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CNOOC CEO sees potential for US-China energy cooperation

Created at 27 Aug · 11:27 AM1 source↑ Market-relevant
IN SHORT

China National Offshore Oil Corporation (CNOOC) sees potential for energy cooperation with the United States, according to CEO Huang Yongzhang. The company would consider future investments with U.S. partners, despite existing tariffs from the trade war.

Who's Involved

CNOOC
Chinese state-owned oil and gas major
Huang Yongzhang
CEO of CNOOC Ltd
Donald Trump
U.S. President during whose visit energy deals were discussed

↳ Why This Matters

The comments from CNOOC's CEO suggest a potential thaw in energy trade relations between the U.S. and China, which could impact global energy markets and geopolitical dynamics, despite ongoing trade tensions.

Key facts

  • CNOOC CEO Huang Yongzhang sees potential for energy cooperation between China and the U.S.
  • CNOOC would consider future investments with U.S. partners.
  • Existing tariffs from the U.S.-China trade war remain in place, impacting energy trade.
  • The U.S. is the largest LNG exporter, while China is the largest importer.
  • Chinese energy companies with U.S. LNG deals are reselling cargoes to bypass tariffs.

Chinese state-owned oil and gas major CNOOC sees potential for energy cooperation between China and the United States, according to CEO Huang Yongzhang. He added that the company would consider investments alongside U.S. partners in the future.

China was a buyer of U.S. oil and gas until Beijing imposed tariffs on these products during the trade war. While relations have improved, the tariffs remain, largely freezing energy trade. During President Donald Trump's visit to Beijing in May, U.S. officials discussed potential energy deals, including increased Chinese purchases of liquefied natural gas, though no concrete agreements have materialized.

"The U.S. is currently the world's largest producer and exporter of LNG, while China is currently the largest importer of LNG — so there is actually still a lot of room for cooperation in the future," Huang stated, without providing specific details on potential deals.

Speaking after the company announced its half-year results, Huang also indicated that CNOOC would collaborate with partners, including those in the U.S., to invest in areas where shareholder value can be created. CNOOC is among several Chinese energy firms that have long-term supply agreements with U.S. LNG producers. Since the tariffs were implemented, these companies have been reselling the cargoes to circumvent the import duties.

Frequently asked questions

CNOOC, or China National Offshore Oil Corporation, is a major state-owned oil and gas company in China.

Energy trade between the U.S. and China is largely frozen due to tariffs imposed by China during the trade war, despite previous cooperation.

The U.S. is the world's largest LNG exporter and China is the largest importer, creating a natural basis for cooperation if trade barriers are reduced.

What Happens Next

01CNOOC will consider investments with U.S. partners.
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How It Developed

CNOOC CEO Huang Yongzhang stated potential for energy cooperation between China and the U.S.
Huang indicated CNOOC would consider future investments alongside U.S. partners.
China previously bought U.S. oil and gas before tariffs were imposed during the trade war.
U.S. officials raised the possibility of energy deals, including LNG purchases, during a visit to Beijing.
Huang noted the U.S. is the largest LNG exporter and China the largest importer, indicating room for cooperation.
CNOOC has long-term supply deals with U.S. LNG producers and resells cargoes to avoid tariffs.

Sources

T1
Chinese state oil giant CNOOC sees potential for US-China energy cooperationReuters

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