In Today’s Talking Points: China to Tackle Wasted Energy in New Wind Farm Rules; China’s Energy Development Accelerates Due to Opening-Up and International Cooperation; China and Others Clamouring for Crude Oil Exports While U.S Strains Capacity; Energy Exports to Play Key Role in US-China Trade Talks
China to Tackle Wasted Energy in New Wind Farm Rules
China’s energy regulatory board has ordered local authorities to take heed of the grid capacity when they are selecting new wind power projects, in an effort to ensure that no more than 5% of generated electricity is wasted. Many new solar projects have been left without access to power grids, meaning the electricity generated is wasted and unused. The regulatory board has tried to manage the pace of construction of renewable energy sources in order to give central grids more time to expand capacity, however researchers estimate that 12% of total generated wind power was wasted last year, as well as 6% of solar energy. The regulatory body has said that from 2019 onwards, all large-scale wind power plants will be subject to a competitive bid process, with bids based on construction costs as well as power prices.
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China’s Energy Development Accelerates Due to Opening-Up and International Cooperation
The cooperation between China National Offshore Oil Corporation (CNOOC) and Shell Petrochemical has entered a new stage this month with the opening and start-up of its second ethylene cracker in South China. The project has more than doubled the capacity of the existing petrochemical complex, supporting the 50/50 joint venture between the two companies. The project also offers a demonstration of how international cooperation has driven China’s energy industries and many other sectors, showing how recent efforts to open up industries are benefitting the economy. Since 2012, China has signed more than 100 cooperation agreements with other countries, set up 56 bilateral energy cooperation mechanisms and participated in 29 multilateral ones, which have brought a number of influential projects as well as advancement in energy investment, technologies, equipment, and services.
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China and Others Clamouring for Crude Oil Exports While U.S Strains Capacity
U.S oil exporting infrastructure is straining to keep up with demand as their crude oil exports hit a record high, with China snapping up more oil than ever before. Crude production in the U.S has surged to a record 10.7 million barrels, driven largely by new growth in new projects in Texas, producing excess of 3 million barrels per day. U.S exports peaked at 2.6 million barrels per day two weeks ago, with exports forecast to rise further past the estimated ceiling of 3.5 million – 4 million barrels per day. Researchers are concerned with how quickly crude terminals designed to handle imports can shift to handling exports to keep up with the new demand.
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Energy Exports to Play Key Role in US-China Trade Talks
U.S Treasury Secretary Steven Mnuchin has said that energy will play a major role in a breakthrough in trade talks between the Trump administration and its Chinese counterparts. After China agreed to purchase more US goods, the two sides agreed to put a hold on tariffs against one another. However, oil and gas production is a key aspect of the US economy, while China is hungry for more and more fossil fuels as they continue their rapid economic expansion and there is increased hunger for traditional and renewable energy sources as more drivers take to the roads. The Treasury secretary stated that he believes there’s a big opportunity for the U.S to become a major supplier of energy to China, estimating that the US can get US$ 40 billion worth of exports to China, whereas oil and gas exports were only at US$4.3 billion in 2017. Analysts are worried about the capability of China to produce infrastructure capable of handling more imports of oil.
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