China’s Oil and Gas Industry to Focus on Environment Impact
China’s oil and gas industry is set to reinforce efforts to reduce environmental impacts of its projects and operationsin 2019, said a research.
According to a new research from DNV GL, six in ten (61%) senior oil and gas professionals in China say their organizations are actively preparing for the transition to a lower carbon energy mix compared to 51% globally.
Industry leaders’ focus on decarbonization aligns with the Chinese government’s new ‘Blue Sky’ plan to tackle air pollution by reducing emissions of sulphur and nitrogen oxides and other pollutants by at least 15% from 2015 levels by 2020.
The technical advisor to the oil and gas industry said that these findings appear in A test of resilience, the technical advisor’s ninth annual report on the outlook for the oil and gas industry. The research provides a snapshot of sector confidence, priorities and concerns for the year ahead, based on a global survey of nearly 800 senior oil and gas professionals and in-depth interviews with sector leaders.
It finds a clear majority (79%) of senior industry professionals in China expect demand for gas to exceed supply in the next five years (compared with 43% globally) as the country’s government continues to switch national energy consumption from coal to gas as part of its clean-up strategy.
Nearly three quarters of China’s senior oil and gas professionals (74%) predict increases in investment to decarbonize gas supply in 2019, compared with 56% globally. Almost two-thirds (61%) say not enough investment is currently being made in liquefied natural gas and pipeline infrastructure.
“DNV GL’s research shows more companies across China’s oil and gas value chain working to deliver the government’s Blue Sky policy while simultaneously starting to adjust to the global transition to lower carbon energy production and consumption,” said Arthur William Stoddart, Regional Manager of Greater China, Korea & Japan, DNV GL - Oil & Gas.
“Prospects for gas in China look positive if supportive infrastructure investment materializes. The boost to the Chinese oil and gas industry from this focus on gas is being reflected in high levels of confidence in the national and global industries and their own organizations’ spending plans and financial targets,” Arthur William Stoddart, added.
China (87%) and Brazil (93%) rank highest in the world for confidence in global oil and gas sector growth in 2019, compared to 76% globally. China respondents’ confidence in their organizations’ own overall prospects this year are at a world-leading 92%, sharply higher than 70% last year.