Chapter 27 24. Petroleum industry

In terms of oil industry, China has made great progress in the past fifty years. China is a major producer of oil: it ranks fifth among the world's major producers. China's oil production increased to 160 million tons in 1999, but in 1949 when the People's Republic of China was founded, the figure was only 120,000 tons. China has 2,000 refineries, of which 85 have an annual output of about 4.7 million tons. In addition, in western China, new oil and natural gas deposits have been proven, and the estimated reserves will reach 100 million tons.So far, China has established four oil regions, mainly located in Northeast China, the Bohai Rim and Western China.

But due to the incredible speed of development, China's oil consumption has increased by 4 times in 25 years! We have witnessed the rise of China's two largest oil companies: first, PetroChina (which accelerated to No. 1 in 2011, following Exxon Mobil in 2010), and then Sinopec. In the world capital market, China's oil companies, like the Bank of China, once again demonstrated the strength of the world's largest enterprises. There are many cases of foreign mergers and acquisitions of Chinese oil companies.Chinese oil giants China National Offshore Oil Corporation (CNOOC), PetroChina and Sinopec are all taking strategic steps to deal with globalization.

Top 10 Major Oil Companies in 2010 Ranking companies by country market capitalization 1. Exxon Mobil US $29.1 billion 2. PetroChina China ↑ 2806.9 billion US dollars 3. Shell Netherlands $1,652.9 billion 4. Petrobras Brazil $1,546.4 billion 5. Chevron US $486.5 billion 6. Gazprom Russia $1,207.1 billion 7. Total France $1,137.3 billion 8. Sinopec China ↑ 1004.9 billion US dollars 9. BP UK $943.7 billion 10. ConocoPhillips US $810.5 billion Despite limited resources, China remains the world's second largest oil importer.China's demand for energy raw materials, especially oil demand, is growing rapidly.Therefore, energy resource strategy and resource transportation security are the top priorities of China's diplomacy.

In competition with Western countries and its Asian neighbors, China has encouraged cooperation with Russia and Central Asia in oil and gas exploration to ensure that its procurement needs are met. The oil pipeline connecting Northeast China and the Russian Far East has been in operation since early 2011.On the day it was first put into use on January 1, 2011, this new Sino-Russian pipeline was able to transport 42,000 tons of crude oil to China.The total length of the pipeline is 927 kilometers, 72 kilometers of which are in Russia, and the rest are in China.This oil pipeline with a total length of nearly 1,000 kilometers can transport 15 million tons of crude oil from Russia to China every year.

Even if China is very courteous about Africa, where producers supply 10% of the world's crude oil, and the West is concerned, China's interests are much smaller than those of the West. In the international competitive game, Africa has become a veritable warehouse of raw materials.But if China needs African black gold, this is also a market for Chinese goods to export. China's financial support for various infrastructure projects in Africa and its assistance to Africa's development have made China-Africa cooperation truly a win-win situation.China also invests in oil!