National Development and Reform Commission: China's energy price stability provides strong support for stable growth and people's livelihood

Zhou Banxue, deputy director of the Price Department of the National Development and Reform Commission, said at the first press conference of the National Development and Reform Commission in 2023 on January 12 that in 2022, the National Development and Reform Commission will innovate mechanisms, stabilize expectations, and strengthen supervision "three arrows at the same time", and energy prices will be generally stable, providing strong support for stable growth and ensuring people's livelihood, in stark contrast to the sharp rise in energy prices in Europe and the United States. According to the data, from January to November 2022, energy prices in the CPI of the United States and the euro area increased by about 27% and 38% year-on-year respectively, while the price of residential hydropower fuel in China's CPI increased by only about 3%, and the increase in gasoline and diesel prices was also significantly lower than that of the United States and Europe.

2023 Energy Economy Forecast and Outlook Research Report

"2023 Energy Economy Forecast and Outlook Research Report Press Conference", released "2022 China Energy Economy Index Research", "Provincial Energy High-quality Development Index Research (2012-2022)", "Inter-provincial Virtual Water Flow Model and Impact Analysis of China's Power Sector", "2023 International Crude Oil Price Analysis and Trend Forecast", "China Carbon Market Review and Optimal Industry Inclusion Order Outlook (2023)", "China's CCUS Transportation Pipeline Network Layout Planning and Prospect", 8 research reports, including "Regional Economic Impact Assessment under Global Warming" and "Energy Development Picture Towards Chinese-style Modernization".

China's energy economy will rebound steadily in 2022, and Professor Tang Baojun, the author of the report "2022 China Energy Economy Index Research", believes that in 2022, China's energy economy will rebound steadily, which is similar to the macro economy, but the fluctuation range is small, and it is a "buffer zone" to resist shocks. The macroeconomic and energy economy trends in 2023 are positive, and the forecast can return to 2019 levels. In the short term, the photovoltaic power generation industry and the wind power generation industry have comprehensive advantages such as high industry quality and high stock index, and can be used as priority investment objects. In the long run, the index of the power grid automatic control equipment industry has increased steadily, and it has investment potential. In 2023, energy supply and demand are expected to rebound, and traditional energy industries such as thermal power and hydropower will still be the main force to ensure supply, and new value of system regulation needs to be stimulated. The energy industry as a whole needs to ensure a safe and stable supply of energy, seize the opportunity of macroeconomic recovery, and rapidly upgrade to feed the country's economic revitalization.

Professor Zhao Lutao, the author of the report "Analysis and Trend Forecast of International Crude Oil Prices in 2023", believes that the global economic recovery will intensify in 2023, the demand growth of emerging economies will show resilience, and the pessimistic expectation of economic recession will be more reflected in the crude oil demand of developed economies such as Europe and the United States; OPEC+ maintains the production cut plan, the U.S. crude oil production increase capacity is limited, Russian oil exports are constrained, and the supply of crude oil market is relatively restrained; The U.S. dollar index retreated, net longs rebounded, and the geopolitical risk premium dominated by the Russia-Ukraine conflict will amplify the volatility range of oil prices and increase the risk of volatility in the oil market. To sum up, the supply and demand of the international crude oil market will be tight in 2023, and geopolitical factors will continue to be disturbed, and the short-term uncertainty will be large. It is expected that the average price of Brent and WTI crude oil will be in the range of $82-92/barrel and $77-87/barrel.

The increase in oil and gas production, especially the increase in the proportion of natural gas production, not only effectively guarantees the national energy security, but also provides strong support for improving China's energy structure, winning the battle to defend the blue sky, and building a clean, low-carbon, safe and efficient modern energy system.

As a global leader in high-end energy equipment solutions, Sany Petroleum will continue to deepen the oil and gas market, continuously promote the innovation of oil and gas development methods, help the domestic oil and gas market reduce costs and increase efficiency, low-carbon and environmental protection, and contribute to the development of China's unconventional oil and gas resources and the green and sustainable development of the oil and gas industry!