China Headed for Peak in Gasoline and Diesel Consumption: Sinopec Projections
Published By : 01 Apr 2015 | Published By : QYRESEARCH
According to projections made by China Petroleum and Chemical Corp., it looks like China is headed in the direction of its peak consumption of gasoline and diesel, much earlier than what analysts and energy companies in the West have predicted.
If these projections made by the country’s largest oil refiner Sinopec, which is a state controlled company with public shareholders out of Hong Kong, holds true, then it could pose a serious threat to some of the largest oil companies around the world. These oil companies have been banking on China as well as other developing economies to keep their businesses flourishing since the consumption of energy in developed and more advanced countries falls more.
According to a analyst Mark C Lewis from Kepler Cheuvreux in Paris, people around the world have all been talking endlessly about the peak in Chinese coal. However, not many people discuss the peak in demand for Chinese diesel. Mark Lewis, who has about the need for oil companies to expand their activities in order to produce every kind of energy, states that this lack of discussion on Chinese diesel demand is shocking.
China Petroleum and Chemical Corp., or Sinopec has presented a perspective of the country which will help as a reality check for any and all oil bull. In the case of diesel, the peak in Chinese demand is merely a couple of years away. Diesel has been identified as the fuel that has the ability to track economic growth most closely. Chairman of Sinopec Fu Chengyu stated that this peak in the country will be reached in 2017. Fu Chengyu has given his perspective on a conference call earlier last month which was not reported in depth.