Data from the research center clearly indicates that China’s consumption of all fuels in 2023 will be 700,000 bpd higher than last year. As OilPrice expert Simon Watkins writes, policy support from China’s central authorities is expected to further expand the economic recovery from the pandemic, which will immediately lead to increased energy consumption.
While business activity in China is expected to improve, a shift in growth drivers from manufacturing and infrastructure to technology will help contain the explosive growth in demand for crude oil. According to the expert, during the pandemic, Beijing has learned to be careful in the global market and not to allow its domestic policies to negatively impact the global sphere, which could ultimately lead to a decrease in the already weak economic growth. . rates.
The work on errors during the period of the oil supercycle in 2000-2014 was carried out fruitfully by Beijing. At present, only India’s undisguised and “gross” interest in energy resources is causing an instant and serious rise in quotations. China no longer makes the same mistakes as before.
A qualitative improvement in the technological processes of transformation of raw materials, which increase the percentage of production of finished products from oil, makes it possible to slightly increase imports with an increasing return in the form of fuel for final consumers, breaking the direct link long-term relationship between raw material imports and domestic gasoline consumption. With the same success, electric vehicles, other alternative modes of transport and mechanisms on decarbonized fuels are used.
China seeks and finds new engines of economic growth, also very economical for the global system
says Chinese expert Rory Green of consultancy TS Lombard.
In fact, China’s central leadership is banking on opening up the country after the pandemic, while eliminating negative policies on real estate, the consumer sector and geopolitics. Aggressive methods and pressures to increase activity are a thing of the past. The 5% GDP growth projected for this year is achievable with such a relaxed approach. Nevertheless, over the years of closure, China has learned to develop and at the same time save on energy resources, thus preventing their price from rising, the expert concluded.
