The Asia-Pacific surpassed North America as the world's primary oil consuming region in 2007
Research and Markets has announced the addition of the "Asia-Pacific Oil & Gas Sectors : A Company and Industry Analysis (August 2008)" report to their offering.
This report updates the previous Asia-Pacific oil and gas report, focusing on the markets in Australia, China, India, Indonesia, Japan and South Korea.
Current Environment - Key Points:
- Crude oil prices rose 66% from a year ago to US$134.74 a barrel (US$/bbl) on June 20, 2008, amid a tight supply background and continued market speculation and concerns over conflict in the Middle East
- The share prices of leading oil and gas companies in the Asia-Pacific performed bearishly over the past six months to June 20, 2008, down by 23.73% from a year ago on profit taking
- State-owned Oil India which was due to go public in the first half of 2008 postponed its IPO to August-September amid concerns over the bear market and the increasingly volatility of oil prices
- Joint ventures overtook acquisition deals as oil and gas companies remained under constant pressure to explore new frontiers and increase refining capacity while keeping operational costs under control
Industry Profile - Key Points:
- The Asia-Pacific surpassed North America as the world's primary oil consuming region in 2007, accounting for about 30% of the global share, figures from BP Statistical World Energy Review 2008 show
- The Asia-Pacific proved oil and natural gas reserves were 40.8 billion barrels (BBL) and 510.69 trillion cubic feet (Tcf) respectively at the end of 2007
Although sizeable, these reserves are still smaller than those in the Middle East, Russia and Africa
- The region's oil production in 2007 grew marginally by 0.3% to 7.907 million barrels a day (MMbbl/d), due to declining production in Brunei and Indonesia
Separately, Asia-Pacific natural gas output rose by 4.8% to 13.82 Tcf, thanks to rising output in China and Vietnam
- Governments in the Asia-Pacific continue to offer exploration licenses to boost domestic oil and gas production, with pre-production drilling areas becoming the industry favorites
- South Korea and Japan plan to work with the US for commercial production of methane hydrates, a potential unconventional gas resource found mainly in the US, China, India, Japan and South Korea
Market Trends and Outlook - Key Points:
- The International Energy Agency (IEA) anticipates world oil demand growth will rise by only 800,000 barrels a day (bbl/d) after Asian economies rolled back oil subsidies in the 2008 first half to curb domestic consumption
- Government controls over petroleum product prices in China and India continue to stifle national oil refiners- expansion plans
By 2010, Asia is expected to see up to 30.955 MMbbl/d, up 45.5% from 2003 and require greater refining capacity
- Prospects are bright for the Australian liquefied natural gas (LNG) sector which is seeing an increasing number of gas liquefaction projects in the pipeline
Between 2008 and 2017, there are set to be some 17 LNG projects planned for development with up to 80 million tons (MT) of annual capacity
- The IEA estimates Asia-Pacific oil demand will reach 38.3 MMbbl/d in 2008, driven by continued strong demand from China and India
For 2008, the IEA forecasts China's oil demand will rise by 6.7% buoyed by a 12.5% and 10% increases in gasoline and diesel demands.