China's financial struggles have dominated 2012 headlines. Once a beacon of hope for the global economic situation, the country's production and GDP growth have slowed considerably in recent months and, as a result, China's energy consumption has taken a hit.
According to a report from the energy analytics firm Platts, China's oil demand suffered a 1.5 percent year-over-year decline in August. This can be attributed to a number of factors, including the United States' increased efforts to bring manufacturing back to domestic shores.
However, the country is not taking its monetary troubles lying down. A number of economists are calling for Chinese officials to make regulatory changes to spur growth. Some have already come to pass, such as a multi-billion dollar infrastructure investment project. Should these efforts be successful, many experts believe consumption will rise, which means companies will need to invest in proper oilfield equipment to keep up.
Platts senior writer Song Yen Ling said in a press release that China's efforts could come to be recognized as quickly as the next couple of months.
"There is still an argument to be made that government incentives for growth are going to kick-in and we'll see a rise in China's consumption in the remaining months of the year," Ling said.
Oilfield producers must always be prepared for fluctuations in consumption and adjust their practices accordingly. And while decreased consumption may seem to be cause to slow down production, it's important to understand that organizations are always going to be fighting to finding solutions to reverse the direction due to its positive effects on the economy. Working with an oilfield technologies provider will allow companies to acquire the tools they need to meet any production demand level.