Overseas investment

API plans 30% expansion in China

1970-01-01 08:33:28


 
 
 
Less than a year after opening its first overseas office in Beijing, industry association American Petroleum Institute (API) expects to increase its Chinese membership by more than 30 percent from 800.

API global services manager Chip Evans said Chinese oil manufacturers' enthusiasm to obtain product certification through the association reflected the industry's growing internationalization.

"The certification is like speaking the same language all around the world," Evans said in an interview.

Chinese membership came to exceed that of all other countries, including the US, in 2006. Since then, Chinese oil and gas firms have been paying more attention to the global market, and they have come to realize the value of API's globalized trade standards, Evans added.

About a decade ago, only 12 Chinese enterprises had API certification. That number increased to 293 in 2004, and this year, more than 800 enterprises had become full-fledged members, while about 300 are in process of joining.

Many Chinese members have contributed their ideas about establishing industry standards at API conferences in the US, Evans said.

In the overseas market, the Chinese oil industry is gaining a greater voice as its firms seek development and expansion in overseas markets.

A global industry standard was needed to ensure API's China presence wasn't coincidental, Evans said.

Last year, API opened its first overseas office in Beijing - API's "eye and ear" - to promote cooperation and information exchange between US and Chinese oil and gas industries.

"The opening of our Beijing office reflects both the global breadth of the oil and natural gas industry, and the emergence of a robust energy sector that is fueling China's growth," API president and CEO Red Cavaney said.

China's role in today's global petrochemical industry is of growing importance. There were no local operators in China seven years ago, so API had to bring them in from overseas. But today, there are 25, all of which are Chinese operators trained at API's US headquarters.

The days are gone when Chinese companies would always accept standards devised by Western countries. Now, a growing number of Chinese firms, such as China Petroleum Technology Development Corporation and Sinopec, are engaged in determining industry standards.

Source: China Daily