Most of the oil production in China comes from old giant
onshore fields, which are now struggling to maintain output.
Consequently onshore production is at plateau despite the opening up of
new areas on the west of the country.
Conversely offshore oil production is growing as western companies and
local Chinese organisations develop the series of basins that lie on the
Chinese continental shelf, especially in the Bohai Gulf.
Gas production is growing both onshore and offshore. Due to its large
reserves of coal China has only recently begun full exploitation of its
gas reserves with new pipelines and exploration of gas-prone basins in
the western interior and offshore.
exceptional economic growth of China since 2002 has led to dramatically
increasing oil consumption. China is now second only to the USA in oil
use but still lags very far behind in per capita consumption.
Rapid growth will continue over the next few years as new automobiles
will likely hugely increase the country’s oil imports despite a slow
down in 2009. Finally near 2020 higher prices will begin to constrain
demand as cash-rich economies of the world struggle to get hold of
Gas consumption is comparatively modest but will also grow very rapidly
as new supplies are obtained within the country and as imports begin
from the FSU by pipeline, and as LNG from elsewhere in Asia.