If there was any question about how quickly the Chinese think their economy will grow this year, the production targets for Cnooc, its largest off shore oil and gas exploration company, answer them.
Cnooc plans to increase production by 28% according to Bloomberg. “That’s a staggering production forecast after a stand-out 2009,” David Hewitt, an energy analyst at CLSA Asia Pacific Markets said the news service reported.
The forecast says a great deal about the likely trajectory of China’s manufacturing and transportation industries for the balance of the year. But, it is also a reasonable guide to oil demand, which so far analysts have expected will be modest this year.
The predictions of $70 to $80 a barrel of crude this year are usually based on moderate industrial growth in the developing world and tiny improvements in the older developed nations. China’s internal growth forecasts must be better than most experts expect.
Douglas A. McIntyre
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