Posted on 06/02/2019 2:38:11 PM PDT by Hojczyk
China’s oil import dependence is at 70 percent currently, so it can’t achieve this self-sufficiency in a decade or two, even if it were to start steadily reversing its declining oil production and tap more shale oil and gas resources.
A PetroChina test oil well at a shale field in western China could finally mean a strong commercial potential for shale oil for the first time in the world’s top crude importer, Morgan Stanley said earlier this year. The shale boom in China, however, would be just a fraction of the U.S. shale revolution—Morgan Stanley expects Chinese shale oil production could reach between 100,000 bpd and 200,000 bpd by 2025, which is nothing compared to the millions of barrels of oil pumped in the United States every day.
According to analysts at S&P Global Platts Analytics and Wood Mackenzie, China is set to miss its 2020 shale gas production targets, due to complex geology, low well productivity, marginal economics, and infrastructure constraints.
‘Energy independence’ is still a far-fetched idea in China’s case.
Equally far-fetched is the idea that the fallout from the trade war could result in stifling Chinese oil imports, according to Neil Beveridge, an analyst with Sanford C. Bernstein & Co in Hong Kong.
(Excerpt) Read more at finance.yahoo.com ...
I’m sure Trump knew this; so who is holding all the Trump cards?
I don’t think China gives a damn about the enviro concerns, either.
Maybe China could build an overland pipeline to both the Russian Federation and to Iran, as they are already in a de facto Axis alignment with those two countries.
It would get around all those embargo rules the US is setting up all around the world. And again, they would not have to worry about the environmental impact - not like in the US connecting to Canada.
And all the minorities hounded by the Chinese state would blow it up.
Sounds like what the U.S. went thru in the 70s. FU China
They have a pipeline that comes from Kazakhstan. They have also made several corrupt oil deals in Africa and South America. The demand growth is outstripping the supply growth. One of the reasons they are in the Spratleys.
I have a few friends in China, and they are all scared of the trade war. Petrified is the better description.
Trump has GOT to give Xi a way for him and the Chinese to save face. And then he can’t gloat about anything.
I have no idea if he can bring himself to this. I want him (and us) to succeed but...
China could not care less what happens to Americans so long as China can milk middle class manufacturing jobs away from America.
There is no trade solution with China which can be beneficial to both China & USA. It is IMPOSSIBLE. Because of the horribly skewed trade imbalance.
The only way to get those middle class manufacturing jobs back is to not worry about giving Xi any face saving door. Xi happily was exploiting America for many years. It is high time to kick azz.
Bump.
Right on.
Old adage: You can tell a deal is “good” when both sides walk away dissatisfied.
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