Beijing Pushes Domestic Oil Production as Iranian Supply Dries Up
China needs its biggest oil and gas producers to drill more, explore more, and build strategic supply bases as the Iran war forces Beijing to confront an uncomfortable reality: even the world's largest crude stockpile cannot replace a dependable supply of oil indefinitely. China's National Energy Administration has called on PetroChina, Sinopec, CNOOC, and other domestic producers to expand…
Beijing is pushing domestic oil production as the Iran supply dries up, according to a report by OilPrice. The National Energy Administration has called on PetroChina, Sinopec, CNOOC, and other domestic producers to expand production capacity, increase investment, and accelerate the development of national oil and gas supply bases.
This directive comes following eight months of disruptions to Middle Eastern oil shipments, soaring freight costs, and the effective disappearance of Iranian crude from the market. China has managed the crisis better than most major oil importers, largely because it spent years buying crude when prices were favorable and storing enormous quantities of it.
However, this strategy is not indefinite, as Beijing's oil inventories are finite. In September, Chinese refiners processed approximately 13.99 million bpd of crude, with domestic production contributing 4.43 million bpd and imports supplying 9.03 million bpd.
Brief written by urgent.news from OilPrice's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
