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According to annual data provided by the Shaanxi Provincial Petroleum and Chemical Industry Management Office, Shaanxi Province produced 9,947,500 tons of crude oil last year, a year-on-year increase of 15.85%; crude oil processing volume was 15,660,300 tons, an increase of 14.24%; methanol production was 9,619,700 tons, an increase of 27.54 %; caustic soda 290,200 tons (off 100%), an increase of 33.13%; 1.999 million tons of calcium carbide, an increase of 52.18%; PVC 246,700 tons, an increase of 47.84%. However, the output of synthetic ammonia was 1,405,600 tons, and agricultural chemical fertilizer was 1,049,700 tons (100%, including 950,000 tons of urea, 331,100 tons of ammonium nitrate, and 616,100 tons of phosphate fertilizer), which fell by 3.47% and 2.29% respectively. The petroleum and chemical industry completed a total industrial output value of 153.216 billion yuan, an increase of 23.43% over the same period of last year. The profit ranks first in all industries in Shaanxi Province. The major economic indicators such as industrial output value, industrial added value, and product sales revenue all set record highs.
It is not difficult to see that as a province of resources and energy, the oil industry of Shaanxi Province is in an absolutely “controlled†position. It owns both the “Central Army†of the Changqing Oilfield Company and the “local forces†of the extended oil group. In 2007, the crude oil output was 1984.75 million tons, becoming the fourth largest oil-producing province in the country after Heilongjiang, Shandong, and Xinjiang. Last year, the province's oil industry completed a total output value of 139.279 billion yuan, accounting for more than 90% of the petroleum and chemical industries. The chemical industry chain is relatively short, and it has formed a long-term, inherent "head and tail" feature.
In recent years, under the constant adjustment of product structure and market demand, this situation is quietly changing. Propylene, methanol, dimethyl ether, PVC and other new chemical products have emerged, and their market share has gradually increased.
According to analysis by the relevant person in charge of the Shaanxi Provincial Banking Office, under the background of a year-on-year increase of 10.2% in fertilizer production in 2007, the output of chemical fertilizers in Shaanxi Province has decreased by 3%. This is in line with the increase in product mix adjustments made by chemical fertilizer manufacturers, and they are keen to synthesize ammonia. For methanol-producing chemical projects, it is not unreasonable to evade the operating risk of chemical fertilizers alone. For example, Suihua Group's co-alcohol and dimethyl ether projects were put into operation last year, with a cumulative production of 128,000 tons of methanol and 7,500 tons of dimethyl ether. The output value accounted for 27% of the company's total output value, and profits accounted for more than 40%. At present, six nitrogen fertilizer companies in Shaanxi Province have methanol production capacity, together with methanol production enterprises such as Lutianhua and Shenmu Chemical, and in 2007, methanol production ranked the fourth in the country with 9.6 million tons.
In fact, despite the decline in chemical fertilizer production in Shaanxi Province due to the support of chemical products, the economic benefits of fertilizer companies last year have not been affected, but the output value and profits have increased.
In addition, the market demand can not be overlooked. It is understood that more than 60 domestic fertilizer companies have built new methanol plants, accounting for 25% of the country's methanol production companies, and production capacity accounts for nearly half. Heilongjiang Heihua Group, Shanxi Fengxi Fertilizer Group and other fertilizer production companies have plans to launch a large methanol project. Fengxi Fertilizer Industry plans to form an annual output of 3 million tons of urea and 2 million tons of methanol by the end of the “11th Five-Year Planâ€. And the scale of the downstream derivatives. It appears that this is the result of a strong market demand for new alternative energy products for alcohol ethers. The dramatic increase in production of caustic soda, calcium carbide, and PVC is entirely due to strong demand in the alumina, building materials, and plastics markets, driving the chlor-alkali industry to maintain rapid growth.
In 2007, the output of major petroleum and chemical products such as crude oil, methanol, caustic soda, calcium carbide, and PVC, which were more than a dozen key dispatches, increased significantly, but the output of chemical fertilizers fell for the first time. Analysis of the industry, this is the inevitable result of product structure adjustment and market demand stimulation.