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Page added on March 31, 2012
Chinese Firm Surpasses Exxon in Oil Production
A big shift is happening in Big Oil: An American giant now ranks behind a Chinese upstart.
Exxon Mobil is no longer the world’s biggest publicly traded producer of oil. For the first time, that distinction belongs to a 13-year-old Chinese company called Petro-China. The Beijing company was created by the Chinese government to secure more oil for that nation’s booming economy.
PetroChina announced Thursday that it pumped 2.4 million barrels a day last year, surpassing Exxon by 100,000. The company has grown rapidly over the last decade by squeezing more from China’s aging oil fields and outspending Western companies to acquire more petroleum reserves in places like Canada, Iraq and Qatar. It’s motivated by a need to lock up as much oil as possible.
The company’s output increased 3.3 percent in 2011 while Exxon’s fell 5 percent. Exxon’s oil production also fell behind Rosneft, the Russian energy company.
PetroChina’s rise highlights a fundamental difference in how the largest petroleum companies plan to supply the world as new deposits become tougher to find and more expensive to produce.
Every major oil company has aggressively pursued new finds to replace their current wells. But analysts say Western oil firms like Exxon Mobil have been more conservative than the Chinese, mindful of their bottom line and investor returns. With oil prices up 19 percent in 2011, they still made money without increasing production.
PetroChina Co. Ltd. has a di~erent mission. The Chinese government owns 86 percent of its stock and the nation uses nearly every drop of oil PetroChina pumps. Its appetite for gasoline and other petroleum products is projected to double between 2010 and 2035.
“There’s a lot of anxiety in China about the energy question,” says energy historian Dan Yergin. “It’s just growing so fast.”
While PetroChina sits atop other publicly traded companies in oil production, it falls well short of national oil companies like Saudi Aramco, which produces nearly 8 million barrels a day. And Exxon is still the biggest publicly traded energy company when counting combined output of oil and natural gas. PetroChina ranks third behind Exxon and BP in total output of oil and natural gas.
PetroChina is looking to build on its momentum in 2012.
“We must push ahead,” PetroChina chairman Jiang Jiemin said in January.
PetroChina has grown by pumping everything it can from reserves in China, estimated to contain more than 6.5 billion barrels. It drilled thousands of oil wells across vast stretches of the nation’s northern grasslands. Some of those fields are ancient by industry standards, dating close to the beginning of China’s communist government in the 1950s.
The commitment to aging fields distinguishes PetroChina from its biggest Western rivals. Exxon and other major oil companies typically sell their aging, lowperforming fields, or they put them out of commission.
PetroChina also has been on a buying spree, acquiring new reserves in Iraq, Australia, Africa, Qatar and Canada. Since 2010, its acquisitions have totaled $7 billion, about twice as much as Exxon, according to data provider Dealogic.
9 Comments on "Chinese Firm Surpasses Exxon in Oil Production"
SOS on Sat, 31st Mar 2012 12:36 pm
The Chinese know how to do it. Americans, under curent ledership, are losing out. I dont know why flat earthers like our president are anxious to see all of us in poverty with much higher energy costs than need be and debts we cant pay. We now have enough recoverable reserves due to new tchnologies to supply us with abundent cheap energy. Royalties from the federal lands could easily pay the national debt, fund social security and balance the budget. At the same time taxes would stay low as would our personal energy costs. Please dont be a flat earther when it comes to new technologies, you are only working against your own well being.
BillT on Sat, 31st Mar 2012 12:37 pm
It appears that the West is sliding farther and farther down the slippery slope. China does not have to answer to stock holders or greedy CEOs. It only has to get more and more into reserves before the world falls apart, which it is doing by leaps and bounds. Oil, copper, rare earths, aluminum, etc. Their stockpiles are growing while we squander our resources to power and feed a bloated military / security machine.
BillT on Sat, 31st Mar 2012 12:41 pm
SOS..you are still dreaming. The 1% want us to be in poverty. Slaves are much easier to manage than a middle class. And, ‘recoverable reserves’ may be enough, if we accessed all that were possible, to power the Us for about 3-4 years then all of our reserves would be gone. The Us blew our load for quick profits and to fuel a nation of cars for the auto industry. Our time is over.
SOS on Sat, 31st Mar 2012 5:36 pm
LOL. Flat earthers are keeping energy prices high. As our president said, you sound like the guy who said the telephone had no uses, the computer was a toy, the earth is flat.
Kenz300 on Sat, 31st Mar 2012 8:36 pm
Rising demand from China and India is outpacing the world supply of oil. The price of oil is going up and the oil companies say thank you. It is time to end the oil monopoly on transportation fuels.
Bring on the electric, flex-fuel, hybrid, CNG, LNG and hydrogen fueled vehicles.
MrEnergyCzar on Sat, 31st Mar 2012 10:17 pm
Everyone is fighting for a smaller and smaller slice of the cheap oil pie… China’s been making deals around the world…
MrEnergyCzar
BillT on Sun, 1st Apr 2012 2:01 am
SOS, the world you live in is not the real one. And Kenz is also dreaming. But, soon, it will be obvious to all that we are in permanent decline. If you think China is a police state, you have not opened your eyes to what has happened in the Us in the last few months.
pete on Sun, 1st Apr 2012 2:01 am
the optics of SOS must be screwed. maybe a little bucket of cold water might open his eyes. lets look at social security. All T Bills, national debt just surpassed GDP.
next little surprise, if you search: 75 Trillion Bank of America Bloomberg You will find that the big 5 banks in US have transferred almost 250 trillion in derivatives from their financial arms over to FDIC arms.
next try this http://thomas.loc.gov/cgi~bin/query/Z?C109:s.256:
the senate library download the pdf version and go to page 157 section 561 and start reading and it talks about how derivative holders get payed first as long as they can prove that they tried to insure them, it also allows the banks to reach right into your accounts too pay them. Greece defaulted causing a CDS derivative payout of ??? why unknown because there is no records of OTC derivatives see: PBS Frontline “The Warning”
shadowstats.com
thedailybail.com
search: Dylan Ratigan MSNBC
search: Matt Tabbi Rolling Stone mag.
search: MERS 56 million homes NO TITLES
search: glass steagall act picora investigation
sorry the bucket turned into a downpour.
BillT on Sun, 1st Apr 2012 7:42 am
Read this 2 part article on how one state can take money out of your account without your knowledge and your bank also takes a fee out for doing it.
http://charleshughsmith.blogspot.com/2012/03/welcome-to-predatory-state-of.html
The American people have no idea how they are being lined up for the slaughter…