Monday, July 13, 2015

From China overtakes US as top crude importer as refinery maintenance slows

China’s crude processing is poised to climb 2.5% in the next three months from the previous quarter amid reduced refinery maintenance, according to industry analyst forecasts.


China regained its status from the US as the world’s biggest crude oil importer as shipments surged to fill the Asian country’s strategic petroleum reserves.

Overseas purchases by China rose to 29.49 million metric tons in June, a 27% increase from May when shipments were the least since February 2014, according to preliminary data released by the Beijing-based General Administration of Customs on Monday. That’s equivalent to about 7.2 million bpd, Bloomberg calculations show. US crude imports last month averaged 7.08 million bpd, according to data from the Energy Information Administration.

China’s crude imports rose as it began filling the second phase of emergency reserves in the eastern city of Qingdao that have a capacity of 3 million cubic meters (about 19 million bbl). Oil imports may climb in the third quarter from the previous three months as another storage site in the southern Chinese city of Huizhou is scheduled to open, according to ICIS China, a Shanghai-based commodity researcher.

“Filling of the strategic reserves in Qingdao definitely played a part in the increase,” said Amy Sun, an analyst with ICIS China. “China will overtake the US as a permanent top crude importer in a year or two.” Read more here

Friday, January 23, 2015

How to Remain Profitable in a Tough Oil Market

Given the recent drop in oil prices, companies are presented with a dichotomy—while they’ve cut 2015 capital expenditures (CAPEX) by 25-40%, production levels for existing operations are likely to remain at 2014 levels, or higher. The challenge now lies in improving operational efficiency and productivity, reducing costs, and mitigating risk to remain profitable in this tough oil market. This paper presents a single real-time performance-based solution for simulating, operating, and optimizing your upstream operations. Learn more here.