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Energy ties bind the nations, say Aramco
(China Daily)
Updated: 2009-09-23 08:23 Petroleum is not only one of the biggest industries in the world, it is also an indispensable part of virtually every economic sector on the planet. From fuel for cars, trucks, planes and ships, to vital energy for industry and manufacturing, and even as part of the basic building blocks of plastics, pharmaceuticals and fertilizers, nearly every aspect of modern life depends in some way on oil. In the world of petroleum, one of the most significant developments in recent decades has been the steadily growing relationship between China and Saudi Arabia. As the Kingdom's national petroleum company, Saudi Aramco is at the forefront of that relationship. The company and its affiliates believe they are privileged to work not just with the Chinese hydrocarbon sector, but also with a wide range of other bodies throughout China. As Saudi Arabia celebrates its National Day and China prepares to mark the sixtieth anniversary of the establishment of the People's Republic, there is real opportunity to take stock of the energy ties that bind the two nations together.
The firm foundation of that relationship remains the reliable supply of crude oil that Saudi Aramco provides to the Chinese market. At the moment, roughly 750,000 barrels of Saudi crude oil are dispatched to Chinese shores every day, helping to meet a substantial share of China's overall fuel requirements. Over the next few years, that figure is set to double to a million-and-a-half barrels per day, and the energy supply relationship between the two countries will become even more important. Over the next 20 years, some 40 percent of all new crude oil demand will come from China, as the nation's economy continues to develop. Saudi Aramco believes it is ready to meet that growing need and, earlier this year, commissioned the largest crude oil development project in the history of the industry. The project, the Khurais project, will have a 1.2 million barrel-per-day of crude oil production capacity, exceeding that of the entire State of Texas. This new initiative brought Saudi Aramco's maximum sustained capacity to 12 million barrels per day. These are barrels which the world will need in the years to come, as the global economy recovers and the worldwide demand for petroleum grows. The country's relationship with China goes well beyond crude oil, however, as Saudi Aramco is also now a partner with the Chinese petrol giant Sinopec in three joint ventures. Two of these, the Fujian Refining and Petrochemical Company Ltd and the Sinopec SenMei Petroleum Company Ltd, are helping to boost the ongoing development of the Fujian province. The third joint venture, Sino Saudi Gas Ltd, is currently engaged in the search for natural gas deep beneath the sands of the Kingdom's Empty Quarter. While all of these joint ventures employ sophisticated tools and advanced technology, Saudi Aramco also recognizes that dedicated people and their skillset constitute the company's true key to continued success. Saudi Aramco has always placed a premium on human resource development, and maintains one of the largest corporate training programs in the world. One important element in those efforts is the company's sponsorship program, which allows some of the best and brightest young people in the Kingdom to study in Chinese universities. When they graduate, the company believes, they have not only earned their degree but also established a deeper understanding of China, its society and economy, as well as its language and traditions and, above all, its people. Many of these Saudi Aramco-sponsored graduates are now hard at work back in Saudi Arabia, while others have now returned to China to work in one of Saudi Aramco's affiliate offices in Beijing, Shanghai, Hong Kong or in the Fujian joint ventures. Wherever their career takes them, though, they can share their unique perspectives on China with their colleagues and further strengthen the relationship Saudi Aramco enjoys with China. The educational aspect of the bilateral relationship is not limited to these students. Earlier this year, Saudi Aramco signed a series of agreements covering cooperation in both research and academic fields with prominent Chinese universities, including the Hong Kong University of Science and Technology (HKUST), Xiamen University, and the China University of Petroleum-Beijing. (China Daily 09/23/2009 page6) |
