The demand for oil in China is likely to peak in the next ten years or may be as close as 2017. The chairman of Sinopec, Fu Chengyu predicted in a recent conference call.
Sinopec is the country’s largest oil processing company. The company said, it is getting geared for the future when retailing oil is no longer the core business of the company. Sinopec, the country’s largest oil processing company has 23,000 retail outlets and 30,000 petrol stations around the country.
Sinopec, the largest oil producing company in China has contrary prediction forecasts compared to Western oil majors such as BP and ExxonMobil. Sinopec believes China will continue to have demand for oil despites slowdown of the western markets.
The data from last year shows consumption for diesel dropped in the last year. Based on the data the forecast for oil demand could be as low as three percent which is only 50% of the country’s GDP growth.
Sinopec chairman also said it is predicted in future oil and gas companies will be major supplier of energy. Sinopec’s chairman also said but oil and gas companies would not be the only source of energy supply. Sinopec’s chairman also said new energy sources and renewable sources of energy will be more important in coming years. Sinopec’s chairman Fu Chengyu further added, it is quite likely oil business may remain the core business of the company in years to come.