New law gives China’s regions power to tax resources

Chinese legislators have approved a law that will give local governments the authority to tax as many as 164 resources, including fossil fuels, minerals and eventually water, the Ministry of Finance said on Monday.The National People’s Congress, China’s top legislature, approved the resource tax law, which would take effect in September next year, the ministry said.Officials said it would not raise the overall taxes on local companies.Major resources such as crude oil or rare earths would remain subject to a fixed tax rate set by the central government, but local authorities would be able to a

China Policy 2019-08-29

【ECF News】China NEA Director: Establish "14th Five-Year" Energy Plan ASAP; Accelerate More Oil and Gas Supporting Policies

On August 13, Zhang Jianhua, director of the National Energy Administration, wrote a signed article "Promoting the high-quality development of energy industry in the new era (in-depth study and implementation of Xi Jinping's new era of socialism with Chinese characteristics)" in China's official newspaper People's Daily.The article pointed out that the energy development plan during the "14th Five-Year" and a longer period of time should be established as soon as possible, and the guiding opinions for promoting the high-quality development of the energy industry should be formulated. It is nec


【ECF News】Oil & gas exploration and development in China: why is it difficult for new entrants?

Oil & gas exploration and development is a high-risk industry. Hundreds of millions could be invested with nothing coming out. Therefore, engaging in oil and gas exploration and development requires sufficient financial strength and anti-risk ability, in addition to the corresponding technology and experience. In these respects, many new entrants are seriously inadequate compared with the oil majors.As China's oil and gas system reform continues to deepen, the opening door to oil and gas exploration and development is also widening.From the Ministry of Natural Resources's (formerly the Ministr

ECF China Shale Weekly Review - July 28, 2019

ECF China Shale Weekly Review - July 28, 2019

【ECF News】 China Oil Drilling Market Analysis

In the next few years, the workload of China's oil industry is expected to maintain rapid growth.

【ECF Mews】China Oil & Gas in 2018: shale gas exploration and development progressed smoothly; oil & gas exploration investment continued to rise

China's Ministry of Natural Resources released "National Oil and Gas Resources Exploration and Production Report (2018)" on Monday, concluded the country's oil & gas exploration and production status for the past year.1. Oil & gas exploration and mining investment continued to riseIn 2018, the investment in exploration and production of oil and gas (including oil, natural gas, shale gas, coalbed methane and natural gas hydrate) was 63.658 billion yuan and 203.106 billion yuan, up 8.9% and 24.7% year-on-year. 44,000km of 2D seismic survey was applied with an annual increase of 13.5%. 34,000 squ

ECF China Shale Weekly Review - July 14, 2019

ECF China Shale Weekly Review - July 14, 2019

【ECF News】Accelerated technological innovation in the oil and gas industry

Author: Lv Jianzhong, Deputy Director, CNPC Economics & Technology Research InstituteAs the pace of global energy transformation continues to accelerate, the international oil and gas industry is entering an important turning point and facing a historic choice of technology-led future. International oil companies and service companies are increasingly taking technological innovation as the company's power source and lifeline. In particular, more emphasis is placed on the practicality and pertinence of technology, the drive for value creation, collaborative innovation and cross-border cooperati

Tech CNPC ECFShale Opinion 2019-07-12

China Just Created A Huge Opportunity For The Oil & Gas Industry

China will remove the joint venture requirement for foreign companies wanting to enter its oil and gas industry as it moves to open up a range of industries as per a pledge it made during its continuing trade dispute with the United States.Bloomberg reports the Chinese National Development and Reform Commission had announced it would remove the joint venture requirement for oil and gas projects along with a rule stating that only local firms can control gas networks in cities with populations of over half a million people.This opens up a lot of opportunities for foreign companies who are eager

China Policy 2019-07-03

Wood Mackenzie comments on policy developments in China's upstream sector

Wood Mackenzie has issued the following comment on policy developments in China's upstream sector:Yesterday [30 June], China’s National Development and Reform Commission issued the Special Management Measures for Foreign Investment Access (Negative List) (2019 Edition). This removes restrictions on foreign companies to joint-venture and/or cooperate with Chinese enterprises when investing in new oil and gas exploration and development activities.Wood Mackenzie believes more regulatory changes that will specify how these rules will work in practice are on the way.Further incentives and/or acrea


China to Ease Ownership Rules on Oil Exploration, City Gas

China is easing foreign access to a range of industries including oil, mining and city gas pipelines as the government follows through on pledges to open up to overseas investors.China will scrap the need for joint ventures in oil and gas exploration, and for domestic control of gas networks in cities with more than 500,000 people, the National Development and Reform Commission said on its website Sunday. The statement formed an update to the commission’s so-called negative list of industries where overseas investors are restricted or banned.The new rules take effect July 30. The commission sa

ANALYSIS: China's latest energy liberalization policy set to break oil and gas monopolies

