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Asia becomes core growth driver of world's energy consumption in 2025 amid oil, gas oversupply: report

China

Asia becomes core growth driver of world's energy consumption in 2025 amid oil, gas oversupply: report
China

China

Asia becomes core growth driver of world's energy consumption in 2025 amid oil, gas oversupply: report

2026-02-04 17:37 Last Updated At:20:57

As global oil and gas markets remained oversupplied in 2025, Asia continued to serve as the core growth driver of world's energy consumption, according to the 2025 Report on the Development of the Domestic and International Oil and Gas Industry released on Tuesday in Beijing.

The report said that in 2025, the global oil and gas supply-demand balance became increasingly loose.

The annual average price of Brent crude oil was 68.19 U.S. dollars per barrel, down 14.62 percent year on year, while global crude oil and natural gas production rose by 2.4 and 3.1 percent, respectively, the report said.

Energy consumption in the Asia-Pacific region grew by 2.7 percent, accounting for nearly 80 percent of global consumption growth, and energy demand in Europe and the Eurasian continent declined by 2.0 percent, said the report.

Global ethylene production capacity continued to shift toward Asia, with China ranking first worldwide, further strengthening regional industrial competitiveness, according to the report.

"According to our forecasts, the market will continue to show a loose pattern in 2026. In response to global uncertainties, China will rely on stable economic development to serve as a cornerstone and stabilizer for the global oil and gas market," said Lu Ruquan, director of China National Petroleum Corporation Economics and Technology Research Institute.

The report projected that the loose market conditions will persist in 2026.

Under the baseline scenario, the annual average Brent crude oil price is expected to range between 60 and 65 U.S. dollars per barrel, while natural gas demand will maintain low- to medium-speed growth. Global ethylene capacity is forecast to increase by 9.3 million tonnes per year, of which China will account for 8.05 million tonnes, further reinforcing the foundation of its petrochemical industry, according to the report.

The report also noted that China's refining and chemical sector is accelerating its shift toward higher-end production, with rapid growth in chemical new materials. The self-sufficiency rate of high-end chemical materials has risen to over 80 percent.

In 2025, China's investment in oil and gas exploration and development remained at a high level, with both reserves and production reaching record highs, the report said.

China's crude oil output rose to a historic high of 216 million tonnes, while natural gas production, including coal-derived gas, reached 263.8 billion cubic meters, marking the ninth consecutive year of increases exceeding 10 billion cubic meters. China's refining capacity reached 939 million tonnes per year, while ethylene capacity came in at 62.7 million tonnes per year, both ranking first globally.

Asia becomes core growth driver of world's energy consumption in 2025 amid oil, gas oversupply: report

Asia becomes core growth driver of world's energy consumption in 2025 amid oil, gas oversupply: report

European Union (EU) High Representative for Foreign Affairs and Security Policy Kaja Kallas on Tuesday reiterated the EU's support for Greenland and Denmark amid uncertainty.

Addressing the Arctic Frontiers conference 2026 in Tromso, Norway, Kallas stated that although tensions in Greenland are lower than they were a few weeks ago, there is still little clarity about what comes next or when the next dispute may arise.

"I will reiterate what I said, that the European Union stands with Greenland. We stand with our member state Denmark and we stand by the UN Charter," said Kallas, adding that Greenland's future is for the Greenlanders and Denmark to decide.

She also called for a new Arctic policy to deal with the escalating geopolitical tensions, climate change and growing economic interests in the region.

On Monday, the Danish Ministry of Defense said in a statement that Denmark decided to build five Arctic ships across multiple production sites in the country, with final assembly taking place in Frederikshavn, and this will help the country strengthen its defense capabilities.

The statement said that the shipyard in Friedrichshafen would be upgraded and it would be possible to build ships larger than these five warships in the future.

Greenland, the world's largest island, primarily located within the Arctic Circle, is a self-governing territory within the Kingdom of Denmark, with Copenhagen retaining control over defense and foreign policy. Since returning to office in 2025, U.S. President Donald Trump has repeatedly expressed a desire to "obtain" Greenland, sparking strong opposition across Europe.

According to a report released by a Danish intelligence agency in December 2025, Denmark has for the first time labeled the U.S. as a potential security concern.

A poll released by Danish Broadcasting Corporation (DR) on Tuesday showed that up to 60 percent of respondents described the U.S. as an adversary, while only 17 percent considered it still an ally.

EU reiterates support for Greenland, Denmark amid uncertainty

EU reiterates support for Greenland, Denmark amid uncertainty

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