The US energy industry is open for business and expects a strong long-term energy relationship with China, US Energy Department Assistant Secretary for Fossil Energy, Steve Winberg, told US and Chinese oil and gas executives in Houston on Wednesday last week.
Against the backdrop of what executives hope is a short term trade disagreement, Winberg told the 18th Annual US-China Oil and Gas Industry Forum (OGIF) that the US has never revoked an LNG export authorisation, nor plans to.
The US has become the world’s largest oil and gas producer, and our industry can supply a growing energy demand in China, he told the Forum last week.
The US Energy Association and the US Energy Department brought together hundreds of US and Chinese oil and gas executives from across the supply chain to discuss supply/demand realities and ways both countries can co-operate to meet a growing global energy demand.
USEA Executive Director Barry Worthington echoed Winberg’s sentiments. He told Chinese oil and gas executives last week what he told China’s state-owned and largest oil and gas producers last month – the US-China energy relationship is symbiotic and for the long-term.
In remarks to China National Petroleum Corporation and energy stakeholders at the International Energy Forum in Beijing in August, Worthington said:
“The US-China energy relationship is symbiotic, and cooperation on energy is likely for the long term, despite short term trade issues to course correct our global trade deals.
“President Trump made clear last year when he met with Chinese President Xi Jinping that the US and China are partners. He announced US$250 billion in deals, several of which were between Chinese companies and USEA members, like LNG giant Cheniere Energy. If you follow the money, and the long view of companies in our sector, you’d be optimistic too.
“Last November, Cheniere Energy signed an MOU with CNPC to continue discussions about supplying China with US LNG. Despite China’s retaliatory tariffs on US LNG, China has a growing demand for natural gas. And by 2019, China is expected to become the largest natural gas importer in the world. Half of its supply will likely come from US LNG ships and the rest from a pipeline that runs through Europe and Central Asia.
“Each year, USEA, with the US Energy Department, brings together public and private oil and gas stakeholders from both of our countries to discuss resource management. China is aware of its growing demand for natural gas, and the global demand that could rival its own.
“President Trump’s efforts to improve our trade deals strengthens our energy and national security. As the US becomes a larger world supplier, especially for our oil and gas resources, and as we become less reliant on other countries for our energy and technology, our negotiating power on other issues of national interest increases.
“Will there be bumps in the road? Yes. And that’s ok. We can have both cooperation and competition with China”, concluded Worthington.
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