China joins elite offshore energy club
The country's largest offshore oil explorer's oil and gas production last year totaled 64.13 million metric tons of oil equivalent, of which 50 million was produced domestically, said its president Fu Chengyu on Tuesday.
"It marks a milestone that China has become one of the world's largest offshore oil producers after the United States, the United Kingdom, and Norway ... And the marine petrochemical industry will boost the country's energy supply," Fu said.
China's surging energy demand has led the nation's foreign oil dependence ratio to reach a new high of 55 percent in 2010.
"We estimate that 60 percent of China's oil consumption will be imported by 2020," said Wang Jiacheng, a researcher at the Academy of Macroeconomic Research under the National Development and Reform Commission.
Consequently, offshore oil exploration, which is still at an early stage, has become a major factor in quenching the nation's thirst for the natural resource.
"We expect our gas and oil output to exceed 200 million metric tons of oil equivalent by 2020, including 50 million tons of LNG (liquefied natural gas)," Fu told China Daily.
He added that about 800 billion yuan ($121 billion) to 1 trillion yuan would be invested during the 12th Five-Year Plan (2011-2015), with the majority going to offshore oil exploration.
The company's total profits exceeded 90 billion yuan in 2010, up over 70 percent from 2009's 52.4 billion yuan, Fu said.
Offshore oil will make up 40 percent of the world's oil output by 2015, compared with 34 percent in 2004, according to figures from the China Petroleum and Petrochemical Engineering Institute. Offshore gas will account for 35 percent of the world's gas output over the same period.
China's central government said in its 12th Five-Year Plan that the country should develop and implement a marine development strategy, and improve technical ability and comprehensive management.
CNOOC has tapped into Africa, South America, the Middle East, and Australia for cooperation opportunities in oil and gas projects; Kazinform cites China Daily.
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