China’s Upstream Oil Profits Undercut By Worries on Refining
- Slowing economy and decarbonization goals are concerns
- Flat Chinese demand could sink international crude prices
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China’s top oil and gas companies are getting outsized profits from drilling fossil fuels, but it’s a different story when it comes to processing their haul and selling it.
Stronger international crude prices and rising output drove big gains in net income at PetroChina Co. and Cnooc Ltd. this week, as well as brightening earnings at Sinopec, a firm that relies more heavily on its downstream operations for profit. It shows that the big three are reaping the rewards of Beijing’s insistence they cut the nation’s import bill by producing more of their own oil and gas.