Before and after the New Year, Chinese companies’ overseas oil-finding activities frequently took place. Sinopec, CNOOC, and CITIC Group all made great efforts to take advantage of the situation in the international market. Compared with the rapid increase in energy demand brought about by China’s rapid economic development, the actions of these companies are praiseworthy.
In addition to affirming the actions of Chinese companies seeking oil overseas, it is necessary to remind related companies and related departments to look for oil overseas. It is a good thing, but it must be stable. Because looking for oil overseas is a high-risk strategic move. The success is naturally happy. In case of setbacks, the loss is huge.
First of all, there are political risks in finding oil overseas. International relations are changing and this political risk is increasingly difficult to grasp. The cooperation between CNOOC and Iran has been criticized by members of the United States Congress; the cooperation of CITIC in Kazakhstan has also been strongly blocked by the relevant departments of the host country.
Second, there are financial risks in finding oil overseas. The energy industry is a high-input, high-risk industry. A random field and a gas field are huge numbers of investments and purchase amounts. Before making a decision, decision-makers should make a full assessment of the corresponding financial risks, otherwise it will be difficult to deal with once problems arise. In this regard, Chinese companies already have a lesson from.
Again, there are other risks, including personal safety, for overseas oil searches. Although there are no financial risks in some of the energy producing areas, these places either have their own natural environment, or the social conditions in the region are complex and the public security is not good. This has brought great personal safety risks to overseas workers of Chinese companies. This cannot be prevented.
On the one hand, it is an urgent need for China’s economic development. On the other hand, it is a high risk of going overseas. This requires relevant companies and relevant government departments to establish a smooth channel for information exchange and a close research and consultation mechanism, as well as a comprehensive special case response plan. To ensure that the overseas energy strategies of Chinese enterprises are well-established, stable, and long-standing, this will provide China with a long-term, stable driving force for economic development.
In addition to affirming the actions of Chinese companies seeking oil overseas, it is necessary to remind related companies and related departments to look for oil overseas. It is a good thing, but it must be stable. Because looking for oil overseas is a high-risk strategic move. The success is naturally happy. In case of setbacks, the loss is huge.
First of all, there are political risks in finding oil overseas. International relations are changing and this political risk is increasingly difficult to grasp. The cooperation between CNOOC and Iran has been criticized by members of the United States Congress; the cooperation of CITIC in Kazakhstan has also been strongly blocked by the relevant departments of the host country.
Second, there are financial risks in finding oil overseas. The energy industry is a high-input, high-risk industry. A random field and a gas field are huge numbers of investments and purchase amounts. Before making a decision, decision-makers should make a full assessment of the corresponding financial risks, otherwise it will be difficult to deal with once problems arise. In this regard, Chinese companies already have a lesson from.
Again, there are other risks, including personal safety, for overseas oil searches. Although there are no financial risks in some of the energy producing areas, these places either have their own natural environment, or the social conditions in the region are complex and the public security is not good. This has brought great personal safety risks to overseas workers of Chinese companies. This cannot be prevented.
On the one hand, it is an urgent need for China’s economic development. On the other hand, it is a high risk of going overseas. This requires relevant companies and relevant government departments to establish a smooth channel for information exchange and a close research and consultation mechanism, as well as a comprehensive special case response plan. To ensure that the overseas energy strategies of Chinese enterprises are well-established, stable, and long-standing, this will provide China with a long-term, stable driving force for economic development.