Executive Summary 7

SWOT Analysis .9

Taiwan Economic SWOT . 9

Taiwan Political SWOT ... 9

Taiwan Business Environment SWOT 10

Taiwan Energy Market Overview 11

Global Oil Market Overview .....12

Table: Global Oil Consumption (000b/d) . 13

Table: Global Oil Production (000b/d) ..... 14

Oil Price Outlook ...15

Waiting For A Correction ... 15

Table: Crude Price Assumptions 2007/08 . 16

Revised Forecasts ...... 16

Table: Oil Price Forecasts ...... 17

Regional Energy Market Overview 18

Oil Supply And Demand ...... 18

Table: Asia Pacific Oil Consumption (000b/d) .. 19

Table: Asia Pacific Oil Production (000b/d) ..... 20

Oil: Downstream 21

Table: Asia Pacific Oil Refining Capacity (000b/d) .... 21

Gas Supply And Demand .... 22

Table: Asia Pacific Gas Consumption (bcm) ..... 22

Table: Asia Pacific Gas Production (bcm) . 23

Liquefied Natural Gas 24

Table: Asia Pacific LNG Exports/(Imports) (bcm) ...... 24

Business Environment Ranking 25

Asia Pacific Region 25

Composite Scores .. 25

Regional Upstream Business Environment Rating ...... 26

Regional Downstream Business Environment Rating . 27

Upstream Scores ... 27

Downstream Scores 28

Taiwan Upstream Rating – Overview 28

Taiwan Upstream Rating – Potential Returns .... 28

Taiwan Upstream Rating – Risks to Potential Returns . 28

Taiwan Downstream Rating – Overview ... 29

Taiwan Downstream Rating – Potential Returns . 29

Taiwan Downstream Rating – Risks to Potential Returns.... 29

Business Environment 30

Legal Framework 30

Infrastructure.. 31

Labour Force.. 32

Foreign Investment Policy .. 33

Tax Regime . 34

Industry Forecast Scenario .36

Oil and Gas Reserves . 36

Oil Supply and Demand ...... 36
Gas Supply and Demand ..... 36
LNG 36
Refining and Oil Products Trade . 37
Revenues/Import Costs . 37
Table: Taiwan Oil & Gas – Historical Data & Forecasts ... 38
Other Energy . 38
Table: Taiwan Other Energy – Historical Data & Forecasts .... 40
Key Risks to Forecast Scenario .... 40
Macroeconomic Outlook .....41
Table: Economic Activity 43
Regional Case Study ..44
Gazprom In The Asia-Pacific Region . 44
Competitive Landscape ......47
Executive Summary 47
Table: Key Players Taiwan Oil & Gas Sector ... 48
Overview/State Role ... 48
Table: Key Upstream Player ... 49
Table: Key Downstream Players ..... 49
Company Monitor ..50
Chinese Petroleum Corporation (CPC) 50
Formosa Plastics Corporation ..... 55
NPC – Summary ... 57
Tung Ting Gas – Summary ..... 57
Shell – Summary ... 57
ExxonMobil – Summary . 57
Glossary of Terms .58
Oil & Gas Ratings: Revised Methodology 59
Introduction 59
Ratings Overview 59
Table: BMI Oil & Gas Business Environment Ratings: Structure 60
Indicators . 61
Table: BMI Oil & Gas Business Environment Upstream Ratings: Methodology 61
Table: BMI Oil & Gas Business Environment Downstream Ratings: Methodology .. 62
Oil & Gas Outlook: Long-term forecasts ..64
Global Oil Demand 64
Global Oil Demand (000b/d) .. 64
Global Oil Production (000b/d) 65
Global Oil Supply ...... 65
Global Gas Demand .. 66
Global Gas Demand (bcm) ..... 66
Global Gas Supply ..... 66
Global Gas Production (bcm) . 67
Regional Oil Demand 68
Asia Pacific Oil Consumption (000b/d) .... 68
Regional Oil Supply ... 68
Asia Pacific Oil Production (000b/d) . 69
Regional Refining Capacity 69
Asia Pacific Oil Refining Capacity (000b/d) ...... 70
Regional Gas Demand . 70
Asia Pacific Gas Consumption (bcm) 71 Regional Gas Supply .. 71 Asia Pacific Gas Production (bcm) .. 72 Taiwan Country Overview .. 72 BMI Forecast Modelling ......73 How We Generate Our Industry Forecasts .... 73 Energy Industry 74 Cross checks ... 74 Sources .... 74