Related Articles
Outlook 2021
Forward article link
Share PDF with colleagues

The costs of competition in China’s oil market

The business models of refining incumbents face disruption from integrated new entrants

Oil market watchers are used to thinking about China as a downstream market—dependent on imports to meet three-quarters of its crude requirements and as a massive market for transport fuels gasoline, diesel and jet. To the extent that we tend to be aware of China as the producer of nearly a third of global manufacturing output, it is usually through indirect association, where a higher PMI might signal stronger demand for diesel or naphtha. But a new generation of mega-refineries coming onstream in China is putting these two worlds on a collision course. New entrants The quest for upstream integration lured private sector textile producers Rongsheng and Hengli into China’s refining sector

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Beijing strives to balance security and decarbonisation
15 October 2021
The ongoing global energy crunch underlines the difficult task facing China’s leaders in balancing energy supply security while reaching net zero in the next 40 years
Occidental exits Ghana
15 October 2021
The US super-indie is divesting its assets in the country
Gran Tierra cranks up the gears
14 October 2021
Midstream takeaway has returned to normal in Colombia, paving the way for production growth opportunities
Sign Up For Our Newsletter
Project Data
Maps
PE Store
Social Links
Social Feeds
Featured Video