental catastrophe’. I also said that ’what is striking is the ambition of Chinese plans versus the wi
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