News

China Oil-Demand Fears

As a Covid-19 comeback in Asia’s most significant oil user generates worries in the crude market, China is tightening controls and cancelling flights.

Local governments hurry to close several cities and townships. Travellers are being turned away from famous tourist attractions as authorities try to stem the rapidly spreading delta variety during the high summer tourism season. As a Covid-19 comeback in Asia’s most significant oil user generates worries in the crude market, China is tightening controls and cancelling flights.

As officials try to stop the fast-spreading delta variant amid the busy summer vacation season, local administrations are rushing to close many cities and townships. People turned away from popular tourist destinations.

China has dealt with the occasional virus epidemic in the past but can usually restrict the outbreaks. That has helped back a strong recovery from the pandemic and a more significant recovery in oil. However, this has resulted in an increase in illnesses worldwide and repeated lockdowns in some countries, most notably Southeast Asia, reducing petroleum usage.

Full-capacity production

China has begun full-capacity production at its first independently developed deepwater oil project. According to a statement issued to Global Times on Monday by China National Offshore Oil Corporation (CNOOC), located in the eastern region of the South China Sea. CNOOC had stated that the Liuhua 16-2 oilfield cluster would begin production in September 2020.

CNOOC wants to put 26 wells into production and development as part of the project, using floating production storage and offloading (FPSO) and three underwater production systems.

The Eastern South China Sea is one of CNOOC’s most major crude oil and natural gas producing zones, with simple gravity ranging from light to medium. According to CNOOC, as of the end of 2019, reserves and production in the Eastern South China Sea totalled 633.9 million BOE and 242,026 BOE/day. It accounts for 12.2 per cent of the company’s total funds and around 17.4 per cent of its output. A total capacity, Liuhua 16-2 accounts for roughly one-fifth of all production in the eastern region of the South China Sea.

The first deepwater gas field

CNOOC also began total production from its first deepwater gas field at the end of June. The area is estimated to produce 4.39 billion cubic meters of natural gas or 2% of China’s total output.

The Chennai-1 well drilled at the South China Sea’s Lingshui 17-2 field and may increase the company’s total natural gas production capacity to more than 13 billion cubic meters annually. The start of production from the Chennai-1 well is part of CNOOC’s goal to significantly enhance offshore drilling to increase natural gas’s portion of the overall output from 21 per cent today to half by 2035.

Support Platform Spread Trading Instrument

Sending

User Review

0 (0 votes)

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News