China's record oil output reaches limits of what's possible

China reached a record high in domestic oil production last year after a seven-year campaign driven by aggressive drilling at ageing fields, an offshore boom, and nascent shale oil output. The supply gain could modestly reduce China's import dependence and place downward pressure on global oil markets, making this a sector-level development for energy and commodities players.

Analysis

China reached a record high in domestic oil production last year after a seven-year campaign driven by aggressive drilling at ageing fields, an offshore boom, and nascent shale oil output. The supply gain could modestly reduce China's import dependence and place downward pressure on global oil markets, making this a sector-level development for energy and commodities players.