2010 was a challenging year for China's oil and chemical industry. In the shadow of the fact that the financial crisis has not dissipated, under the multiple games, China's petroleum and chemical industries have made remarkable achievements.
In 2010, the industry’s total output value reached nearly 9 trillion yuan, an increase of 34% compared with 2009. In the first 11 months alone, taxes were paid over 600 billion yuan, a year-on-year increase of 36%. The upstream mining industry has achieved a total output value of trillions of yuan, the middle reaches of the oil refining industry to achieve total annual growth rate of 38%, the downstream chemical industry to achieve total annual output growth rate of 33%.
At present, the recovery of the world economy has been established. The global economic development represented by emerging economies is being formed. Mutual benefit and win-win cooperation and cooperation are becoming the consensus of all countries. The achievements made by China's petroleum and chemical industries are a confirmation of the past and are the basis for future development. Standing at the beginning of the “Twelfth Five-Year Plan”, we examine it with a rational attitude: what is being achieved now, what will it face in the future, and how will it develop?
The world’s second-largest production of ethylene and synthetic resin China’s production of “the first oil well in 1959 and the first ethylene plant in 1976” has reached the second place in the world with ethylene and synthetic resin production.
According to the data released by the Cabinet Office of Japan on February 14, the nominal GDP of Japan in 2010 was 5.47 trillion U.S. dollars, which was 40.4 billion U.S. dollars less than China, ranking third in the world. At this point, China officially surpassed Japan to become the second largest economy in the world.
China's oil and chemical industry contributed to GDP by 8.88 trillion yuan in output value and 34% in annual growth. China’s output of ethylene and synthetic resin ranks second in the world.
In 2010, China's total crude oil processing capacity exceeded 500 million tons, and crude oil processing volume was 423 million tons, an increase of 13.4% over 2009. Ethylene production 14.19 million tons, an increase of 32% over 2009; synthetic resin production 43.61 million tons, an increase of 18.3% over 2009.
The second data that supports the world is that China's petroleum and chemical industries have developed one step at a time. Our country has gone from being the first oil well in 1959 to the first ethylene plant in 1976 to the second place in the world today.
At present, new breakthroughs have been made in China's oil exploration and development, and the pattern of the replacement of the eastern and western regions has basically taken shape. As of the end of 2009, the cumulative proved reserves of China's oil increased by 4.6% compared with 2008.
Resources are the foundation for development. In 2010, China’s oil and chemical industry achieved new results in external cooperation, and companies accelerated the pace of “going global”. In 2010, the total amount of foreign mergers and acquisitions by China’s oil and chemical companies totaled more than US$30 billion.
It is also in 2010 that the implementation of China's "Oil and Gas Pipeline Protection Law" means that China's pipeline construction is more standardized. In 2010, China’s oil and gas pipelines totaled 78,000 km. In September of the same year, the Sino-Myanmar oil and gas pipeline project was started. The completion of the 1,000-kilometer crude oil pipeline of China-Russia oil and gas pipeline marked the formation of a strategic pattern for China's four northwest, northeast, southwest, and offshore energy import channels.
Oil reserves are in reserve in the future. The second phase of the national strategic oil reserve project is expected to be completed in 2012, when the total reserve capacity can reach 274 million barrels. As of the end of last year, China's oil reserves initially formed a reserve capacity of about 36 days of consumption.
The choice of path in front The petrochemical industry has shifted from external demand-driven to domestic demand-based pull.
The "12th Five-Year Plan" period will be the transitional period from the mid-industrialization of China's economy to the late stage of industrialization. The internal structural features of the petroleum and chemical industries will also undergo corresponding changes - the proportion of traditional industries will decline, and high-end and emerging industries will develop rapidly. The quality of economic growth will further increase.
The economic operation of China's petroleum and chemical industries has obvious cyclical characteristics. Since 2003, the industry has entered a new round of rising economic sentiment. In 2008, affected by the financial crisis, the industry economy accelerated to decline. The business cycle of this cycle lasted five and a half years. It is expected that after 2011, with the changes in China's macroeconomic development, the petrochemical industry will shift from being driven by external demand to relying mainly on domestic demand.
The circular economy and low-carbon economy will make full use of resources to achieve a new economic growth mode with coordinated economic, social, and environmental development, which will lead the development of the industry.
Strategic emerging industries will become the new growth point of the industry economy in the future. By 2015, the petroleum and chemical industries should have a more reasonable structure, a more scientific approach to development, and a further increase in their overall strength, and a preliminary realization of the transformation of China's petrochemical industry from a big country to a strong country. New energy, bio-chemicals, fine chemicals, new coal chemical and other new technology revolution areas will be the focus of future industrial development.
Speeding up the development of the central and western regions is a long-term strategy for China's national economic and social development. The central and western regions are rich in natural resources. The oil and chemical industries must make necessary shifts to the central and western regions. This is both an objective reality and an inevitable trend of industrial development.
Weaknesses have become a key support for the development of the industry. The scale of the economy has gone up again, the level of equipment has been continuously improved, the economic structure has continued to be optimized, the efficiency of capital has continued to increase, the overall price increase has moderated, and the export structure has improved.
In 2010, China’s economic scale reached a new level. According to data released by the American Chemistry Council, China’s chemical industry output value exceeded US$770 billion, surpassing that of the United States, and leaping to the top in the world. This is a historic leap in the chemical industry of China. At present, China's petroleum and chemical industries have the output of about 40 products ranking first or second in the world.
China's petroleum and chemical industries have greatly improved their technological equipment. In 2010, a total of 325 projects in the entire industry were awarded the Science and Technology Award by the China Petroleum and Chemical Industry Federation. Among them, a group of original technological equipments have reached the world's leading level.
In recent years, with the increase in industrial restructuring of the entire industry, the structure of economic growth has also undergone significant changes. The proportion of upstream resource-based industries in economic growth has gradually declined, and the proportion of downstream technology-intensive industries has increased. In 2010, the output value of the oil and natural gas exploration industry accounted for 11.4% of the total industry, which was 3.5% lower than in 2008; and the chemical industry's 2010 production value accounted for 60.5% of the entire industry, which was 6 percentage points higher than in 2008.
The growth rate of investment has declined, and the efficiency of funds has been continuously improved. In 2010, investment in the petroleum and chemical industries continued to grow slowly, with an increase of 13.8%. The proportion of investment in the chemical industry continued to increase, accounting for 62.7% of the total industry, an increase of 1 percentage point from 2009. In contrast, investment in the upstream oil and gas exploration sector continued to decline. In 2010, the proportion of total investment in the industry was 22.4%, which was 1.4% lower than in 2009 and about 5 percentage points lower than in 2008.
The overall price increase has slowed down, and the convergence between production and sales has been basically smooth. In 2010, driven by the strong rise in prices of energy and other resource products, the total price level of the petroleum and chemical industries rose by 16.1%. Among them, the chemical industry rose 7.4%; the oil and gas mining industry rose the most, the annual increase was 38%; the refining industry was 18%. From the perspective of the overall industry price trend, the overall increase gradually slowed down. The overall industry production and sales convergence is relatively smooth, and the product sales rate is 98.3%.
Foreign trade has grown substantially and the export structure has improved. In 2010, in the complex world economic environment, foreign trade in the petroleum and chemical industries continued to make significant progress with frequent international trade frictions and trade protectionism. The total import and export volume increased by 40.3%. Among them, the share of resource-based products such as rubber products and inorganic chemicals in the export trade is declining, while the proportion of products with higher technological content such as specialty chemicals is rising.
High Speed ​​Development "Unbearable"
The money for buying 1 ton of natural rubber in November 2009 was only half a ton in November 2010. In February of this year, it could only buy 0.4 tons.
In 2010, although China's petroleum and chemical industries made great progress, they still faced problems such as the sharp rise in industry costs, the rapid rise in raw material prices, the arduous task of structural adjustment, the unbalanced regional economic development, and overcapacity in some industries.
Industry costs have risen sharply, and raw material costs have risen too fast. From January to November 2010, the average increase in the cost of sales of the petroleum and chemical industries reached 35.3%. The overall increase in raw material prices in the industry was relatively large, especially for rubber products and synthetic fiber monomers.
According to Zhu P, deputy director of the Information and Marketing Department of the China Petroleum and Chemical Industry Federation, “There are three main factors that cause rapid price increases: First, rising costs, second, increasing demand, and third, market speculation.”
Data show that in November 2010, natural rubber prices exceeded 30,000 yuan / ton, up 72.5% year-on-year, on February 9 this year, the price rushed to a record high of 4,350 yuan / ton. In other words, the amount of money to buy 1 ton of natural rubber in November 2009 was only half a ton in November 2010. By February of this year, it was only able to buy 0.4 tons. In November 2010, the price of caprolactam was 23,600 yuan/ton, which was an increase of 5,400 yuan per ton from the beginning of the year, an increase of 35% year-on-year.
The task of structural adjustment is arduous. In recent years, although the structure of economic growth in the oil and chemical industries has continued to be optimized, economic growth is still based on high consumption and high costs. The proportion of high value-added and refined products remains low, and the average raw material products of high energy-consuming basic materials Energy consumption is 15%-20% higher than the international advanced level.
Regional economic development is uneven. The petrochemical economy in the central and western regions of China still has a large gap compared with the eastern region. In 2010, the proportion of petrochemical production in the eastern region accounted for 66.9% of the total industry, which is twice that of the central and western regions.
Some industries have excess capacity. In 2010, China's urea production capacity was 34 million tons, which exceeded domestic demand by 30%; China's 47% of tire production needs to be exported; excess production of caustic soda and soda ash is over 20%.

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