By Xu Wei & Zhang Liang, Research Team on "Reform of Oil Circulation System under the New Circumstances in China" of DRC

Research Report No 53, 2015 (Total 4738)

Abstract:

China's three oil giants are approaching transnational petroleum corporations in terms of both asset and income in recent years and their production and management efficiency has also witnessed some improvement. However, in view of production efficiency, service ability and financial performance, domestic petroleum corporations still have a long way to go to catch up with major transnational enterprises. To be specific, they are facing the following problems: specialization and unit labor productivity need to be enhanced, diversified development strategy need to be developed, the market for import of refined oil or crude oil should be opened and utilization of domestic refining capacity need to be strengthened. Besides, competitiveness of downstream industries is weak and management efficiency falls far behind foreign peers. To promote competition between petroleum enterprises, some monopoly should be broken and circulation system should be further reformed, thus overall competitiveness of petroleum industry could be raised, the market of oil products and service could be expanded and the management efficiency and financial reward of State-owned petroleum corporations could better be enhanced.