China's Oil Demand to Witness 5-6 Percent Annual Growth from 2011-2015

Strategic Insights -

China's oil demand is poised for significant growth over the next several years, with Cai Xiyou, vice president of China Petroleum and Chemical Corporation (Sinopec), predicting a 5-6 percent annual increase in demand from 2011 to 2015. According to Cai, China's product oil demand will reach 286 million metric tons by 2015, and 336 million metric tons by 2020. This growth is expected to be driven by a combination of increasing domestic demand and oil imports, with Sinopec, China's largest oil refiner, playing a key role in meeting this demand.

Key Takeaways:

  • China's oil demand is predicted to grow at an annual rate of 5-6 percent from 2011 to 2015, according to Cai Xiyou, vice president of Sinopec.
  • China's product oil demand is expected to reach 286 million metric tons in 2015 and 336 million metric tons in 2020.
  • By 2020, approximately 60 percent of China's oil demand will need to be met through oil imports.
  • Sinopec, China's largest oil refiner, saw its crude oil throughput increase by 14.41 percent year-over-year in the first three quarters of 2010, reaching 153.76 million tonnes.
  • Domestic product oil sales also increased, up 16.5 percent over the same period in 2009, reaching 104.35 million tonnes.
  • Cai Xiyou attributed the growth in oil demand to increasing domestic consumption and expanding oil imports.

Statistics:

  • 5-6 percent: predicted annual growth rate of China's oil demand from 2011 to 2015 (Source: China Daily)
  • 286 million metric tons: expected China's product oil demand in 2015 (Source: Cai Xiyou)
  • 336 million metric tons: expected China's product oil demand in 2020 (Source: Cai Xiyou)
  • 14.41 percent: year-over-year increase in Sinopec's crude oil throughput in the first three quarters of 2010 (Source: Xinhua)
  • 16.5 percent: year-over-year increase in Sinopec's domestic product oil sales in the first three quarters of 2010 (Source: Xinhua)
  • 60 percent: expected proportion of China's oil demand to be met through oil imports by 2020 (Source: Cai Xiyou)

Sources:

  • Cai Xiyou, vice president of China Petroleum and Chemical Corporation (Sinopec), as quoted in China Daily on Tuesday.
  • Xinhua News Agency, "China's oil demand to witness 5-6 percent annual growth during 2011-2015," November 30, 2010.
  • Comtex SmarTrend Alert, "DOWNTREND on 11-16-2010 for SNP @ $94.58," November 26, 2010.