China discovers vast oil reserves, steering towards energy independence

The state-owned Chinese company CNOOC has announced that its deepwater oil field in the South China Sea has significantly more oil than originally estimated. The company discovered deposits containing over 220 million barrels of crude oil, as reported by Reuters.

"The statement mentioned that the reserves are found in CNOOC's deepwater oil field, Kaiping South in the Pearl River Delta near Guangdong province and contain light crude oil," writes the agency.

The Chinese company also increased its production target for this year by about 8 percent to a record level of roughly 700-720 million barrels. This adjustment is mainly due to deposits in the Bohai Sea and the previously mentioned South China Sea.

Beijing is investing in oil and natural gas extraction to become independent of supplies from foreign producers. China is the largest "client" of countries from the Middle East, which - it's worth noting - weakens the position of the USA in the region.

However, the demand for oil and fuel in China has weakened in recent months, partly due to economic issues following the coronavirus pandemic. This is one of the reasons why the crisis in the Red Sea is modestly driving up prices at stations.