Analysis of market and arrangement of production Essay

Analysis of market and arrangement of production - Essay Example ated that the oil and gas liquid output will remain no more than 3.54 mn b/d by the year 2011 though the country has pumped about 3.67 mn b/d last year. Oil consumption in China is expected to increase by 28% by 2011. Therefore the import of oil is expected to be 5.85 mn b/d by 2011. The overall business environment for oil and gas is moderately attractive from a regional perspective because political risk is overwhelmed by a strong and sustaining growth of demand for energy. There is a positive reserve for international oil and gas companies to take part in this competitive market. Economic risk is moderate and regulatory norms are set to make progress. China is an important nation in Asia for long, medium and short term oil and gas growth and demand that attracts energy sector investors (The China Oil and Gas Report 2008.) The Chinese oil and gas market conducts activities of storage, refining, exploration, production, transportation, development and marketing (King,2008). With augmented force for bigger oil manufacture and new basis of energy, opportunities to spend in oil and gas business are growing. Unearthing of new sources of oil and gas as well as persons eager to put their cash on the line is imperative to the oil and gas industry. Oil companies are in want of financiers to fund research, for the growth of new technologies, and the hunt of new sources (Richards) China is now a net importer of oil. It consumes nearly five million barrels of oil per day. Out of this requirement, one third is imported. It is expected that China will consume seven million barrels per day by the year 2020. in view of the above mentioned forecasts government sponsored groups have started functioning for devising objectives in this area. One of the main plans formulated is in the area of marketing oil and gas products (PETROCHEMICALS, CHEMICALS, OIL & GAS INDUSTRYWORKING GROUP.) The pricing device has been correspondingly continuing towards semi liberalised bazaar value