China’s State Oil Companies Strategically Prepare for Energy Crisis

China’s state-owned oil companies, including Sinopec, PetroChina, and CNOOC, have made significant investments in domestic oil and gas production to enhance energy security. These investments, totaling around $343 billion since 2018, have not only increased China’s domestic crude production but also boosted natural gas production, reducing the country’s reliance on imported energy sources. Despite the benefits, the push for domestic production has come at a cost. Many Chinese oilfields require expensive extraction methods, leading to higher breakeven costs compared to US shale production. Some fields have even operated at a loss to maintain production levels. To safeguard domestic fuel supplies,…