China's decision to open up its oil and gas infrastructure to third parties will pave the way for the break-up of energy monopolies in the country and the creation of national pipeline companies.Operators will be required to open their facilities to all eligible users through transparent tendering processes, and to separate their pipeline business from other segments such as upstream production and sales, according to the new measures announced by China's National Development and Reform Commission on May 24.As part of this resolution, a cornerstone of Beijing's energy liberalization strategy,


【ECF News】China NEA Says to Increase the Intensity of Oil, Gas E&P, Earges Majors to Stick to 2019-2025 Plans

On May 24th, the National Energy Administration organized a video conference on promoting oil and gas exploration and development in Beijing. NEA heard reports on the exploration and development of four oil majors including PetroChina, Sinopec, CNOOC and Shaanxi Yanchang Petroleum. The Ministry of Natural Resources and the relevant department of the National Energy Administration reported the progress of the work of the department.NEA pointed out that in order to further implement the work of oil and gas exploration and development in 2019 and in the following years, oil companies should imple

Why China Hasn’t Slapped Tariffs On U.S. Oil Imports

The United States has quickly become one of the top crude producers in the world thanks to the shale boom fueled by the shale oil and gas powerhouse that is West Texas’ Permian Basin. In fact, the U.S. is on track to overtake Saudi Arabia as the world’s leading exporter of oil, natural gas liquids and petroleum products by the end of the year in a development very, very few could have predicted. At the same time that the U.S. has risen to the top of the global oil production game to become the fastest-growing oil producer in the world, China has also broken its own records to become the fastes

China Oil Import 2019-05-21

Shanghai crude oil futures open lower

Crude oil futures opened lower Wednesday on the Shanghai International Energy Exchange.The most active crude oil contract for June delivery was down 1.3 yuan (about 19 U.S. cents) to open at 498.5 yuan a barrel.China launched the crude oil futures trading, which is open to overseas investors, in March 2018.

China Crude Futures 2019-05-16

Chinese Oil Majors Backtrack On Pledge To Buy Iranian Oil

It was a question that just as recently as last week was still undecided. Would Beijing kowtow to Washington’s demand that it stop importing Iranian oil at the start of May after the 180-day import waiver period ended? The answer, at least for now, is that Beijing will comply.Oil majors Sinopec Group and CNPC, China’s two top oil refiners, are reportedly skipping purchases of Iranian oil for loading in May, Reuters reported on Friday, citing people familiar with the deal. On April 22, President Trump surprised oil markets when said he would end 180-day Iranian oil import waivers put in place i

China Oil Import 2019-05-13

China's energy consumption hits five-year record

Growth in China's energy consumption remains robust while the forms of energy continued to diversify in 2018, according to an annual report on China's energy development released Sunday by the China Electric Power Planning and Engineering Institute.Total energy consumed last year reached 4.64 billion metric tons of standard coal, a year-on-year growth of 3.3 percent – a five-year record, according to the report.Consumption of clean energy, including natural gas, hydropower, nuclear power and wind power, accounted for 22.1 percent of energy consumption last year, up 1.3 percent compared with th

China Energy 2019-04-30

Sinopec Group Names General Manager After Year-Long Vacancy

Sinopec Group, China’s largest oil refiner, named President Ma Yongsheng of its Shanghai-listed arm to fill the post of general manager, which has been vacant for a year.Fifty-eight-year-old Ma is an oil industry veteran and a geological exploration specialist. In 2006, he led the discovery of the Puguang gas field in the southwestern province of Sichuan. The field is the largest high-sulfur natural gas field ever discovered in China.Ma joined Sinopec’s exploration department 1998, after years of working in the other state-backed oil major, China National Petroleum Corp. (CNPC). In 2007, he wa

Sinopec 2019-04-23

China’s Demand for Energy Undimmed by Economic Slowdown

Despite concerns about an economic slowdown, China’s demand for energy continued to see strong growth last year, with both gas and renewables seeing double-digit growth in consumption.China surpassed Japan to become the world’s biggest gas importer last year, largely thanks to the government’s drive to shift the burden of heating homes away from highly polluting coal power plants and onto gas plants. China’s gas consumption rose 17.7% to 279 billion cubic meters (bcm), according to the U.S. International Energy Administration. That is still around a third of U.S. gas consumption, which rose 10

China Economy 2019-04-11

China Struggles to Reduce Foreign Oil Risk

China is increasing investment in oil exploration to limit its dependence on imports, but forecasts say domestic production will keep declining as the country's demand grows.After years of warnings, it appears that China's government is now taking the strategic implications of import dependence as a higher priority, spurred by rising reliance on foreign natural gas as well as oil.On March 6, the South China Morning Post reported that China National Petroleum Corp. (CNPC) plans to boost its exploration budget fivefold this year to 5 billion yuan (U.S. $745 million), citing an interview with cha


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