State-owned oil giants challenge private oil companies to break monopoly

BCC Beijing March 11 News According to the Voice of China "news" 7:17 reported that the efforts to break the crude oil import restrictions of private oil companies and to firmly control the right to import the state-owned oil giants finally encountered in the "two Sessions", and launched a close battle, around the import and use of crude oil debate. In a recent proposal submitted to the CPPCC, the State Council suggested that some non-state-owned imports of crude oil should be allowed to circulate freely, allowing compliant local refiners to import their own crude oil.　　Chinese voice reporter Wang last night. Wang: The Chinese Federation of Commerce and Industry in the "two sessions" for PetroChina, Sinopec's import oil monopoly rights proposed a motion, proposed to liberalize the import restrictions on crude oil, allowing the import of crude oil in the market circulation.　　The current provisions are, PetroChina, Sinopec Enterprises outside the system, if you want to import crude oil must be issued by the two giants to prove it, so that private enterprises want to import oil very difficult, because the actual operation process, the two groups generally will not give proof to others.　　The current proposal of the Federation of Industry and Commerce is to hope that the import of crude oil can break this rule, and import crude oil to some local refineries for their own processing and sales, of course, these refineries must be formal legal. The National Federation of Commerce has also found that the current state-owned crude oil import qualifications of the 22 companies, the national background accounted for more than half, including PetroChina, Sinopec registered companies under the name. According to the statistics of 2010 China's non-state trade import quota of crude oil is 25.3 million tons, accounting for only 2009 total imports of 13%. As of the end of 2009, the total number of local refineries in our country total 95, the total refining capacity is 93.05 million tons/year.　　In recent years, China's crude oil prices are high, the delivery is at a loss, operating rate of less than 30%, equipment idle serious. It can be seen that the proposal pointed to the domestic two major oil giants PetroChina, Sinopec's oil import monopoly. In the face of the proposal of the National Federation, the relevant departments to cancel the "non-state crude oil quotas can only be used in PetroChina, Sinopec refinery processing, not to supply local small factory" provisions, Sinopec Jinling Petrochemical Company chairman,　　Zhang Dafu, the party secretary, said in an interview with China's voice news editor last night: "We should continue to adhere to the existing oil trade control policies to ensure national oil security." Zhang Dafu: Of course they have the right to raise this opinion, but I think it's just opinion.　　From the point of view of protecting China's resources, from the point of view of energy saving and emission reduction, we think we must adhere to the national supervision, maintain the existing practices and ensure the safety of national resources and energy. Obviously, the National Federation of Private Enterprises and the two big oil giants attitude is "confrontation." So is the oil trade regulation policy to ensure national oil security?　　If so, what are the reasons? Zhang Dafu: If the market open up, a lot of business units to do, will cause the international market disorderly competition, the most typical is the Chinese iron ore imports, can be worth our reference. Without a good supervisor,Tube and control, the future import of crude oil is the situation of iron ore imports, this is one.　　Second, from the perspective of saving resources, energy saving and emission reduction and reasonable utilization, if the import enterprises are put in a lot of difficulties, the state's supervision will be further increased, and the flow of imports will be difficult to control. We know that there are still many local small refineries, these small refineries are now very active, although the national reorganization of small refineries for a long time, it is still not dead, the enthusiasm of the place is very high. If imports are liberalized and more channels are imported, the import of crude oil is likely to flow to small refineries.　　The level of technology, equipment and energy saving and emission reduction of small refinery is obviously a big gap compared with the big refinery, which will cause waste of resources and environmental pollution in energy consumption and emission. So I think it's very bad.　　Based on these considerations, we hope that the State can adhere to the regulation of crude oil imports to ensure the safety of our national energy resources, this is my basic point of view. Wang Xiaofeng, deputy director of the Ministry of Industry Development of China Petroleum and Chemical industry, said in an interview, "all interest groups stand in their own perspective on this issue, it is difficult to determine which proposal is more conducive to the development of the petrochemical industry, it is not possible to identify who is good or bad." "What kind of measures will the government departments take next, depending on the final outcome of the game?" Last year, China imported more than 200 million tons of crude oil, of which Sinopec Group accounted for about 70% of crude oil imports. The foreign dependence on crude oil imports reached 51.2% per cent and is expected to increase further to around 65% in 2015.　　At present, although China's crude oil imports continue to increase, but in the international crude oil market still does not have the international oil pricing power. So, in the end, what makes our country still unable to participate in international oil pricing effectively after becoming an oil import power? Is it expensive or cheap for Chinese people to use oil? How to solve the relationship between national oil security and open market?　　Han Xiaoping vice president of China Energy Network.　　Moderator: Whether the abolition of "crude oil non-state trade quotas can only be used in PetroChina, Sinopec refinery processing" is an old topic, then, why the two sessions this year, we have seen private oil companies and state-owned oil giants public debate? Han Xiaoping: Recently, I have been mentioning that some monopolistic industries are open to private enterprises, especially in this report on government work, which I think is a major inducement.　　Private enterprises, private oil companies have long been hoping to have more space for development, all the previous oil is relying on two major companies to import, but also caused the private enterprises in the downstream difficult to develop. As a matter of fact, all the consumers have not benefited much from the monopoly of the two big companies until today. Because all of our oil prices are in accordance with the highest international prices, so private enterprises believe that the entire public opinion, the market is supporting them. Recently, because of the price reduction of private enterprises, but also the oppression of the two companies have to reduce prices, so it also creates a good environment for diversification of competition. Therefore, we think that the market can still better solve China's oil supply AnnWhole problem.　　Moderator: You think the introduction of competition, open up the market, people can get much benefits? Han Xiaoping: So far, all we see can drive, promote this price is a diversified pattern, such as a large number of private enterprises in the price reduction, a large number of Sino-foreign joint ventures in the price, push up the oil, Sinopec forced to reduce prices.　　I think the diversification of the competition is to ensure the safety of oil supply and to bring the best benefits to consumers the most optimal pattern. and oil diversification is not only China, many countries around the world have tried. As early as the two World War, Churchill put forward to ensure that oil security should be diversified.　　I think that the requirement of pluralism is also an established policy for our country to develop and ensure oil security.　　Moderator: So how do we look at the relationship between national oil security and open markets? Han Xiaoping: In fact, open can bring security, not open can bring security, just the boss talked about this problem, said that will happen like iron ore such a situation, I think this is impossible. Because the oil market and iron ore are completely different, iron ore in the world mainly by three monopoly, but oil is very diversified.　　Therefore, after opening the market, it is likely to reduce the overall price of oil procurement costs. The two big companies buy oil, and the real result is that our oil prices are the highest in the world. And even so, the oil they buy is not cheaper, because in the process of buying oil, they are not particularly strong in the ability to manage futures. So often after diversification, put the market into some catfish, the two big companies to improve their operating level may be more favorable.　　For oil prices, the cheapest time last year, 33.5 dollars a barrel, if we buy a lot at that time, the entire price level can be lower. Of course, energy conservation and oil prices are two different things, and we hope that even if the extra money can be really used for energy saving. But in fact, the extra money we pay now pushes up international oil prices. Now many international speculators are betting on China, that is, the price of oil that China buys is high, so many people speculate. In fact, if China's futures are more powerful, international speculation will be relatively reduced, and it will be good for pushing up the world's oil prices.