But hey, I'd already told you this wasn't that big a deal. At the time, it looked like China would get about four months' worth of oil from the Jidong Nanpu field. Now, given PetroChina's recoverability estimate (632 million BOE) and the EIA's latest demand forecast for China (7.6 million barrels/day), we're looking at less than three months of supply.
And that's at today's consumption levels. Chinese crude oil demand is growing in excess of 5% annually, and production from the field won't ramp up for years.
Between the Jidong Nanpu hoopla and the announcement of a People's IPO, there was something of a frenzy to grab PetroChina shares. The Oracle of Omaha appears to have taken this as an opportunity to lighten up his position just a tad. In hindsight, this turned out to be the top. Buffett still holds a large stake in the firm, however, and there are plenty of fireworks still to come.
Now that the wind has been let out of the firm's sails a bit, PetroChina's shares are suddenly looking more attractive. Between this company, Petrobras