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Speech by Consul General Wang Xinping at the 3rd Annual Sino-Canadian Oil and Gas Symposium
2015/06/11

Honorable Chair James Gray,

Calgary Economic Development Chairman Steve Allan

Dear colleagues and friends,

It's a great pleasure to speak at this Symposium, though the time is not that encouraging.

While looking at the weekly water-diving chart of oil price, I reckon it's important to identify the contributing factors. In my perception, there are at least 6 of them:

1, glut of supply, primarily shale oil and increased production

2, holding on to market share by some low-cost producers

3, the global economic slowdown

4, the increasing application and share of renewables

( By the end of last year, renewables accounted for 28% of the energy mix of Germany )

5, the advance of energy-saving technology

6, the restructuring of the emerging economies

10 months into the fall, some of the above factors have been partially digested, and some continue to grow, so the depression of oil price may linger on.

Yet oil and gas remain to be the primary energy for the world economy, so in due time the market will restore to reason, maybe in 1 or 2 quarters.

For any oil enterprise to survive and prosper against such a background, we have to be competitors, by way of innovating and advancing technologies, by way of cutting cost and raising efficiency, and by way that relevant authorities provide an amicable environment, particularly policywise, for the industry.

I know this is easier said than done, but there might not be a way out otherwise.

This past April, according to Chinese Customs, China imported 7.4 million barrels of oil each day, taking over the United States as the largest importer (the US imported 7.2 million barrels).

We all know that the Chinese economy is growing slower, yet China still grows fastest among bigger economies.

China is also building a strategic oil reserve of 90 days, and till last April we have reserved roughly 1/6 of that amount.

In this country of Canada, China is looking for a long-term and stable partnership in energy, as well as agriculture and other sectors. We are aware of your resource abundance, legal transparency, cultural diversity and social inclusiveness.

During past years, over 40 billion USD or 80% of China's accumulated investment in Canada settled in Alberta and Saskatchewan in the energy sector, which is among the top 10 investors, and possessing a greater potential.

The Chinese government supports our enterprises to continue explore investment opportunities in Canada.

And to that end, the Chinese Consulate in Calgary will do our utmost to contribute.

Thank you!

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