China's apparent oil demand rose by a substantial margin in September, increasing by 9.1 percent year-over-year, according to analysis from global energy analytics provider Platts.
The number was a positive rebound from August, when China saw demand contract by 1.5 percent. Song Yen Ling, a senior writer for Platts China, said in a press release that September's demand growth is more in line with where they expected and that the disappointing numbers from earlier in the summer may have been an aberration.
"September's strong refinery runs and rise in net oil products imports suggest underlying demand was fairly stable in the third quarter," Ling said. "The contractions we saw in August and June were partly due to slowing economic growth, but were also likely due to refiners drawing down their oil product and crude oil inventories built up in the first half of the year."
A growing oil demand in China is good news for the global economy. If the country is increasing its demands for energy, that means it is likely growing and needs to fuel itself. China's economic downturn earlier this year was one of the driving forces behind a number of unfortunate situations including slowing job growth.
However, the country will only be able to get back to where it needs to be if oilfield producers can adequately supply the energy it needs. Companies should be investing in oilfield equipment to build efficiency into the extraction process and better supply increased demands.
Working with an oilfield technologies provider can allow companies to acquire the tools they need to combat any new challenges related to demand growth. Artificial lift can speed up the extraction process, which can help companies deliver more oil in a shorter amount of time.