China Oil

By: EconomyWatch   Date: 30 June 2010

About The Author

EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

EconomyWatch, Content Team

 

  • Dot Div
  •      

Enormous expansion has triggered remarkable progress in the China oil industry. This progress has spanned five decades. In the 1940s, Chinese oil production was a mere 90,000 tons. By 2001, it had ballooned to a staggering figure of 160 million tons. In 1978, China joined ranks of the world’s top oil producers as it came out of its international isolation. This further led to the discovery of more oil fields in northwest China, Bohai Sea and the South China Sea. China’s major oil fields are Daquing, Shengli, Liaohe, Xinjiang and Sichuan.

China’s 11th Five Year Plan (2006-2010) spans ambitious pipeline projects, such as Duzishan-Shanshan, Sino-Russia crude oil pipeline, Rizhao-Yizheng and Shikong-Lanzhou.In March 2009, the China National Petroleum Corporation (CNPC) announced the start of the largest pipeline of Lanzhou-Zhengzhou-Changsha.

Main China Oil Companies

The ‘famous five’ players in the China oil industry are:

  • China National Petroleum Corporation.


  • China Petroleum and Chemical Corporation.


  • China National Offshore Oil Corp.


  • Sinochem Corporation.


  • Shaanxi Yanchang Petroleum (Group) Co. Ltd.

A 2009 report by the China Petroleum and Chemical Industry Association (CPCIA) indicates that these companies witnessed 13.2 percent increment in profits in March 2009 compared to that of March 2008.

China Oil Industry: Prospects

Despite ambitious plans and expansion, the Chinese oil industry is grappling with a decline in industrial value and sales revenue for the first time in a decade. The CPCIA report states that the value of China’s oil industry dropped 1.26 trillion yuan, or 14 per cent, in the first three months of 2009, compared to that of 2008. It is estimated that China’s petrochemical industry is poised to undergo similar difficulties in the second quarter of 2009.

Leading companies such as the China National Offshore Oil Corporation and China National Petroleum Corporation contradict these estimates. Their endeavors are to increase their potential and secure more overseas investments.


  • Dot Div
  •      

Most Popular in China Economy

Related Links
blog comments powered by Disqus