Private youqi: fourth power float out?

With 11 Dec 2004 product retail market opened up to foreign investments, with a deadline around new product oil business interest pattern emerging. In this new interest pattern of game, private oil companies in the face of the enemy "," inside and outside can become PetroChina, Sinopec and CNOOC's fourth power?

11 Dec 2004, petroleum retail market opening to foreign investment. Already subject to PetroChina, Sinopec two large group-owned oil company, now face the foreign capital. In the oil business new interest pattern of the game, the development of the private oil will be smooth sailing? their development prospects?

Oil life robbed

In 2004, on private oil companies, is unfair in one year. 2 August, the Commission introduced in Heilongjiang province Heilongjiang sales and use of ethanol gasoline management approach (draft) (hereinafter referred to as the "rules"), from 1 October 2004, Heilongjiang province in the territory of only sales and use of ethanol gasoline, ethanol gasoline only from oil sales company transferred in Heilongjiang province, any enterprise sales do not allow the provisioning of sales. This article came out, immediately met with local private youqi boss dissatisfaction, agreed that the provisioning of ethanol gasoline only to petroleum, this private youqi very unfair. In the past they were also able to oil petrochemical into, and now can only rely on oil. In fact, the "private day suffering youqi" is nothing new today, starting in 1999, private youqi days every day. At that time because of the oil product market competition of unordered, seriously affecting the normal market supply. But this kind of disorder competition over the past few years there has been no interruption. According to incomplete statistics, from mid-2003, continuing the "out" has made the country more than 80 percent of private youqi is discontinued or half cut off state because there is only one: two large group not to oil. In the absence of oil, gas stations owned by private enterprises are usually from petroleum, petrochemical hands at a higher price to buy oil, out of gas, even in the absence of the oil. In PetroChina, Sinopec, including shell, BP, and some transnational oil Giants established joint retail Terminal controversy, private enterprise has been an unfair and discriminatory market environment difficult to earn a living. According to Heilongjiang province Petroleum Association statistics, three Northeast provinces for oil possesses the qualifications of 38 private oil wholesale enterprises with total assets of $ 3 billion, the amount of warehouse and 55 million tonnes, 3 million workers, with over 4000 private stations, three Northeast provinces oil product market of private assets total more than $ 20 billion. But as much oil monopoly, these enterprises are operating conditions are already on the verge of bankruptcy. Due to two large group monopoly oil product market resulted in 38 private enterprises are facing bankruptcy, a few days ago, the three Northeast provinces private oil companies jointly issued to Premier Wen Jiabao has called for help. According to the sponsors of this letter: Heilongjiang province Petroleum Association President Zhao Yu Shan, Wen Jiabao Premier of the letter written instructions: hurry to petroleum system reform. In fact, back in May 2003, in charge of energy work Vice Premier Zeng Peiyan has three Northeast provinces private enterprises of oil-problems for specialized instruction. Zeng Peiyan stressed, "there must be a fair market, regardless of the State-owned or private enterprises to alike. Two large group cannot use monopoly position to engage in unfair competition. "Zeng Peiyan instructions, national development and Reform Commission has also been in October 2003 to solve the oil under file and in the three provinces in Northeast China's private oil companies; oil contradictions in 2004 21 January, the Office of development and Reform Commission, ask again sent a letter to seize oil in Northeast sales company and supervise the Heilongjiang sales company strictly enforce the requirement, to the Northeast local oil wholesale enterprises normal fuel supply. But according to Heilongjiang province-run petroleum wholesale business leaders reflect the document issued, petroleum sales company in Heilongjiang Province remains, as always, and not making improvements. But starting in the autumn of 2004, the ethanol promotion, makes these private oil companies operating conditions. Due to the provisioning of ethanol gasoline to concentrated in the hands of petroleum, oil more subject to petroleum.

