China Places Double Pressure on Producers

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Chinese national oil companies are increasingly facing a double whammy of having to increase oil and gas supply on the one hand, and simultaneously speeding up decarbonization efforts on the other. And Beijing wants an immediate response, judging from a recently released 2023-25 action plan from the National Energy Administration (NEA) for “accelerating the integration” of upstream oil/gas operations with renewable energy in the next three years. At the same time as “stabilizing oil production and increasing gas output,” it is also “imperative” to speed up the green and low-carbon transition, says the NEA. In a nutshell, NOCs like PetroChina, Sinopec and offshore producer CNOOC must show more results in the next three years to satisfy the NEA that they are making headways in developing “new energy sources, new products and new businesses.” They must, says the NEA, “strive hard” to attain “low-carbon or zero-carbon” operations in their oil and gas fields through “integrated, large-scale” deployment of renewable energy with E&P activities.

Renewable Electricity , CO2 Emissions, Low-Carbon Policy, Upstream Technology, Corporate Strategy
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