China Reforming Energy Sector

China is expected to raise retail natural gas prices and may also allow investment from private companies in the energy sector.

Mar 24, 2014 at 10:10AM

This article was written by Oilprice.com -- the leading provider of energy news in the world. Also check out this recent article:

President Xi Jinping is leading an effort to reform China's energy sector, which has long been under the strict purview of state-owned enterprises. China is expected to raise retail natural gas prices and may also allow investment from private companies in the energy sector.

This will work to the benefit of PetroChina, China's largest oil producer. It is expected to reduce capital spending and invite private investment as part of the government's reform. For 2014, it has set capital spending at $47.7 billion, a cut by 7.1% from last year, and Chairman Zhou Jiping stated that it will maintain that level of investment for the next couple of years.

"One of the reasons we can keep the spending at this level is that we will invite social and private investors to join our oil and gas projects in China," Zhou said, according to Bloomberg News. "We're trying to achieve high-quality growth under this mixed-shareholding model."

China also hopes to overhaul its energy pricing structure. For years, prices for natural gas, for example, have been held artificially low for consumers. This reduced revenues to state-owned enterprises, discouraged production, and led to the inefficient use of energy. It is expected to raise the price of gas sold to industry by 15% by July of this year. This will increase PetroChina's profit by 20 billion Yuan annually.

By relying more heavily on market forces, the Chinese government hopes to boost oil and gas production. Gas pricing reforms may also increase incentives to unlock China's large shale gas reserves. For 2014, PetroChina is aiming to boost its production from 1.4 billion barrels of oil equivalent to 1.44 billion boe.

China is beginning to feel greater urgency to reduce its oil dependency, and market forces could help a bit. It already imports 60% of its oil from abroad. By 2020, its oil import bill could reach $500 billion per year.

No more 'Made-In-China'?
For the first time since the early days of this country, we're in a position to dominate the global manufacturing landscape thanks to a single, revolutionary technology: 3D printing. Although this sounds like something out of a science fiction novel, the success of 3D printing is already a foregone conclusion to many manufacturers around the world. The trick now is to identify the companies -- and thereby the stocks -- that will prevail in the battle for market share. To see the three companies that are currently positioned to do so, simply download our invaluable free report on the topic by clicking here now.

 

Written by Joao Peixe at Oilprice.com.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers