China’s Oil Strategy Mixes Diplomacy and a Domestic Drilling Push

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China’s Oil Strategy Mixes Diplomacy and a Domestic Drilling Push
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China is stepping up domestic drilling for oil and seeking alternatives in the global market, including striking deals with countries that are subject to Western sanctions

China’s biggest oil companies are increasing their drilling at home and signing big deals overseas, part of a push for energy security that has also led to rising trade with countries that are subject to U.S. sanctions.

China’s demand for crude oil is likely to hit 15.6 million barrels a day this year, around 5% higher than last year, according to a forecast from the Organization of the Petroleum Exporting Countries. The country is the second-largest consumer of oil after the U.S., so any change in its behavior could have a big impact on global prices.

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