r/oil • u/Suspicious-Bad4703 • 12d ago

China's Sinopec Sees 16% drop in Profit as Demand for Oil Wanes Amid 'New Energy' Boom

https://www.msn.com/en-us/money/markets/china-s-sinopec-sees-16-drop-in-profit-as-demand-for-oil-wanes/ar-AA1Bu9Gk?ocid=finance-verthp-feeds
152 Upvotes

96% Upvoted

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8

u/Suspicious-Bad4703 12d ago

China's 'New Energy' policy law went into effect on January 1st and it promotes a 'safe, orderly transition away from fossil fuels': https://www.enerdata.net/publications/daily-energy-news/china-developping-renewables.html

9

u/Playingwithmyrod 12d ago

It’s sad how we’re just letting China pave the way to the future. At some point the transition will have to happen, not getting ahead of it now just dooms the next generations to fight an uphill battle against another world superpower who for better or for worse had some foresight to get ahead of it.

8

u/faizimam 12d ago

As the saying goes, oil is a miraculous chemical . It's a shame we're wasting it by burning it

7

u/Accomplished_Ruin133 12d ago

China is building the world’s renewable technologies using the cheap energy afforded to it by consuming fossil fuels.

The West meanwhile particularly Europe has handicapped itself by regulating itself into energy scarcity so it can’t afford to build and manufacture its own transition technologies and materials. It’s a classic cart before horse scenario.

In 30 years the West will look back on one of the greatest wealth transfers to the East in history because of its complacency.

3

u/Hour_Performance_631 12d ago

Empires rise and fall, it seem to be recurring event in history at least

2

u/FencyMcFenceFace 12d ago

Eh, their consumption keeps increasing.

Their road will still be paved with oil for quite a while.

5

u/Playingwithmyrod 12d ago

Oil will always have some demand but my point is we are going backwards in our renewable energy policies. If we want to have a surplus of oil in the future so we can make the cheap products that rely on it and be competitive with China in the renewable industry we should be investing now.

2

u/FencyMcFenceFace 12d ago

?

US renewable generation has gone up every year. Emissions have gone down every year. US emissions peaked 20 years ago and China's is still increasing. China has much higher carbon intensity than we do.

What part is going backwards?

2

u/Playingwithmyrod 12d ago

Have you seen the policies of the current administration?

3

u/FencyMcFenceFace 12d ago

Have you seen China's current policies of encouraging more coal?

Or does that not count for some reason?

2

u/dlewis23 12d ago

China has backed off most of the permits for new coal power plants late last year. https://apnews.com/article/china-coal-plant-approval-permit-greenpeace-72f2c457e3ee6f09aef464a017acae2d

And I was reading recently that it looks like they are stopping ones that are under construction currently.

2

u/Playingwithmyrod 12d ago

I’m not talking about them not using oil and coal, I’m talking about them gearing up to make the switch in the long term. They are smart to do it while oil is cheap. They can burn burn burn to ramp up infrastructure and then when they’re able to transition it’s gonna be way more seamless than for the United States who is willfully lagging behind. This isn’t about them caring about the environment, this is about planning to set your country up for success decades out.

1

u/LandmanLife 12d ago

They don’t have to worry about their economy.

Or taking care of their citizens.

-1

u/Playingwithmyrod 12d ago

Doesn’t change the fact they are a huge economic power and we need to be competing with them in all facets to stay on top in the world stage

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u/fpoling 10d ago

With sufficiently cheap solar/wind energy it will cheaper to synthesize liquid fuel from coal than extract oil. Longer term one can start capturing atmospheric CO2 for any needs that chemical industry needs.

1

u/Gravitationsfeld 12d ago

The thing with exponential curves is that nothing is happening and then all at once. Humans are notoriously bad at taking this into account.

2

u/Underradar0069 8d ago

China is moving to solar and US is going back to coal 😂 MAGA