China's national oil companies are increasingly visible in the Middle East. Here's why:
China is the world’s most populous country and largest energy consumer. It is the second largest economy in the world. From 2001 to 2011, it experienced annual GDP growth of about 10 per cent.
The recent slowdown in the Chinese economy is planned and calculated, as indicated in the government’s 12th Five Year Plan, in the hopes of restructuring the economy, boosting private consumption and relying less on exports. Those are the main Chinese lessons of the recent financial crisis.
Since 2000, China's needs for energy have grown rapidly. Continuous economic growth coupled with structural change in energy consumption before and after the country joined the World Trade Organization in 2001 have been behind this dramatic increase in energy demand.
Also, the change in energy consumption trends has had a huge effect on the country’s environmental records. According to the US energy information administration, from 1980 to 2002 China was responsible for about 28 per cent of the net growth in the world’s carbon emission. However, the country accounted for more than 50 per cent of the growth in emission from 2002 to 2005.
The recent shift in the country’s energy consumption has been a result of two main changes in the economic structure. The two changes were in the way the Chinese government kept up the country’s GDP growth. According to some economists, investment went up exponentially after 2002 and surpassed private consumption to become the largest slice of China’s GDP pie in 2004.
Investment, especially in energy-intensive fixed assets, reached about 44 per cent of real GDP by 2008.
The second change was in the share of net exports, which leapt from about 2 per cent of GDP in 2002 to around 8 per cent in 2008.
Essentially, Chinese economic growth since 2002 has been sustained by this growth in investment and net exports.
Looking forward, McKinsey Global Institute expects that some 350 million people will be added to the urban population in the next decade. That will present a new set of challenges ranging from availability of social services to availability of energy supply.
In terms of energy consumption, there is a huge difference between urban lifestyle and that of the suburbs; urban living is more energy-intensive. Those living in cities are more likely to use cars, trains, washing machines, fridges, TV, lights, heaters/air conditioners and many other devices that consume energy. This trend makes it imperative for the government to invest heavily in the energy industry. The widening gap between energy consumption and production makes this investment an even more urgent matter.
According to BP, China's gap between gas production and consumption was about 2 per cent in 2007, but had jumped to around 22 per cent by 2011. Gas consumption represents 4 per cent of the total primary energy consumption, but its share is expected to increase to 8 per cent by 2015, as predicted by the International Energy Agency (IEA). This is normal when considering the country's aim to reduce its carbon emission intensity rate by 17 per cent by 2015 – gas emits half the carbon dioxide of coal.
Similarly, the gap between crude oil production and consumption was 4 million barrels per day (bpd) in 2007, but grew to 5.7 million bpd in 2011. The country’s oil reserves-to-production ratio is 10, indicating that at the current production rate and with no major future reserves expansion, the country has only 10 years before it runs out of oil.
Many factors influence China’s energy strategy, but the one that keeps the decision-makers awake at night is the country’s insatiable thirst for oil, about 60 per cent of which is imported. More critically, according to the IEA, the country is expected to import 77 per cent of its oil requirements by 2020.
With expected GDP growth of at least 7.5 per cent a year, little expansion opportunity in domestic oil production (a great deal of which comes from ageing fields) and challenges in reducing energy intensity, the gap between oil production and consumption is expected to increase for years, if not decades, to come.
The statement of Zhang Guobao, former head of the country’s National Energy Administration, succinctly and clearly describes China’s situation: “Oil security is the most important part of achieving energy security ... preparations for alternative energies should be made as soon as possible.”
Ebrahim Hashem is a senior adviser in business strategy and corporate governance at an Abu Dhabi-based company.
Company%20profile
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COMPANY%20PROFILE
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The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
Company%20Profile
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
The specs: 2019 Mercedes-Benz GLE
Price, base / as tested Dh274,000 (estimate)
Engine 3.0-litre inline six-cylinder
Gearbox Nine-speed automatic
Power 245hp @ 4,200rpm
Torque 500Nm @ 1,600rpm
Fuel economy, combined 6.4L / 100km
SPECS
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Hydrogen: Market potential
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.
"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.
Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.
The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.
Cherry
Directed by: Joe and Anthony Russo
Starring: Tom Holland, Ciara Bravo
1/5
The Orwell Prize for Political Writing
Twelve books were longlisted for The Orwell Prize for Political Writing. The non-fiction works cover various themes from education, gender bias, and the environment to surveillance and political power. Some of the books that made it to the non-fiction longlist include:
- Appeasing Hitler: Chamberlain, Churchill and the Road to War by Tim Bouverie
- Some Kids I Taught and What They Taught Me by Kate Clanchy
- Invisible Women: Exposing Data Bias in a World Designed for Men by Caroline Criado Perez
- Follow Me, Akhi: The Online World of British Muslims by Hussein Kesvani
- Guest House for Young Widows: Among the Women of ISIS by Azadeh Moaveni
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
21 Lessons for the 21st Century
Yuval Noah Harari, Jonathan Cape
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
MATCH INFO
Newcastle United 3
Gayle (23'), Perez (59', 63')
Chelsea 0
Killing of Qassem Suleimani
Killing of Qassem Suleimani
More Expo 2020 Dubai pavilions:
PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners
Keane on …
Liverpool’s Uefa Champions League bid: “They’re great. With the attacking force they have, for me, they’re certainly one of the favourites. You look at the teams left in it - they’re capable of scoring against anybody at any given time. Defensively they’ve been good, so I don’t see any reason why they couldn’t go on and win it.”
Mohamed Salah’s debut campaign at Anfield: “Unbelievable. He’s been phenomenal. You can name the front three, but for him on a personal level, he’s been unreal. He’s been great to watch and hopefully he can continue now until the end of the season - which I’m sure he will, because he’s been in fine form. He’s been incredible this season.”
Zlatan Ibrahimovic’s instant impact at former club LA Galaxy: “Brilliant. It’s been a great start for him and for the club. They were crying out for another big name there. They were lacking that, for the prestige of LA Galaxy. And now they have one of the finest stars. I hope they can go win something this year.”
EMERGENCY PHONE NUMBERS
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
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Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
The specs: 2018 Mitsubishi Eclipse Cross
Price, base / as tested: Dh101,140 / Dh113,800
Engine: Turbocharged 1.5-litre four-cylinder
Power: 148hp @ 5,500rpm
Torque: 250Nm @ 2,000rpm
Transmission: Eight-speed CVT
Fuel consumption, combined: 7.0L / 100km
Brief scoreline:
Liverpool 5
Keita 1', Mane 23', 66', Salah 45' 1, 83'
Huddersfield 0
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
Racecard
6pm: The Pointe - Conditions (TB) Dh82,500 (Turf) 1,400m
6.35pm: Palm West Beach - Maiden (TB) Dh82,500 (T) 1,800m
7.10pm: The View at the Palm - Handicap (TB) Dh85,000 (Dirt) 1,400m
7.45pm: Nakeel Graduate Stakes - Conditions (TB) Dh100,000 (T) 1,600m
8.20pm: Club Vista Mare - Handicap (TB) Dh95,000 (D) 1,900m
8.55pm: The Palm Fountain - Handicap (TB) Dh95,000 (D) 1,200m
9.30pm: The Palm Tower - Handicap (TB) Dh87,500 (T) 1,600m
The years Ramadan fell in May
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The Year Earth Changed
Directed by:Tom Beard
Narrated by: Sir David Attenborough
Stars: 4
