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Sinopec (SNP) Strikes Big Gas Find at China's Zhongjiang Field
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China Petroleum & Chemical Corporation , also known as Sinopec, madea natural gas discovery at the Zhongjiang gas field in the Sichuan province of China.
Located in Zhongjiang County, Deyang City, the Zhongjiang field is an ordinary sandstone gas reservoir, with low porosity, low permeability and strong concealment. The main gas reservoir is 2,000-3,000 meters deep and covers 404.9 square kilometers.
The Zhongjiang field produced 5.29 billion cubic meters (bcm) of gas until now. For two years, the field produced more than 1 bcm of gas every year, which is equivalent to meeting the daily gas consumption of 5.5 million households per year. The latest discovery increases the proved natural gas reserves at the Zhongjiang field to more than 34 bcm.
Then again, the discovery brings the total natural gas reserves at the Sichuan basin to 106.1 bcm. The Sichuan basin is rich in ultra-deep natural gas and deep shale gas resources, and is crucial to improving the country's production in the future. Despite comprising both conventional and unconventional natural gas, the low proven rate and harsh conditions for exploitation made the field difficult to develop.
Over the past years, Sinopec resolved three major challenges in oil and gas exploration and development, which include narrow-channel tight gas fields, ultra-deep and high-sulfur gas fields, and deep shale gas fields. As a result, China became one of the few countries to master the exploration and development of large ultra-deep gas fields, with high sulfur content. The company claimed that the latest discovery will help establish China’s first 100 bcm natural gas production base.
Energy companies have been progressively shrinking their traditional oil and gas businesses as renewable energy is becoming dearer to investors. Sinopec, like its peers, is focused on the development of natural gas, with a long-term pivot to hydrogen. Notably, the latest discovery boosts the company’s clean energy supply capacity, while ensuring energy security for the country.
Company Profile & Price Performance
Headquartered in Deyang, China, Sinopec is a leading integrated energy company, which engages in the exploration, production and transportation of petroleum products. It is the largest refiner and marketer of refined petroleum products in China.
Shares of the company have outperformed the industry in the past six months. Its stock has declined 12.6% compared with the industry’s 18.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
The company currently carries a Zack Rank #2 (Buy).
Image: Bigstock
Sinopec (SNP) Strikes Big Gas Find at China's Zhongjiang Field
China Petroleum & Chemical Corporation , also known as Sinopec, madea natural gas discovery at the Zhongjiang gas field in the Sichuan province of China.
Located in Zhongjiang County, Deyang City, the Zhongjiang field is an ordinary sandstone gas reservoir, with low porosity, low permeability and strong concealment. The main gas reservoir is 2,000-3,000 meters deep and covers 404.9 square kilometers.
The Zhongjiang field produced 5.29 billion cubic meters (bcm) of gas until now. For two years, the field produced more than 1 bcm of gas every year, which is equivalent to meeting the daily gas consumption of 5.5 million households per year. The latest discovery increases the proved natural gas reserves at the Zhongjiang field to more than 34 bcm.
Then again, the discovery brings the total natural gas reserves at the Sichuan basin to 106.1 bcm. The Sichuan basin is rich in ultra-deep natural gas and deep shale gas resources, and is crucial to improving the country's production in the future. Despite comprising both conventional and unconventional natural gas, the low proven rate and harsh conditions for exploitation made the field difficult to develop.
Over the past years, Sinopec resolved three major challenges in oil and gas exploration and development, which include narrow-channel tight gas fields, ultra-deep and high-sulfur gas fields, and deep shale gas fields. As a result, China became one of the few countries to master the exploration and development of large ultra-deep gas fields, with high sulfur content. The company claimed that the latest discovery will help establish China’s first 100 bcm natural gas production base.
Energy companies have been progressively shrinking their traditional oil and gas businesses as renewable energy is becoming dearer to investors. Sinopec, like its peers, is focused on the development of natural gas, with a long-term pivot to hydrogen. Notably, the latest discovery boosts the company’s clean energy supply capacity, while ensuring energy security for the country.
Company Profile & Price Performance
Headquartered in Deyang, China, Sinopec is a leading integrated energy company, which engages in the exploration, production and transportation of petroleum products. It is the largest refiner and marketer of refined petroleum products in China.
Shares of the company have outperformed the industry in the past six months. Its stock has declined 12.6% compared with the industry’s 18.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
The company currently carries a Zack Rank #2 (Buy).
Some other top-ranked players in the energy space are Devon Energy Corporation (DVN - Free Report) and Petrobras (PBR - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy), and Range Resources Corporation (RRC - Free Report) , carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Devon’s earnings for 2021 are expected to increase 39% year over year.
Petrobras’ earnings for 2021 are expected to rise 20% year over year.
Range Resources’ earnings for 2021 are anticipated to increase 27.5% year over year.