Oil and Gas Market Reform Was Inevitable in China

Amily Zhang — Sun, 11 Dec 2016 08:24:41 +0000

On December 7th, West-east pipeline start to work with the third party. China National Petroleum Corporation （CNPC） sign a framework agreement with Guanghui energy. Guangghui Energy is currently the only one private energy enterprises, with “coal, oil, gas,” three kinds of resources at the same time. The cooperation way is that west east pipeline company collect the corresponding fees from Guanghui energy. According to the belt and road policy, more and more Oil and gas products can be used in the projects, such as oil and gas pipeline, pipe valve and other accessories. Oil and gas market need to be changed on the basis of current economy development.

More and more private enterprise work with CNPC and Sinopec

China National Petroleum Corporation （CNPC）cooperate with private enterprise on oil and gas pipeline for the first time. The project will greatly enhance China’s oil and gas market status and influence. It can optimize the energy structure, and improve the ecological environment. More and more private enterprises will sign forwarding agreement with CNPC and Sinopec, so that promote the reform process of oil and gas market.

The natural gas will become the third major energy source after coal and oil

Natural gas market reform is continuously accelerating without any obstacles. In the forum on energy transformation, the forum focus on the natural gas market reform. In the process of energy transformation, the proportion of natural gas and other clean energy will continue to increase. By the end of the 13th five years plan, natural gas will account for 10%-15% of China’s primary energy consumption. And the consumption proportion can reach to 15% by 2030. Thus natural gas become the third major energy source after coal and oil. We should adhere to the direction of market reform, and mobilize the all parties’ enthusiasm to develop oil and gas resources, national energy bureau deputy director said.

China’s oil and gas market reform

With the belt and road initiative deepening, oil and gas market will become the inevitable reform, such as the interconnection of oil and gas pipeline, the separation of pipeline transportation, the connection of pipe network and LNG terminal.

Oil Drilling Rig Count Continuously Increased in 2016

Amanda — Mon, 18 Jul 2016 07:50:24 +0000

Oil and Gas Drilling Rig Count continuously increased in three weeks in United States, the fastest growth since 2011.
FX168 reports: U.S. oil Service Company Hughes Beck released data on last Friday shows, until the week of 15th July 2016, the number of active oil and gas drilling rig count increased 6 to 357 at United States. Which is the third consecutive increased week.

Active oil and gas drilling rig count in U.S.

More data shows that by the week of July 15, the total active oil and gas drilling rig count increased by 7 to 447. Compared with same period last year decreased 416.
In 2015, the active oil and gas drilling rig count in the United States decreased by 963. It’s the first annual decline since 2002. While the annual decline has reached the largest since 1988. In the five years from 2010 to 2014, the active drilling rig count in the United States average increased by 216 per year. It has hit a high position of 1609 rigs in October 2014, but it has been reduced more than three quarters. While the crude oil prices fell sharply in the 4th quarter of 2014. After reaching to monthly top of 112 USD/barrel (bbl), and 105 USD/barrel at June, fell to 62 USD/barrel. According Brent and West Texas crude oil price. Since then the related industry reduce accordingly, including the oil drilling rigs, the oil and gas line pipes, line pipe steel plates and sheets.

U.S. active oil drilling rig count increased due to the crude oil demand increased.

In addition, Hughes Beck said in the report, the U.S. active natural gas drilling rig count increased by 1 to 89 at the same week. Because Hughes Beck’s data show that the active natural gas drilling count consecutive increased by three weeks. The oil price rise reduced slightly, although this will help the line pipe markets and line pipe steel price.

CNBC pointed that due to the United States and China’s crude oil demand outlook boosted. The oil price continually achieved good performance this week. At the same time, the U.S. oil and gas drilling rig count has also recorded an increase for the third consecutive week. This might make analysts expected the total oil drilling count has bottomed out in the United States, and the crude oil will be improved at the beginning of next year.

Oil drilling rigs have largest increase since 2011.

Financial blog Zerohedge pointed out the U.S. crude oil and gas drilling rigs increased 6 to 357, as the sixth week increased over the past seven weeks( a total number of 41 rigs), the maximum absolute added value since May 2014. The U.S. crude oil drilling rigs count leave out from the low position, and it increased more than 10% currently. As the largest increase since December 2011. Experts believe with the increased oil drilling rigs, more of the line pipe steel will be used and this will help the line pipe price increase for a moment.

Oil and Gas – Octalsteel