Seeking a way out

It is understood that similar problems in other provinces also exist in different degrees. To solve the difficult problem of oil monopoly, 2004 December 12th, and Director of the Energy Council held a national forum on oil and gas industry entrepreneur. At the meeting, many private business leaders urged to change the oil industry in the present situation of monopoly. "As an important complement to the oil market, private oil industry for China to play an active role in energy security. Breaking trade monopolies, in domestic oil field was the ' right ', is imperative. "Xiamen sea o group co., Ltd Cheng Jinquan with respect. "In accordance with current regulations, its source is affected by the three major oil companies control. But as our ancestors left behind by the oil and gas resources, regardless of the State-owned enterprises and private enterprises, from a legal point of view should be jointly owned. "The day the Group Chairman Gongjialong considers private petroleum and the State-owned oil companies have fair market competition environment. More private oil companies feel difficult is that, with 11 Dec 2004 the third anniversary of China's accession to the WTO, China from the day of open oil retail market, it also means that the foreign oil companies can be owned in China Petroleum retail. And, on the eve of the opening, the United Kingdom France total oil company, BP Group and Sinopec joint construction of a gas station. One reason is that the joint venture will help directly with foreign oil companies into long-term supply contracts will help the development of its retail Terminal. This also means that it has only been allowed into downstream retail terminal for private enterprises of oil, will be more difficult to be guaranteed.　　 Private oil companies to seek a way out. Break the monopoly of the ice

It is worth mentioning that after six years of quietly preparing, a privately owned more than 50 corporate member of the Civil Chamber of Commerce-National Association of oil and the oil industry Merchants Association (hereinafter referred to as petroleum Association) in 2004 was born on 11 December. But the most

Initial establishment of the motive power of the oil Chamber of Commerce, from day group. In August 2003, as the first oil licences of the private business days from the day the group shares needed capital expansion, and the Bank only to 2 billion — a $ 300 million loan; oil indicators from the oil companies in North China, each year only 80 million tonnes of quota. Agitated, tianfa co. thought oil industry Fund was established to address the Group's capital, thirst and source of the trouble. This organization was founded, to break the existing monopoly on oil industry can play a catalytic role? "at present oil Chamber of Commerce is pushing forward on two aspects: firstly for national policies on existing petroleum industry is adjusted to the private oil companies more space for development. Secondly, and PetroChina, Sinopec to speed up communication and foreign oil exporting countries enhance liaison, striving for more space. "Oil Chamber of Deputy Secretary-General Wang Kong on Petroleum Association will play a role with confidence. The reality is, PetroChina, Sinopec and CNOOC's three major oil companies on the market, with no competition between them, breaking the monopoly of the pattern in the oil industry is the introduction of competition. "Oil industry needs more enterprises to enter the oil industry to more competition. "Economists Sheng Hong believes that" somehow deal with the existing structures for vertical split, is about oil and gas production, transportation, processing and sales of stage into different enterprises. "Expansion solutions

"Oil Chamber of Commerce established a direct purpose, is the use of this platform, Chamber of Commerce in the funding of nearly $ 10 billion to build the petroleum industry Fund. More than 50 private youqi want oil Chamber of Commerce aggregation billion funds into overseas, get more oil. "At the same time as the oil Chamber, Chamber of Commerce Gongjialong revealed that the next step will be a joint member companies in Hong Kong and overseas registered a petroleum industry Fund, sentiment in the Middle East into petroleum upstream industry. According to statistics, along with the progressive liberalization of oil product market, with foreign oil giant BP, shell, enter our market. But China's enterprises in addition to the largest oil and petrochemical enterprises, due to funding constraints, there is almost no step out to oil exploitation and cooperation. Petroleum industry Fund just solve a difficult problem. Industry experts believe that private enterprises into petroleum upstream industry, in order to increase profit margins will continue to develop in accordance with the industrial chain, that is involved in exploration and development, from overseas to crude oil, refining and chemicals in domestic completed; the establishment of oil product sales channels, to consolidate its market position, and then further establish its own domestic and overseas production base. "Oil exploration and drilling, the great risk. But it is a high risk, high reward, you need to have strong financial resources in order to enter. So get oil industrial investment fund, the idea was right. But investors should note that here the risk is very high. If you want to invest into the River, such as petrol stations, although the final consumer is stable, but does not have its own oil, there will be upstream supply risks. "Sheng Hong accordingly considered. These years, the State-owned oil companies abroad looking for resources. Because oil is a strategic resource, oil-producing countries are usually very sensitive to the State-owned enterprises, is afraid of being foreign government control, three major State-owned petroleum company identity in foreign oil exploitation suffered some setbacks. As of 2005 China to imports of oil equivalent to 50% of the oil demand, the high demand in the face of new, State-owned petroleum company currently cannot be fully satisfied. New requirements for private oil companies bring new space for development. "As my only three oil producing enterprises, they right in domestic transport from the production to the sales monopoly status, more comfortable, to look for resources in foreign countries is not enough power. Unlike private enterprise, the dynamic is very strong. So private enterprise that new power was the development of space. "Very optimistic about the future Sheng Hong private petroleum enterprise development prospects.