St. Petersburg (Russia): Igor Sesin, CEO of Rosneft, one of the most influential men in Russia’s energy sector, said on Saturday that China is seeking full energy independence, and that could become a major energy exporter in the near future.
China’s economic and military rise over the past 45 years is considered one of the most important geopolitical events of recent years, along with the collapse of the Soviet Union that ended the Cold War in 1991.
Sesin said a massive increase in electricity consumption is changing the overall landscape of the global energy market as populations skyrocketed in Africa and Asia and the digital revolution sparked massive demand.
Speaking at the St. Petersburg International Economic Forum, Sesin said China accounts for a third of global investment in the energy sector, has increased its renewable energy capacity and is now one of the leaders of nuclear power.
“Already ensuring energy safety, China is confidently moving towards full energy independence, creating a stable energy balance based on its own resources,” Sesin said in a speech referring to both Greek mythology and Nicolo Machaveli.
“Given the sustainability and professionalism of our Chinese comrades, there is no doubt that they will achieve the desired outcome in the near future.
China is currently the world’s largest importer of crude oil and the leading importer of natural gas. Russia is the world’s second largest oil exporter and has the world’s largest reserves of natural gas.
Sesin, who worked with Vladimir Putin in the capital of St. Petersburg’s former imperial capital, has been running Rosneft since 2012.
Rosneft accounts for around 40% of Russia’s oil production, 14% of the country’s gas production and 32% of the refinery market. He is also the largest exporter of oil to China.
Sechin said the decision to speed up the increase in power output appeared to be justified in hyperopia in light of the Israeli-Iran conflict. He added that the OPEC+ group could proceed with the power hike in about a year after the initial plan.
He turned his attention to the vast US debt mountains, warning that the great powers from Spain Habsburg and pre-revolutionary France to the Ottoman Empire and Britain had declined due to high levels of public debt.
The expansion of the western military industrial complex is to divert huge resources from the production sector and is unlikely to become a panacea for European and US issues, Sesin said.
“There’s always an asymmetric answer,” he added.
However, his focus lies in China’s role, with examples of growth in electric vehicle sales leading to a significant slowdown in motor fuel demand over the last year.
“If this trend continues, it could have a major opposite effect on the balance of the oil market,” Sechin said.
He added that it is more of a process of coal into synthetic fuels and chemicals than a key part of China’s strategy to reduce its dependence on energy imports.
Approximately 40 million tonnes of coal are used, producing more than 260 million tonnes for the production of synthetic fuels and ammonia and methanol.
