Wu, Kang

  • Primary Program Markets and Industrial Development
  • Research Interests Energy economics, energy security, environmental analysis of fossil fuel use, energy trade, oil and gas markets, and energy economy of China.

Biography

Kang is the program director for Markets and Industrial Development at KAPSARC, with many years of energy research and consulting experience. His ongoing research covers a variety of issues related to economic, energy (particularly oil and gas) and environmental developments in China and the rest of the Asia-Pacific region. Kang speaks at international conferences, forums, workshops and training programs, and his research has been cited by international media, including Time magazine, the Wall Street Journal, New York Times, the Asian Wall Street Journal, International Herald Tribune, Far Eastern Economic Review, Financial Times, Reuters, Voice of America, BBC, CNBC and others. In 2003,

Kang testified before the U.S.-China Economic and Security Review Commission on Capitol Hill in Washington, D.C. on the impact of China’s energy sector and market developments on the rest of the world. He is the author and co-author of numerous company studies, journal articles, research papers, project reports, books, chapters and other publications.

Publications

See all Kang’s publications
  • Discussion papers
  • KAPSARC journal article
  • External journal articles
Placing a Value on Spot Sales from a Joint Oil Stockpiling Facility

Placing a Value on Spot Sales from a Joint Oil Stockpiling Facility

In this paper, joint oil stockpiling (JOS) refers to a commercial arrangement whereby crude oil, owned and commercially traded by an exporting country, is stored in an importing country in exchange for priority drawdown by the host country in the event of an emergency. It can thus be classified as both commercial and strategic storage (Doshi and Six 2017). 

23rd January 2020
The Value of Spot Sales to a Producing Country Subject to Production Quotas

The Value of Spot Sales to a Producing Country Subject to Production Quotas

In recent years, global oil markets have experienced intensified competition driven by growing surpluses of lighter crude and shale oil. As their margins have shrunk, many producers have increased output in order to boost revenue, adding to the oversupply. Meanwhile, global market dynamics have been upended, with many predicting that the United States will become the primary swing supplier of crude oil (Morse 2018). This atmosphere is particularly challenging for those major oil companies subject to strict production quotas, as they seek to maximize profitability while maintaining constant levels of crude oil production and sales.

16th January 2020
Securing New Markets in Asia: The Value of Strategic Spot Crude Oil Sales to Teapot Refiners

Securing New Markets in Asia: The Value of Strategic Spot Crude Oil Sales to Teapot Refiners

In the race to secure customers on competitive world oil markets, many oil producers are looking to China as a promising source of increased market share. The task of securing new customers in China can be challenging, as most of China’s recent growth in oil demand has come from ‘teapot refiners’ who have been less predictable, and more like the ‘wild west,’ than China’s national oil companies. Teapot refiners tend to be more focused on short-term profits than long-term relationships.

18th December 2019
An Economic Analysis of China’s Domestic Crude Oil Supply Policies

An Economic Analysis of China’s Domestic Crude Oil Supply Policies

China’s domestic oil production has lagged the rapid growth in the country’s oil consumption since 2000, leading to a large, and growing, reliance on crude imports to meet demand. Factors including China’s current market structure and regulatory environment impede further development of the country’s oil industry, despite a number of policies aimed at protecting domestic producers. Using a short-run equilibrium model of China’s oil and gas supply industry, calibrated to 2016 data, the authors assessed the impact of market access barriers on China’s domestic production. Key findings included: Lifting all import constraints could have increased China’s import demand by around 0.29 million barrels per day in 2016. Opening China’s market to cheaper oil imports in 2016 could have saved approximately $2.8 billion, equivalent to 1.7% of the country’s oil supply costs, primarily due to import substitution for the roughly 9% of domestic production that operates uncompetitively. Improved utilization of the country’s pipeline network could cut China’s oil transportation costs by up to $600 million. The level of uneconomic oil production in China is highly sensitive to the international oil price. At $50/bbl about 9 million tonnes of domestic supplies are found to be uneconomic, accounting for about $2.5 billion of additional costs. At an average $80/bbl the number drops to 6.6 million tonnes, at a cost of $1.1 billion. Rising crude oil import prices since mid-2017 may allow policymakers to further deregulate China’s domestic oil sector.

