Chinese oil and gas executives upbeat about industry outlook

Updated 2018-03-01 09:40:02

Over two thirds of Chinese oil and gas executives expect profit growth in the industry this year bolstered by efficient cost management although crude prices remain low, DNV GL, a Norway-based maritime and energy consultancy, told Shanghai Daily today.

Around 67 percent of the executives in China are confident about the industry's growth, above the average of 63 percent globally and a jump from 23 percent in this country a year ago, DNV GL's survey covering 813 respondents worldwide showed.

"That's not because they expect crude price will surge, but because they are confident to make profits under low crude prices amid cost cuts," said Wu Yi, DNV GL's oil and gas regional business development manager for China, South Korea and Japan.

Oil and gas giants worldwide have cut 35 percent of running costs in 2015 on average after crude prices started to tumble in late 2014, followed by another cut of 25 percent in 2016, Wu said.

Chinese companies have also managed that "mainly by saving exploration costs," alongside measures such as layoffs and streamlining administrations, Wu said.

China National Offshore Oil Corp has managed to keep exploration costs at around per barrel in the north Bohai Sea region, "below the global average between and US per barrel for offshore fields."

Meanwhile the group has saved management costs by trimming administration procedures, such delegating decision-making rights to its branch offices in south China, he added.

While the World Bank and the U.S. Energy Information Administration predicted crude will average between and per barrel in 2018, most of the efficient oil and gas giants in China can make profits prices as low as -40 per barrel, DNV GL's survey showed.

"Especially the three largest companies," Wu said. "They can manage more efficient cost cuts thanks to larger scale."

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58February 20 2019 05:41:03

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16February 20 2019 05:41:03

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18February 20 2019 05:41:03

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords