Refining capacity exceeds demand by 120 million tons, private oil companies hold a group for warmth

With the continuous liberalization of China's crude oil import rights and import use rights, and the introduction of refined oil floor prices, private oil companies have also ushered in their best days this year.
Crude oil imports have skyrocketed and operating rates have continued to hit new highs.
Profits are also considerable
.
But at the same time, the problem of overcapacity in refining has become more and more prominent
.
Many industry insiders have pointed out that the overcapacity of refining in the petroleum industry is more serious than that of the steel industry, and the tasks of reducing production capacity and eliminating outdated production capacity during the "13th Five-Year Plan" period are very difficult
.
It must be pointed out that private oil companies are still facing problems such as poor quality, poor management, and small scale, and they are bound to be at a disadvantage in the face of fierce competition in the future
.
Pan Long, chairman of Longzhong Petrochemical Communication, believes that 2016 is the first year of reform and integration.
Either integrate others or let others integrate.
Private oil companies are the kingly way
.
Crude oil imports by private oil companies have skyrocketed Since 2015, China has gradually liberalized imported crude oil use rights, crude oil import rights and refined oil export quotas for local refining, and the number of local refining imported crude oil has grown strongly
.
Up to now, 13 companies have received a total of 54.
59 million tons of crude oil import quotas, one company’s quota of 2.
4 million tons has been publicized and is waiting for approval, 5 companies are applying for a total of 21.
23 million tons, and there are many more companies.
Application is being submitted
.
Benefiting from this, the import volume of crude oil in Shandong, a major refinery province in China, has also been increasing
.
According to customs data, in the first quarter of 2016, Qingdao and Jinan Customs in Shandong Province imported a total of 27.
34 million tons of crude oil, a strong year-on-year increase of 78%, surpassing South China and taking up 30% of the country's crude oil imports
.
In March, the two customs imported 10.
2 million tons of crude oil in total, a sharp increase of 90% year-on-year
.
In addition to the demand for some strategic reserves of crude oil, the other is mainly driven by the private refining and purchasing of overseas crude oil
.
Benefiting from the liberalization of the right to import crude oil, the life of private refining is getting better and better.

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Longzhong Petrochemical Communication Chairman Pan Long told the "Securities Daily" reporter that before 2015, due to national policy reasons, local refining could not obtain qualified raw materials and could only refine low-quality oil.
Naturally, the stability of the blending materials could not be guaranteed.
There must be a problem
.
With the gradual liberalization of policies and the oversupply of international crude oil, the supply of qualified crude oil has been fundamentally improved, and the quality of oil has been guaranteed on the basis
.
Starting from the fourth quarter of 2015, with the successive approvals and implementation of imported crude oil, the operating rate of Shandong Refinery has also begun to rebound significantly from a low level
.
According to statistics from Longzhong Petrochemical, since 2016, the average operating rate of the Shandong refinery has been around 50.
58%
.
"Recently, refining and gas stations have had a very good life.
Gas stations can be said to have made huge profits
.
But it is not because of the good market, but because of the new floor price policy formulated by the country and the low oil price of international crude oil
.
In the long term, national pricing The mechanism will definitely be liberalized eventually, and taxation management will become more and more stringent, so that the good days of private oil companies will not be too long
.
" He said quite worried
.
Refining overcapacity is comparable to steel.
Although the status quo of private refining is constantly improving, the problem of overcapacity in refining has become increasingly prominent
.
Recently, the China Petroleum and Chemical Industry Federation issued the "2016 Petrochemical Industry Capacity Early Warning Report" (hereinafter referred to as the "Report"), stating that the capacity utilization rate of the refining industry in 2016 may remain flat or continue to decline, and overcapacity is becoming more prominent.
It is worthy of vigilance.

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The "Report" predicts that in 2016, China will add 30 million tons of new oil refining capacity, eliminate 30 million tons of backward production capacity, and maintain oil refining capacity at around 800 million tons, with production capacity exceeding the demand by 120 million tons
.
Fu Chengyu, a member of the National Committee of the Chinese People's Political Consultative Conference and former chairman of Sinopec Group, also stated during the two sessions this year that the overcapacity of refining in the petroleum industry is more serious than that in the steel industry
.
Last year, the national refining capacity reached 750 million tons, but the actual demand was only 500 million tons.
In addition, the oil refining capacity is expected to reach 900 million tons by 2020.

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What needs to be mentioned is that since the beginning of this year, the operating rate of local refineries has continued to hit new highs, which has also led to further refining overcapacity
.
Yang Ye, a refined oil analyst at Longzhong Petrochemical, told the "Securities Daily" reporter that the overcapacity of refining has a certain relationship with the current refined oil price policy
.
Floor prices have led to increased enthusiasm for processing companies and continuous expansion of production capacity, which to a certain extent is not conducive to supply-side reform and capacity reduction
.
Pan Long also pointed out that both crude oil and refined oil have overcapacity in the world.
In the next few years, China’s refined oil will soon be as surplus as the steel industry, with poor quality, poor management, no brand, and small scale.
Private oil companies Facing the fierce competition in the future, it is bound to be at a disadvantage
.
At present, private oil companies as a whole, there are common problems of poor professional ability and low management level in all links of production, fuel adjustment, storage, transportation, and gas stations
.
In this situation, on February 29 this year, the China (independent refinery) Petroleum Purchasing Alliance (hereinafter referred to as the "Alliance") formally announced its establishment
.
"The era of fighting alone is over.
2016 is the first year of reform and integration.
Either integrate others or let others integrate
.
Alibaba and Sinopec have reached cooperation agreements and are negotiating cooperation with PetroChina, and Tencent is also working with two barrels.
You talk, these giant crocodiles are all talking about unity
.
So what do we, Xiao Mi, do?" Pan Long said that private oil companies hold a group for heating is the kingly way, and integrate private gas stations that meet the requirements through the Internet and use advanced technology.
Means, management methods and marketing models to help private gas stations improve their reputation and sales, and then become bigger and stronger
.