Beijing looks to ocean resources for energy needs

BEIJING: Offshore areas of China will become a major energy growth driver in the country for years to come, especially in the oil and gas (O&G) sector, in which its increment will come mostly from offshore resources in China, analysts say.

China’s offshore crude increment last year accounted for a record high of more than 80% of the country’s total growth volume, while the exploitation of offshore natural gas resources is also steadily advancing toward ultra-deep waters, said the Energy Economics Institute under the China National Offshore Oil Corp (CNOOC), the country’s largest offshore driller.

The institute believes that China’s offshore O&G output will continue increasing this year. Offshore crude output will rise 5.4% to 57.6 million tonnes, accounting for around 80% of the country’s total crude increment.

Offshore natural gas production will exceed 20 billion cubic metres, up 6.7% year-on-year and making up around 12% of the country’s gas increment, it said.

The Chinese market remains resilient, and the country’s carbon peak and neutrality ambitions and its energy transition will further accelerate the development of its offshore energy production, it said.

Li Ziyue, an analyst with Bloombergnef, said China’s offshore O&G output has great upside potential in the years to come.

CNOOC, for example, expects its O&G production to rise more than 6% each year during the 2022-24 period, while its continuous upstream investment and production commitment will also play a critical role in China’s energy supply security, Li said.

CNOOC accounted for more than half of China’s total O&G output growth in 2021, while the driller is also seeking to use its engineering prowess to become a major player in offshore wind power projects, she said.

The company said earlier that it would further take advantage of the company’s offshore advantages while laying out the new energy industry to enhance its position as the country’s top offshore O&G driller.