28th May 2019
Assessing the Impact of Natural Gas on Natural Gas Liquids: Policy Challenges and Imperatives

Assessing the Impact of Natural Gas on Natural Gas Liquids: Policy Challenges and Imperatives

The supply growth of natural gas liquids (NGLs) globally within the last decade is unprecedented. The future global demand growth for NGLs is expected to be strong in areas where relevant industries are garnering robust investment and policymakers support the use of NGLs. However, NGLs are hostage to the fate of natural gas markets, as their production is largely tied to the future production of natural gas. Competition from cheaper coal, calls to rein in carbon emissions from fossil energy, and the rapidly declining costs of renewable technologies imply that natural gas has to fight for its place in the future fuel mix. NGLs may present a silver lining to the future of natural gas, given their close links. The power sector is usually considered the principal driver of future demand growth. However, natural gas is likely to have a bigger role to play in future, given the essential role of NGLs in displacing polluting fuels for cooking and heating, as a feedstock for petrochemical plants that produce thousands of consumer goods.

15th November 2018
The Economic Impact of Price Controls on China’s Natural Gas Supply Chain

The Economic Impact of Price Controls on China’s Natural Gas Supply Chain

Despite significant progress made by China in liberalizing its natural gas market, certain key areas such as market access and pricing mechanisms remain heavily monopolized or controlled by the government. To assess how such distortions impact the market, we developed a Mixed Complementarity Problem model of China’s natural gas supply industry, calibrated to 2015 data.

24th May 2018
China’s Energy Security: Oil and Gas

China’s Energy Security: Oil and Gas

Energy Policy

2014
Strategic Framework for Energy Security in APEC: An Update

Strategic Framework for Energy Security in APEC: An Update

August 2011, prepared for National Center for APEC, Seattle, Washington, 24pp. Distributed at the APEC Business Advisory Council (ABAC) Annual Meeting at the November 2011 APEC, hosted by the United States Honolulu, Hawaii, USA

2011
Comments on Canada and Russia

Comments on Canada and Russia

Fossil Fuels to Green Energy: Policy Schemes in Transition for the North Pacific, by Korea Energy Economics Institute, Seoul, Korea

2010
Impact of the Global Economic Crisis on the World Energy Market: Implications for North Pacific

Impact of the Global Economic Crisis on the World Energy Market: Implications for North Pacific

Fossil Fuels to Green Energy: Policy Schemes in Transition for the North Pacific, by Korea Energy Economics Institute, Seoul, Korea

2010
Natural Gas Prices in China: An Update

Natural Gas Prices in China: An Update

Hydrocarbon Asia

2009
China’s Strategic Reserves Capacity to Double in 2011

China’s Strategic Reserves Capacity to Double in 2011

Oil and Gas Journal

2009
Global Downturn will narrow 2009-10 margins, utilizations for Asia-Pacific

Global Downturn will narrow 2009-10 margins, utilizations for Asia-Pacific

Oil and Gas Journal

2009
Oil in Asia and the Pacific: Production, Consumption, Imports, and Policy Options

Oil in Asia and the Pacific: Production, Consumption, Imports, and Policy Options

Asia-Pacific Issues

2008
Emerging Asia-Pacific LNG Markets Must Sort Pricing, Supply Uncertainties

Emerging Asia-Pacific LNG Markets Must Sort Pricing, Supply Uncertainties

Oil and Gas Journal

2008
Supplying Asia-Pacific Oil Demand: Role of the Gulf

Supplying Asia-Pacific Oil Demand: Role of the Gulf

in The Emirates Center for Strategic Studies and Research, Gulf Oil and Gas: Enduring Economic Security

2007
Study Examines Chinese SPR Growth Alternatives

Study Examines Chinese SPR Growth Alternatives

Oil and Gas Journal

2007
International Experiences of Energy Market Reforms

International Experiences of Energy Market Reforms

Economic and Management Press, Beijing, China

2006
As Oil Demand Surges, China Adds and Expands Refineries

As Oil Demand Surges, China Adds and Expands Refineries

Oil and Gas Journal, July 25, 2005, Vol. 103, Issue 28, pp.20-24

2005
Higher Natural Gas Demand Has China Looking Worldwide

Higher Natural Gas Demand Has China Looking Worldwide

Oil and Gas Journal, July 18, 2005, Vol. 103, Issue 27, pp.50-57

2005
Chinese Companies Pursue Overseas Oil and Gas Assets

Chinese Companies Pursue Overseas Oil and Gas Assets

Oil and Gas Journal, April 18, 2005, Vol. 103, Issue 15, pp.18-25

2005
China’s Ethylene Sector Continues to Expand, Attract Foreign Investment

China’s Ethylene Sector Continues to Expand, Attract Foreign Investment

January 5, 2004, Oil and Gas Journal, Vol.102, No. 1, pp.46-53

2004
Asia-Pacific Oil Dependence, Imports to Grow

Asia-Pacific Oil Dependence, Imports to Grow

April 15, 2002, Oil and Gas Journal, Vol.100, No. 15, pp.20-23

2002
Deregulation Will Change Taiwan’s Petroleum Product Market

Deregulation Will Change Taiwan’s Petroleum Product Market

Oil and Gas Journal, December 24, 2001, Vol.99, No. 52, pp.58-61

2001
China’s Refining Sector Challenges: Surging Demand, Rising Imports of Sour Crudes, New Business Models

China’s Refining Sector Challenges: Surging Demand, Rising Imports of Sour Crudes, New Business Models

