Oil markets are on the rise as US companies look for ways to tap the booming domestic oil market, but the oil giant PetroChina is stepping up its game as the industry’s benchmark in Asia.
The global oil benchmark PetroChina’s shares have jumped about 5% this year to a record $2.8 billion, but analysts say the company’s performance may have been boosted by a “soothing” oil price.
The company, which was founded in 1971 and now has an annual sales of $4.7 billion, said in a statement on Monday it was looking for ways for its business to continue its expansion.
The market rally is unlikely to be short-lived, as oil prices are still near record lows and global demand is expected to grow.
A new oil supply deal between the United States and China, as well as a new US-China free trade deal that is expected in January, may boost PetroChina and boost its share price, but it is also a boon for the global oil industry.
PetroChina said it had “significant” demand growth in China and its operations in the Middle East, and the company is aiming to produce enough oil for about 60,000 metric tons of consumption this year, up from a current average of just under 35,000 tons.
Its growth is expected as demand in Asia grows, and PetroChina said the region’s oil demand is forecast to grow by 25% to 50% by 2020.
It also said it has a new pipeline in place that will deliver 2.8 million barrels per day of oil from the US Gulf Coast to China by the end of 2021.
Oil producers in the US, however, are likely to see their production grow as US crude oil prices rise and they can buy more US crude from overseas.
Petrol has also been the industry benchmark for the past few years, but this year has seen a sharp rise in supply.
US crude production rose 1.3% to a new record high of 2.2 million barrels a day in September, while the global market was up 1.7%.
Petro China said its share of global crude oil production has grown from 5% in 2017 to a current share of 18% in 2018, while global oil output rose by 1.2% in the same period.
“It’s the strongest share in the world, and it’s really not going to change,” said Charles Grant, chief market analyst at energy research firm Wood Mackenzie.
“That’s because of the way the world is moving, which is the US is really going to dominate for a while to come.”
The US is a very important market for oil, but there’s no reason that they shouldn’t stay in that position.
“In 2018, PetroChina plans to increase its output by 5.3 million barrels of crude oil a day to reach 2.6 million barrels in 2019, while in 2020, it will increase output by 6 million barrels to reach 3.2.
That means that if it keeps up the momentum, it should reach 4.5 million barrels by 2020, up almost 10 million barrels since 2017.
The firm has also said its pipeline is expected by the middle of this year and its planned expansion of its refinery capacity by 5 million barrels annually to 3.6 billion barrels.
It is also expanding its refinery in Japan to increase capacity to 1.9 billion barrels annually.
Petros oil refinery in Tokyo is seen in this undated handout photo provided by PetroChina.
ReutersOil prices have been on a tear since the start of the year, hitting an all-time high of $102 a barrel in early September.
But analysts say they are likely only to continue climbing as the world economy slows.”
This will be a very long and very painful recovery for the oil market,” said Jefferies analyst Michael Ries.”
We’re not looking at this as a short-term recovery.
We’re looking at it as a long-term one.