Three oil majors market status and advantages

Three oil majors market status and advantages

January 15, 2010/Dong Xiucheng

At present, according to scale of enterprise ownership and market development and other factors, China's oil market players can be grouped into four categories: three traditional oil group, emerging State-owned oil company, private oil companies and foreign-owned oil companies.

At present, the Group of three traditional petroleum (petroleum, in Sinopec, CNOOC) as a national oil company, still occupies a dominant position in the domestic oil market.

Despite the competition in the market, there are three oil Group mutual length, but CNPC on the resource quantity, occupy an absolute advantage. PetroChina registered oil and gas blocks in the country, with 67%, Sinopec, and only 22%, other for Sea oil in all. Reserves of petroleum have extensive, so it's more flexible in terms of long term capital investment, especially in a downturn in oil prices reflected more clearly.

Compared with PetroChina, Sinopec upstream relative shortage of resources and do not have the advantage. However, Sinopec's position in the downstream business par with China's position in the upstream business, among the best in the world. Sinopec, Asia's biggest, currently the world's fourth largest oil refining company. With more than national 80% refinery of Sinopec, China sour crude processing base (zhenhai, Maoming and qilu, and Jinling) are all affiliated subsidiary of Sinopec. In addition, by virtue of its monopoly advantage of Sinopec more while refining and chemical enterprises, also because of their lower refining and sale of strong strength in retail areas occupy a larger share of oil products.

Compared with PetroChina and Sinopec, CNOOC, a late start. Currently, CNOOC, China's offshore oil industry dominated, great growth potential. As CNOOC owns and franchises of foreign cooperative exploitation of offshore oil and gas resources, making it stronger market position. Through international cooperation for the development of offshore oil and gas resources in China, CNOOC gained international standards of offshore oil and gas exploration and development technologies, as the deepening of the cooperation, CNOOC expanding areas of cooperation, from the upstream development to the downstream, from entering the field of financial services in the field of production, and effective use of international capital, and from domestic to abroad. However, as crude oil exploration and mining is the main industry of the upper reaches of the pure company, CNOOC in crude oil output relative to PetroChina, Sinopec disadvantage. CNOOC to build the framework of the transnational corporations, the implementation of the management system reform, reform of distribution system of enterprise labor, personnel, and provide places for workers, stimulate the enthusiasm of the workers, increasing the vitality and competitiveness of enterprises is an important initiative, also established obstacles to the reform of State-owned enterprises. CNOOC in three system reforms introduce a competition mechanism, form Manager nengshangnengxia, staff can be hired out, income can be increased or reduced mechanism of thought and practices, in terms of manpower resources allocation, marketization and internationalization has been basically achieved.

Three major companies in competition with each other, their respective advantages gradually: PetroChina relies on rich resources, by virtue of the monopolistic advantages to earn high profits; Sinopec taking long marketing channels, while in the consolidation of the downstream market, strengthen cooperation with foreign and "separatist" marine oil in the sea, with a good international image, efficient management system, unique international petroleum community.

Other State-owned enterprises and private oil companies will be more growth

Other State-owned enterprises and private oil companies will be more growth

January 20, 2010/Dong Xiucheng

At present, China's oil market diversification pattern has been initially built among three major oil groups occupy an important position, and some other State-owned enterprises and private oil companies already have their place in the oil market at home and abroad, is expected in the future is expected to rapidly to oil upstream, such as oil refining, ethylene and aromatics and PTA, and other fields, as well as import and export of crude oil and oil products and warehousing business.

These emerging market will gradually become an important component of China's oil market, enterprise has been expanding, involved in gradually broadened in the field, competition ability gradually enhanced.

Since its accession to the World Trade Organization in China, emerging a number of policies, especially in terms of market access for products introduced measures for the management of the crude oil market and the administrative measures on the oil products market, from a legal point of view has changed over the past two oil group to market the main policy to allow other State-owned enterprises and private enterprises involved in traditional oil field, started stressing the cultivation and development of diversified market.

For other State-owned enterprises and private oil companies in China, is a very good policy environment and development, are important for their future development.

Total energy consumption must be "hard constraints"

Total energy consumption must be "hard constraints"

March 22, 2011/Dong Xiucheng

A long time, the national energy policies focus on energy supply, do everything possible to open up the energy channels and the development of sources of supply, to ensure the achievement of national economic development objectives. This is a to meet consumer demand as the direction of energy policy, as well as traditional planned economy energy "in balance" ideological continuity.

For now, this should change the traditional thinking, because economic growth is a reflection of the desire of the people increased, and the desire is infinite, resulting in economic growth targets is infinite. Economic development in China in past decades, due to the emphasis on economic growth is "the last word", especially the overemphasis on GDP to the neglect of economic quality, therefore in energy policy-making will inevitably be open source in the first place.

In theory, using a limited energy source to meet the human desires of unlimited or infinite economic growth is not able to do, so we have to change ways of thinking on energy policy, that is to change the traditional open source ideology, turn the throttle.

Therefore, for the realization of scientific development and steady economic growth, countries must develop in the future development strategy and planning rigid indicators of total energy consumption, implement hard constraints of energy consumption.

"25" period, the countries have set targets for energy efficiency, use per unit of gross domestic product (GDP) to calculate the energy consumption, but did not set a hard target, so performance is not satisfactory.

To sustain economic growth and sustainable development in China, energy is the key, it involves economic quality, design of greenhouse gas emissions, related to economic restructuring, involving the transformation of economic growth mode, involving quality of life of ordinary people, so control is a total energy consumption affects various aspects of the major problems in the economic field.

Economic growth needs

And sustainable development, energy consumption hard constraints is difficult to avoid.