During the course of the recession, one factor that helped keep the global market afloat was China's firm economic condition. However, earlier this year, as much of the world powered through a difficult recovery, China's situation began to worsen. Gross domestic product growth slowed dramatically, which affected the country's oil production numbers.
However, things are starting to look up for China and oil demand is rising. According to a report from Reuters, apparent oil demand rose by 640,000 barrels per day (bpd) from October to November, reaching a record high of 10.4 million bpd for the month. This marked the first time in history that China's demand surpassed the 10 million bpd milestone for one month.
Janet Kong, a senior researcher with China International Capital Corporation, told the news source that this is only the beginning, and that demand could reach even greater heights in 2013.
"We expect the economy to recover further next year, which should help lift fuel demand," Kong said. "Industrial output is expected to grow quicker than the economy, bolstering demand for diesel and other industry-related fuel."
This projection is backed up by global financial giant Deutsche Bank, which projected a 3.4 percent demand increase in the coming year in a recent report.
These optimistic figures are certainly a positive, but they will only come to pass if producers equip themselves with proper tools needed for efficient operations. Oilfield equipment such as artificial lift will allow companies to increase the speed at which they produce oil so that they can meet growing demands and feed into a recovering economy.