How China Is Affecting BP's Bottom Line

<- 分享“投资美国石油俱乐部”微信公众号到您的社交圈,让更多的人知道!

收藏文章 赞一个 已赞 2016-03-29 投资美国石油俱乐部



如果您经常看到我们的信息,就考虑点击上面蓝字投资美国石油俱乐部直接关注呦!

寻:北美地区在产油田收购。要求收购规模1亿美金以上,常规非常规皆可。有一定的在产产量,并有较大的后续开发潜力。项目方的报价需符合行业定价惯例。

 

BP plc (NYSE: BP) has been through a couple of tough years as collapsing energy commodity prices eroded the company’s bottom line. A component of the fall in energy prices was aweakening Chinese economy. China’s economy is instrumental to commodity prices as it is the most populous country in theworld and consumes the majority of many of the world’sraw materials.

 

China's Growth


China accounted for a large percentage of global energy demand growth this millenniumas its seemingly insatiable appetite for raw materials drove up the price of many commodities, including energy commodities, into a super cycle. There was sentiment that this growth trajectory would continue in perpetuity as the country's population moved from a rural to an urban lifestyle. People living ina rural environment consume few raw materials compared to those living an urbanexistence. Cities, with their infrastructure and transportation requirements,create demand for raw materials and energy. This fundamental shift was a driverfor increased energy demand, but when China's economic growth engine cooled,it had a major impact on many commodities,including energy commodities such as oil, gasoline and natural gas.

 

A few factors contributed to the price collapse of many energy commodities,but China’s slowing growth was a component. In 2010,the country’s energy demand growth was 11%. Looking forward, the InternationalEnergy Agency expects China's oil consumption growth will rise by about 2.6% annually through 2040.

 

The Impact on BP

 

BPis involved in many facets of the energy sector including oil, gasoline and natural gas. In 2015, BP posted a net loss of $6.5 billion, the biggest in atleast 30 years. The company attributed the loss to lower energy prices. The company has also acknowledged China's impact. “China really matters for energy,” stated BP's Chief Economist Spencer Dale to analysts and investors in a webcast. Beyond just lower energy prices, China's economic slowdown could impact BP's overall business as the company does a great deal of business with the country.

 

Other Influences

 

BP has billions of dollars invested in China in business lines, including petrochemicals manufacturing and marketing, aviation fuel supply, oil productand lubricant retailing, LNG terminal and pipelines, and chemical technology licensing. At the end of 2015, even as energy prices collapsed, BP announced that it was stepping up its business in China.

 

In mid-2015, estimates put BP's investments in China at around $4.5 billion, but this was before more billion-dollar deals were announced at the end of the year. The deals BP inked with China at the end of 2015 included helping the country decrease its use of coal for generating electricity and increase its use of natural gas. China has set a strict goal to reduce emissions and improve air quality, and this means that it has to reduce its use of coal and turn to cleaner energy sources. Natural gas is an alternative. BP has a framework agreement, and it is partnering with state-owned China National Petroleum Corp. to expand shale gas opportunities in China’s Sichuan Basin. The company also agreed to supply 1 million tons of liquefied natural gas (LNG) per year over 20 years to Huadian, China’s largest gas-fired power generator. According to BP,the LNG portion of the deal alone is worth up to $10 billion.

 

While China’s slowing energy demand will have a fundamental impact on BP’s earnings, there is the potential that new deals will bring morebusiness to the petroleum giant. There is also some concern. If these deals fall through or don’t live up to their potential due toChina’s slowing economy, it could spell disaster for BP’s future.

 

关于我们

投资美国石油俱乐部

全球第一个专注于美国石油天然气行业投资的华人微信公众平台。美国有超过400万平方公里的土地与矿产资源属于私人所有,是世界上最适合中小资本与个人参与原油开采投资的国家。自2006年美国爆发页岩气革命以来,美国的页岩油、致密油产量剧增,目前的原油日产量排名世界第三。预计2020年美国将成为世界上最大的石油出口国。美国原油生产成本大致在20~30美金/每桶之间,每口油井寿命达10年以上,通常直接销售原油带来的现金收入是初始打井投资额的3倍到10倍。本公众号介绍美国石油与天然气开采行业的资讯与动态、分享中国投资人参与投资的机会。如果想了解更多,可以加微信平台管理员的个人微信号teresa13264021820,为您解答更多问题哦。

免责声明:我们发布的转载资讯,对文中陈述、观点保持中立,不对所包含内容的准确性、可靠性或完整性提供任何明示或暗示的保证。请读者仅作参考,并请自行承担全部责任。如有版权问题,请联系我们,我们负责版权保护。

 


点击展开全文