The British referendum on "Brexit" caused a decline in oil prices by the end of June 2016, and drastically curbed for the continued rebound of oil prices in the past few months. In China, many discussions on Brexit and its impact on crude oil don not have answers. CNOOC and BP have signed contract for $20 billion in LNG; and well as in-depth cooperation on oil and gas exploration, oil trading, engineering services, CNOOC and Tullow Oil in Uganda has oil and gas development cooperation projects, China is concerned about the safety and profitability of Chinese overseas energy investments. Although the Brexit stands as the world's fifth largest economy, but it will not break out of the EU the world's crude oil supply balance, even Brexit negative impact on the economy, but only caught the political level. So to say, the impact of oil prices does not seem appropriate to say. But, compared to oil supply, Brexit greater impact on the financial and currency markets. These effects are important for the crude oil price fluctuations. For China, the Strong US dollar is not conducive to the export of goods, as well as not conducive to the free mobilization of persons and goods. Overall measures China has taken to reduce the demand for Chinese crude oil market in order to prevent a further decline in oil prices, as well as contributions to international climate change commitments, in the future , China will control oil imports, increase imports of natural gas, the focus will turn to the Southeast Asia and South America from Middle East.
The attrition of the energy market in China: confusion or misunderstanding?
The Energy Ministers' Meeting at the G20, took place on June 29-30 in Beijing while the G20 also held the event named Natural Gas Day in Beijing, this activity was for the first time co-hosted by the International Gas Union and the committee of the G20 summit. In the global energy transition, natural gas is responsible for reshaping the global energy outlook, to achieve a clean energy structure as the major task force. According to authoritative statistics, the global resources of over 750 tcm of natural gas, according to the current consumption level, it may have sustainable exploitation for more than 200 years. With the strengthening of environmental protection, reduce carbon emissions and become a broad consensus around the world increasingly pressing issue, natural gas is among the major clean green energy which will be favored by more and more countries. On the G20 Gas Day, the guests expressed a striking consensus - China natural gas market will become one of the most promising markets in the world. As an important outcome of this event , "Beijing Communique" had been launched , within this communiqué, fourth point is clearly demonstrating , the development of the demand for renewable energy; As both agreed, g20 countries have adopted a variety of renewable energy and advanced energy, nuclear power, natural gas and other fossil fuels and cleaner technology, according to the conditions provided for countries to develop a useful energy choice; "Beijing communique" final point is encourage and promote the collection and dissemination of high-quality energy data, while G20 will also provide more support for capacity building, improving energy market transparency and market efficiency. China has promised at Paris COP21summit in 2015 , and steadily promote the main energy change, with accelerating the use of development of natural gas and non-fossil energy production. By 2020, the proportion of non-fossil energy in primary total energy consumption will reach about 15%, the proportion of natural gas in total primary energy consumption and strive to reach about 10%. However, the development of natural gas reminds difficulties, Looking at the current domestic energy policy, faction confusions among country, which have not a unified energy policy, in the extensive economic growth was not intensified with the certain contradiction; But questions ahead of in the period of economic downturn. The presence of China's energy development in the following puzzle: First, the focus of development cannot be determined: Coal or Natural gas, whether China’s clean coal power generation technology is leading. Second, how to implement the 400 billion RMB of future State Capital Investment. The State Council, the National Development and Reform Commission (NDRC) and contradictory National Grid. Thirteen Five-year plan in energy plan clearly brought forward the increase of the utilization of natural gas from the current 6% to less than 10%, consumption reached 400 billion square till the end, continue the implementation of Distributed Energy, Natural Gas, etc., but National Grid is not willing to carry on the distributed energy generation, reluctant to natural gas, as much pointed by National Grid, coal power generation has too much to use out , abandon “water, light and wind” in power sector ,whether natural gas is still need to be? Third, China won’t implement the natural gas industry to be the major energy (also named as the main energy), G20 Natural Gas Day in Beijing, China's experts proposed develop natural gas as the main energy in the future. But in fact, there have not specific environmental policies and support policies. Fourth , "Internet + Energy" and "distributed energy" is a concept or practice? . China's "Internet + energy" is only a concept model . The Internet is a tool, and now Big Data is a bunch of disorganized data, as we all knew, the biggest feature of distributed energy is based on natural gas as primary energy, if the distributed energy is in the direction of China's energy development, State will inevitably give up the National Grid, as well as the surrounding Thermal Power Plant near the cities. Relations between the distributed energy and National Grid are filled to fill a vacancy or recycling and efficient use, rather than replace them.
A more strategic future for natural gas?
The thirteen national Five-year plan made it clearance, further promote the energy revolution, efforts to promote energy production and change of utilization patterns, optimize the structure of energy supply, improve energy efficiency, building a clean, low-carbon, safe, modern and efficient energy system. Till the end of 2015, China's new power generation capacity of non-fossil energy accounted for about 40% of the world; the capacity of hydropower, wind power, solar power installed ranks in first place around the world. But the status quo of China and contradictory policy already exists for the following reasons: First, residents of gas has not seen in a substantial increase, because slow population growth. Second, the industrial gas won’t have a substantial increase in the current industry downturn, the industry fuel unable to be increased any more . The high cost of natural gas plants, widespread losses, all coal can be done in the replacement of natural gas. Third, the distributed energy cannot be increased significantly, as the foregoing reasons, the distributed energy is just a complement to a relatively large network of hot grid , the large-scale development is not possible in the future. Fourth, generating electricity from natural gas cannot be increased significantly. China has more electricity, without shortage of energy generation, such as coal, water, wind, light. Properties of nature gas as this commodity is fuel, a more direct application efficiency. It is also clean in environment, why have to go through the power generation sector. Thus, China's natural gas lies in transportation of gas (mainly on aircraft and ship ), and rely on coal for power generation. An important focal point of China's natural gas in transportation energy, which strongly encouraged natural gas taxis, buses of hybrid, LNG vehicles and LNG powered ship are strong measures to implement 400 billion RMB investment; LNG vehicles should be reaching for 1 / 3 or 1/4 as accounted assumption , as much believed , LNG vehicle is the best transitional technology of transportation. Electric vehicle’s technology as hybrid cannot be replicated on freight transportation.