Skip to content Skip to footer

Loading Results

Oil & gas

In turbulent times, we are ready with practical assistance to help you prepare for, respond to, and emerge stronger from crises.

Oil and gas trends

Oil and gas trends

The China energy market is dominated by state-owned oil and gas companies. China is the world’s second largest consumer of oil and gas, but only the sixth largest producer of the same. As a big oil consumer, China's oil consumption is increasing year by year with fluctuating growth rates. However, as oil supply still cannot meet the demand, China mainly relies on imports.

Currently, a country that imports more than 50% of its oil consumption is widely considered to possess an energy security risk. With the rapid growth of China’s oil and natural gas consumption, oil and gas companies will need to boost their output to meet China’s massive energy needs and reduce the nation’s reliance on oil imports. Faced with declining domestic oil reserves, the need to improve efficiency and productivity is gaining traction with the Chinese oil and gas companies. Additionally, China has also entered into strategic partnerships with international oil and gas companies in overseas upstream projects (including in unconventional energy resources) with a view to securing future energy supply.


Recent years, the world’s major oil companies have successively announced net zero (or close to zero) strategy and have continuously increased their investments in new energy section. Natural gas which is clean, green and low-carbon products, is recognised as an important means of future energy transition and a "transition bridge" to zero-carbon energy.

The Chinese government is also promoting the use of natural gas as a clean fuel. Prices of refined products and natural gas are regulated in China, and Chinese oil and gas companies cannot pass on high oil prices to consumers. At the same time, there is a significant tax burden on producers.

National oil and gas companies in the Middle East are entering into joint ventures with Chinese oil and gas companies with a view to secure an export market for oil (for these Middle East producers) as well as penetrating the Chinese market with petrochemical products.

In turbulent times, we are ready with practical assistance to help you prepare for, respond to, and emerge stronger from crises. Please contact us.

How we can help

Digital in energy

Much has been written about the transformative impact of digitising operations in oil and gas. Oil and gas companies which have long been technology intensive at the well-head, are now beginning to extend their technological capabilities, especially digital capabilities, to the rest of their operations.

We conservatively estimate the use of digital technologies in the upstream sector could result in cumulative savings in capital expenditures and operating expenditures of US$100 billions by 2025. For instance, savings can be realised in operational excellence (more effective maintenance and better operation of assets); in the supply chain; and in the use of integrated platforms (connecting the organisation with external partners).

We believe there are some important guiding principles to consider when developing a digital business models:

  • The solution needs to be a business-led exercise, identifying the greatest business challenges and assessing how digital can help.
  • The digital transformation of a company needs to be holistic and address all the elements of the operating model.
  • Building a digital organisation needs to encompass stakeholders beyond the company itself.
  • There is no one successful digital template to follow.
  • Getting the right weighting between technical and technology capabilities is critical.

View more

Enhanced profit recovery

With the severe and complex domestic and foreign environments in 2020, especially under the impact of the COVID-19 pandemic, international oil prices and domestic refined oil prices have been in a state of volatility. Thanks to strict prevention and control measures, the domestic economy has recovered steadily. It is expected that China's economy will rebound rapidly in 2021.

Now that the international oil price has started to rebound in the early 2021, producers need to start thinking about how to deploy this cash sensibly back into the business. Companies should continue to focus on reducing operational costs to improve profitability and be well-positioned for future market swings.

View more

Energy Deals

PwC works with oil & gas companies throughout the hydrocarbon value chain from reservoir to consumer including exploration, production and service companies. We help our clients undertake deals that optimise value and minimise risk.

Our experienced M&A specialists assist clients on a range of transactions from smaller and mid-sized deals to the most complex transactions. We integrate our deep industry knowledge and expertise into the point of view we bring to our clients, delivering strategy through execution. Our goal is to optimise your deals.

View more

Contact us

Chong Heng Hon

Chong Heng Hon

Partner, PwC Hong Kong

Tel: +[86] (10) 6533 2244