Related Articles
Report
Forward article link
Share PDF with colleagues

China's tired fields

China's output is continuing to slow, which is good news for exporters targeting the country

The Daqing field provides a fair illustration of why China's demand for imported crude should keep rising through 2017 and beyond. One of the country's biggest and oldest resources famed for the "Iron Man" legend, its production fell by about 3% in 2016 and further declines are likely. The operator, China National Petroleum Corporation, announced it will slash its exploration and engineering budget for Daqing by 20%. China's fundamental problem is tired fields and increasingly uneconomic costs of production at today's oil price. As Nomura's head of Asia-Pacific oil and gas research, Gordon Kwan, pointed out in a note earlier this year: "China's largest oilfields are ageing rapidly. Advanced

Also in this section
US shale—more where that came from
15 September 2017
America's shale industry is showing few signs of slowing down this year
US gas bulls beware
15 September 2017
US gas production has been stronger than expected. The market will be hoping for a scorching summer and a quick ramp up of LNG facilities
India: more to discover?
13 September 2017
Upstream reforms have lured 45 bidders to the country’s offshore—part of a plan to reduce imports