Artificial intelligence could help the energy industry tap an additional one trillion barrels of oil by making more of these barrels economical to extract. Wood Mackenzie analysts made the prediction recently, adding fuel to an already heated debate: is AI going to accelerate the transition or, as the Wood Mac prediction suggests, hinder it by extending the world’s reliance on oil and gas? For the energy industry, the question is rather irrelevant. From the perspective of companies in the business of ext ...

Group 1: Coal, Oil, and Natural Gas Production - In October, the production of raw coal remained at a high level, with an output of 410 million tons, a year-on-year decrease of 2.3%, and an average daily output of 13.12 million tons. From January to October, the total output was 3.97 billion tons, reflecting a year-on-year increase of 1.5% [1] - Crude oil production continued to grow, reaching 18 million tons in October, a year-on-year increase of 1.3%, with a daily average of 581,000 tons. For the first ten months, the total crude oil output was 180.64 million tons, up 1.7% year-on-year [3] - Natural gas production saw a slowdown in growth, with October output at 22.1 billion cubic meters, a year-on-year increase of 5.9%, and a daily average of 710 million cubic meters. From January to October, the total output was 217 billion cubic meters, up 6.3% year-on-year [7] Group 2: Electricity Production - Electricity production in the industrial sector accelerated in October, with a total generation of 800.2 billion kilowatt-hours, a year-on-year increase of 7.9%, and a daily average of 25.81 billion kilowatt-hours. For the first ten months, the total electricity generation was 8,062.5 billion kilowatt-hours, reflecting a year-on-year increase of 2.3% [9] - By type, thermal power generation turned from decline to growth, with a year-on-year increase of 7.3% in October, compared to a decrease of 5.4% in September. Hydropower generation increased by 28.2%, although the growth rate slowed by 3.7 percentage points from September. Nuclear power generation grew by 4.2%, accelerating by 2.6 percentage points from September. Wind power saw a decline of 11.9%, with the decline rate expanding by 4.3 percentage points, while solar power generation increased by 5.9%, but the growth rate slowed by 15.2 percentage points from September [9]

Group 1: Coal, Oil, and Natural Gas Production - In October, the industrial raw coal production remained at a high level with an output of 410 million tons, a year-on-year decrease of 2.3%, and an average daily output of 13.12 million tons [1] - From January to October, the industrial raw coal output reached 3.97 billion tons, showing a year-on-year increase of 1.5% [2] - The industrial crude oil production in October was 18 million tons, reflecting a year-on-year growth of 1.3%, with a daily average output of 581,000 tons [2] - The industrial natural gas production in October was 22.1 billion cubic meters, with a year-on-year increase of 5.9%, although the growth rate slowed by 3.5 percentage points compared to September [3][4] Group 2: Oil Processing and Natural Gas Production - The industrial crude oil processing volume in October was 63.43 million tons, a year-on-year increase of 6.4%, with a daily average processing of 2.046 million tons [3] - From January to October, the industrial crude oil processing volume totaled 614.24 million tons, marking a year-on-year increase of 4.0% [3] - The total industrial natural gas output from January to October was 217 billion cubic meters, reflecting a year-on-year growth of 6.3% [4] Group 3: Electricity Production - The industrial electricity production in October reached 800.2 billion kilowatt-hours, a year-on-year increase of 7.9%, with a daily average generation of 25.81 billion kilowatt-hours [5] - From January to October, the total industrial electricity production was 8,062.5 billion kilowatt-hours, showing a year-on-year increase of 2.3% [5] - In October, the industrial thermal power generation turned from decline to growth with a year-on-year increase of 7.3%, while hydroelectric power grew by 28.2%, nuclear power increased by 4.2%, wind power saw a decline of 11.9%, and solar power grew by 5.9% [5]

Employment Trends - Job gains in health care were offset by job cuts in the federal government [1] - Job losses occurred in mining, quarrying, and oil and gas extraction sectors [1]

Group 1: Coal, Oil, and Natural Gas Production - In July, the production of raw coal decreased, with an output of 380 million tons, a year-on-year decline of 3.8% [2] - The cumulative production of raw coal from January to July reached 2.78 billion tons, showing a year-on-year increase of 3.8% [2] - Raw oil production remained stable, with July output at 18.12 million tons, a year-on-year increase of 1.2% [4] - From January to July, the cumulative raw oil production was 126.6 million tons, reflecting a year-on-year growth of 1.3% [4] - The processing of raw oil accelerated, with July processing volume at 63.06 million tons, a year-on-year increase of 8.9% [5] - Cumulative raw oil processing from January to July was 424.68 million tons, up 2.6% year-on-year [5] - Natural gas production saw an accelerated growth, with July output at 21.6 billion cubic meters, a year-on-year increase of 7.4% [9] - From January to July, the cumulative natural gas production was 152.5 billion cubic meters, reflecting a year-on-year growth of 6.0% [9] Group 2: Electricity Production - Electricity production in July increased, with a total generation of 926.7 billion kilowatt-hours, a year-on-year growth of 3.1% [11] - The cumulative electricity generation from January to July was 5,470.3 billion kilowatt-hours, showing a year-on-year increase of 1.3% [11] - In July, the daily average electricity generation was 29.89 billion kilowatt-hours, with a year-on-year daily average growth of 1.8% after adjusting for the number of days [11] - By type, thermal power generation increased by 4.3% year-on-year, while hydropower saw a decline of 9.8% [11] - Nuclear power generation grew by 8.3%, although the growth rate slowed by 2.0 percentage points compared to June [11] - Wind power generation increased by 5.5%, with an acceleration in growth compared to previous months [11]

Core Viewpoint - California Governor Newsom proposed easing approval permits for local oil extraction in the state [1] Group 1 - The proposal aims to streamline the regulatory process for oil drilling activities [1] - This initiative is part of a broader strategy to enhance local energy production [1] - The decision may impact the state's energy landscape and economic dynamics [1]

Investment Rating - The report maintains a cautious stance on inflation forecasts while awaiting further policy actions [3][19]. Core Insights - The year-on-year Consumer Price Index (CPI) turned positive in June, marking a surprise after four consecutive negative readings, which may indicate potential reflation in China [3][4]. - The Producer Price Index (PPI) deflation deepened unexpectedly, highlighting a divergence in price trends among different sectors, particularly between auto and steel prices [4][19]. - The report emphasizes the importance of supply-side reforms (SSR2.0) and the role of demand in shaping inflation expectations [19]. Summary by Sections CPI Analysis - The CPI reading for June was +0.0% YoY, compared to a prior reading of -0.1% YoY, with a sequential change of -0.1% MoM [3][5]. - Significant price increases were noted in the "other goods and services" category, which includes jewelry, with a +8.1% YoY change [5][8]. - Core inflation rose by +0.7% YoY, with core goods prices increasing by 0.9% YoY [5][19]. PPI Analysis - The PPI reading was -3.6% YoY, contrasting with market expectations of a narrower contraction [4][19]. - The PPI for the auto sector showed stabilization, while ferrous metals and non-metallic minerals reported negative changes, indicating a mixed outlook for SSR2.0 candidates [4][19]. Supply Side Reform Insights - The report suggests that the upcoming Politburo meeting and action plans from relevant ministries will be crucial for future inflation trajectories [19]. - The divergence in price trends between sectors like steel and auto underscores the need for targeted demand-side policies [19].