Recon Technology is the first Chinese, non-state-owned oil & gas services company to be officially listed on the Nasdaq
Rochester, NY -- (ReleaseWire) -- 08/02/2018 --Investor News Source Features How Recon Technology Ltd. (NASDAQ:RCON) Is Benefiting from the US-China Trade War.
Oil prices continue to gain steam in 2018. As of this July WTI crude oil has jumped 16.15% year-to-date (YTD) and experts think it will continue as a result of the developing trade war and national behavior of many nations. While Brent crude has rallied 12.25% YTD the world has seemingly started consuming more than expected. The continued recovery in oil prices will allow petroleum-producing countries to experience economic benefits so what does that mean for companies that are located in China that are seeing the benefits?
One key solution to this problem is utilizing cutting-edge technology to assist with making the oil extraction process more efficient and cost effective. The Chinese government understands this and has been very supportive, through financial backing, to assist with the development of these technologies.
Recon Technology, Ltd. (NASDAQ:RCON) is one such Chinese technology company that has developed solutions for the oil & gas sector.
Overview: Recon Technology, Ltd. (NASDAQ:RCON)
Recon Technology, Ltd. is a Beijing-based provider of software, hardware, and on-site services to companies operating in the oil & gas industry. Recon's wide range of advanced technological capabilities allow energy producers to have greater ability to tap previously unreachable petroleum and gas reserves. Furthermore, Recon Technology's technology allows Chinese energy producers to take advantage of the massive shale oil deposits within the country.
Outside of energy production technologies, Recon Technology, Ltd. also holds an 8% stake in Beijing-based Future Gas Station Technology, Ltd. (FGS). FGS is focused on the research, development, and deployment of smart technologies to aid in streamlining operations and services capabilities for gas stations in China.
Recon may be a relatively new name to retail investors, but the company has some big-name clients in its rolodex. Among the company's main clients include China Petroleum & Chemical Corporation (NYSE:SNP), China National Petroleum Corporation (CNPC), Baker Hughes, Siemens, UniGas, and many more.
Recon Technology is the first Chinese, non-state-owned oil & gas services company to be officially listed on the Nasdaq. Furthermore, their proprietary technologies are backed by eight software copyrights, twenty-two product patents, and four patents pending.
China has been a net-importer of oil since 1983. However, the Chinese government continues to support expanding state-operations in oil & gas in order to cut down on its reliance on foreign petroleum. Furthermore, with heavy air pollution from China's heavy reliance on coal for power & energy, the government has sought to turn to cleaner-burning alternatives.
According to the U.S. Energy Information Administration (EIA), China is home to the world's largest reserves of shale gas with around 1.115 trillion cubic feet. Unfortunately, much of China's oil & gas reserves have reached "tertiary stage" of the recovery process. This means that extraction of oil & gas becomes more difficult and costlier moving forward.
Recent News & Updates:
30th- Recon Technology, Ltd. announces that FGS has officially launches smart vending machine technologies to help further expand retail business and capabilities. Utilizing a rewards-based system, the smart vending technology actually helps incentivize consumers to use the vending machines.
CNPC has a total of 450 gas stations in Zhejiang, across city, high-speed, and village stations. The smart vending machines will roll out across city stations and rural high-speed stations to start, which amounts to around 225 stations in total.
"We are very pleased that FGS has launched its smart vending machines as planned to continue expanding its new retail business. With the further liberalization of China's domestic gas market, major oil sales companies are transforming, developing and innovating the country's gas stations. As part of this evolution, the development of the non-oil segment of gas stations has become a strategic issue for major oil companies. We believe that FGS' smart vending machine model can help China National Petroleum Corporation ("CNPC") quickly improve its non-oil-product segment business development and facilitate the integration of new innovations for gas stations," details Recon CEO, Mr. Yin Shenping.
19th- The Chinese oil & gas technology company announced the completion of its first stage of a planned disposal treatment project in the Gansu Province of Yumen. The project is being managed by its 51% subsidiary, Gansu BHD Environmental Technology Co., Ltd., an oilfield sewage treatment and sludge disposal service provider.
As the company previously announced, Gansu BHD Environmental purchased a 50-year land use right for a 26,235 sq. meter property, which will be home to the oilfield sewage treatment facility. The project will have an annual processing capability of 60,000 tons of waste from the Gansu province. To start, the project will service oilfield sewage treatment needs by the Yumen Oilfield Company and a subsidiary of PetroChina Co., Ltd. (NYSE: PTR).
11th- Recon Technology announces that FGS has entered into a strategic cooperation agreement with JD Finance, the financial tech arm of JD.com, Inc. (NASDAQ: JD). JD.com, Inc. is China's largest online direct sales company. Under the terms of the agreement, gas station customers will be able to refuel vehicles through the JD Finance App, which will have the support and linkage to FGS's platform and database.
Overall, Recon Technology, Ltd. is an exciting Chinese oil & gas technology company that should continue to see increasing demand as China continues to focus on utilizing and producing domestic energy sources. Furthermore, Recon's stake in FGS diversifies its business to the high-growth world of retail and customer service technologies. As the trade war seems to be building, Recon Technology, Ltd. will continue to be a beneficiary of the "China First" policies the government seems to be shifting towards.
US-CHINA TRADE WAR SPARKING INCREASED DEMAND FOR CHINESE OIL COMPANIES:
US oil exports have more than quadrupled since Congress repealed a 40-year ban in late 2015. The stunning growth has helped lift US oil output to record highs and inspired the development of huge export facilities. That export boom is now in danger. China is America's second-biggest crude oil customer, and Beijing has threatened to retaliate against President Donald Trump's trade crackdown by imposing tariffs on US crude oil.
About Recon Technology, Ltd.
Recon Technology, Ltd. NASDAQ:RCON, is China's first listed non-state owned oil and gas field service company on NASDAQ. Recon supplies China's largest oil exploration companies, Sinopec and CNPC, with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measure for increasing petroleum extraction levels, reducing impurities and lowering production costs. Through the years, RCON has taken leading positions on several segmented markets of the oil and gas filled service industry. Companies like Recon, that supply Sinopec Group , the largest oil and petrochemical products suppliers and the second largest oil and gas producer in China, will soon see an increase in volume and sector growth. China's oil demand will remain influential even as the Global market remains oversupplied.
Will countries have to make adjustments if there is a lasting trade War? The answer of course is yes. But those companies who will benefit the most from the nationalism of China and the United States will be those that can provide their own counties industrious demand of oil and steel with services to expedite their self-sufficiency. Recon Technologies is one such company and they're already working with some of chart China's largest oil companies. Is they expand so will Recon and right now in our opinion is the ground floor of a company who will facilitate nationalism throughout Asia as we ourselves look to becoming more self-sufficient and independent country.
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