China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.
Asian energy companies look set to catch up to their peers with investments in U.S. unconventional oil production, the area which has dominated global energy merger and acquisition activity over the last 12 months.
Falling oil production in Asia is forecast to accelerate as major fields dry up, which will stiffen demand for foreign barrels and help absorb the global glut. But Asia will be increasingly vulnerable to sudden price spikes as its reliance on imports climbs.
Global LNG players are pessimistic in the face of a glutted global LNG market and oil prices that are steadfastly refusing to rise.
China’s crude oil imports will remain strong through 2016 and 2017, as Beijing continues to fill its Strategic Petroleum Reserve (SPR) and domestic production falls sharply, helping rebalance the global oil markets.
For years, the world’s biggest liquefied natural gas sellers boasted at industry gatherings about the endless potential for demand growth in Asia. Until recently, LNG’s relatively high price and the commodity’s inflexible trade have been its undoing.