Oil and Gas Journal, February 19, 2001, Vol.99, No. 8, pp.66-70

2001
Restructuring of China’s Oil Industry Continues as Doubts Regarding Its Success Loom

Restructuring of China’s Oil Industry Continues as Doubts Regarding Its Success Loom

Oil & Gas Journal, January 3, 2000, Vol.98, No. 1, pp.19-23

2000
China’s Oil Demand and Supply: Estimates for 1998 and Outlook to 2010

China’s Oil Demand and Supply: Estimates for 1998 and Outlook to 2010

Middle East Economic Survey, January 25, 1999, Vol.42, No. 4, pp.D10-12

1999
Fossil Energy Consumption and Supply Security in Northeast Asia

Fossil Energy Consumption and Supply Security in Northeast Asia

in Susan L. Shirk and Michael Stankiewicz (eds.) Energy Security in Northeast Asia: Supply, Demand; Conflict and Cooperation, IGCC Policy Paper, No. 36, February 1998, pp.25-40, Institute of Global Conflict and Cooperation, University of California

1998
The Outlook for Energy Supply and Demand in Northeast Asia

The Outlook for Energy Supply and Demand in Northeast Asia

in Susan L. Shirk and Michael Stankiewicz (eds.) Energy Security in Northeast Asia: Supply, Demand; Conflict and Cooperation, IGCC Policy Paper, No. 36, February 1998, pp.11-24, Institute of Global Conflict and Cooperation, University of California

1998
Asia-Pacific Energy Demand and Supply to 2010

Asia-Pacific Energy Demand and Supply to 2010

Energy, 1996, Vol.21, No. 11, pp.1017-1039

1996
Economic Assumptions Under Asian Energy Markets

Economic Assumptions Under Asian Energy Markets

Energy, 1996, Vol.21, No. 11, pp.1005-1015

1996
China’s Petroleum Links

China’s Petroleum Links

Hydrocarbon Asia, March 1996, pp.44-47

1996
China’s Petrochemical Industry: An Update

China’s Petrochemical Industry: An Update

Hydrocarbon Processing, March 1995, Vol.74, No. 3, pp.40-41

1995
Regional Comparisons in China’s Petroleum Industry

Regional Comparisons in China’s Petroleum Industry

Hydrocarbon Asia, March 1995, pp.34-42

1995
Energy Development in China: National Policies and Regional Strategies

Energy Development in China: National Policies and Regional Strategies

Energy Policy, February 1995, Vol.23, No. 2, pp.167-178

1995
Energy in Latin America: Production, Consumption, and Future Growth

Energy in Latin America: Production, Consumption, and Future Growth

January 1995, Praeger, Westport, Connecticut, 310pp, xxv

1995
The Outlook for the Asia-Pacific Oil Industry in the 1990s and Beyond

The Outlook for the Asia-Pacific Oil Industry in the 1990s and Beyond

Pacific and Asian Journal of Energy, December 1994, Vol. 4, No. 2, pp.125-137

1994
Latin American/Caribbean Energy Supply and Demand in the 1990s

Latin American/Caribbean Energy Supply and Demand in the 1990s

OPEC Review, Summer 1994, Vol.18, No. 2, pp.197-206

1994
Petroleum Price Outlook to 2005

Petroleum Price Outlook to 2005

Hydrocarbon Asia, July/August 1994, pp.42-44

1994
China’s Petrochemical Outlook

China’s Petrochemical Outlook

Hydrocarbon Processing, June 1994, Vol.74, No. 6, pp.50B-50H

1994
The Chemical Industry, by Country: China

The Chemical Industry, by Country: China

Hydrocarbon Processing, Vol.74, No. 5, May 1994, pp.49-50

1994
Petroleum Price Outlook to 2000

Petroleum Price Outlook to 2000

Hydrocarbon Asia, January/February 1993, pp.8-10

1993
Energy Policies in Asian-Pacific Developing Countries

Energy Policies in Asian-Pacific Developing Countries

Asian-Pacific Economic Literature, Vol.6, No. 2, November 1992, pp.11-41

1992
Oil Industry and Market Developments in China

Oil Industry and Market Developments in China

Middle East Economic Survey, November 1, 1999, Vol.42, No. 44, pp.D1-D10

0199

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