2022 Petroleum Industry Research Report

(2) Sinopec [600028.SH]: China Petroleum & Chemical Corporation (Sinopec) primarily engages in oil and natural gas operations, as well as chemical operations. Its oil and natural gas business encompasses exploration, development, and production of crude oil and natural gas; pipeline transportation of crude oil and natural gas; refining of crude oil into petroleum products; and marketing of crude oil, natural gas, and refined petroleum products. Its chemical business involves manufacturing and marketing a broad range of industrial chemical products. Sinopec is one of China’s largest integrated oil and gas producers; ranks first in refining capacity nationwide; operates an extensive finished-oil sales network across China and is the country’s largest supplier of finished petroleum products; and holds the top position in ethylene production capacity, having established a relatively comprehensive marketing network for chemical products. (3) Rongsheng Petrochemical [002493.SZ]: Rongsheng Petrochemical Co., Ltd. mainly engages in the research, development, production, and sale of various petrochemical and chemical fiber products. Its product portfolio includes olefins and their downstream derivatives, aromatics and their downstream derivatives, gasoline, diesel, jet fuel, purified terephthalic acid (PTA), polyethylene terephthalate (PET) chips, PET bottle-grade resin, polyester partially oriented yarn (POY), polyester fully drawn yarn (FDY), and polyester textured yarn (DTY), among over thirty product categories. The company ranks among the leading enterprises in China’s petrochemical and chemical fiber industries in terms of comprehensive strength. 3.6 Key Global Competitors Major non-Chinese global competitors include EOG Resources [EOG.N], Hess Corporation [HES.N], ConocoPhillips [COP.N], Phillips 66 [PSX.N], Gulfport Energy [GPOR.N], Marathon Petroleum [MPC.N], ExxonMobil [XOM.N], Rex American Resources [REX.N], Southwest Gas Holdings [SWX.N], and Laredo Petroleum [LPI.N]. Figure: Major U.S.-Listed Companies Source: Asset Information Network, Qianji Investment Banking, iFinD (1) ExxonMobil [XOM.N]: ExxonMobil Corporation was founded in 1882 in New Jersey. Its divisions and affiliates operate or sell products in the United States and most other countries worldwide. Its core businesses involve exploration and production of crude oil and natural gas, as well as manufacturing, trading, transportation, and sale of crude oil, natural gas, petroleum products, petrochemicals, and various specialty products. Its affiliates conduct extensive research programs to support these operations. (2) EOG Resources [EOG.N]: EOG Resources, Inc. was incorporated in Delaware in 1985. The company and its subsidiaries constitute one of the world’s largest independent oil and natural gas exploration and production companies, with operations spanning the United States, Canada, Trinidad (United Kingdom), and China. Its strategy centers on maximizing return on invested capital by controlling operating and capital expenditures and maximizing reserve recovery—aiming to strengthen cash flow generation and earnings per unit of production cost, thereby enabling sustained long-term production growth while maintaining a robust balance sheet. EOG implements this strategy primarily through low-cost production using drilling equipment. Simultaneously, achieving the lowest possible cost structure while ensuring safe operations remains a key strategic objective.

EOG Resources Q4 Financial Report Analysis (2020–2021)

As shown in the chart, in Q4 2021, the company reported total operating revenue of RMB 5.908 billion, representing a 104.88% year-on-year increase; operating profit of RMB 2.627 billion, up 363.81% year-on-year; and net profit of RMB 1.985 billion, surging 488.21% year-on-year. This dramatic growth was primarily attributable to the severe impact of the COVID-19 pandemic in 2020, which intensified an ongoing oil price war, further depressing an already oversupplied market and pushing oil prices to levels not seen by the company in over two decades. In contrast, the post-pandemic period beginning in 2021 saw effective containment of the virus, coupled with EOG’s market expansion—including launching Dorado, a new high-quality natural gas project in South Texas, adding 1,250 premium net drilling locations there. Additionally, EOG doubled its internal hurdle rate for capital allocation—from a minimum of 30% to a targeted after-tax return of 60%. By year-end, the company had replaced 175% of its annual drilled dual-premium wells, significantly enhancing the overall quality of its inventory. Despite inflationary pressures, EOG reduced well costs by 7%. Improved individual well performance, combined with a diversified marketing strategy, drove peer-leading price realizations. Key ESG metrics also improved, including methane emission intensity, flare gas capture rates, water reuse, and employee safety. That year, the company achieved a record net income of USD 4.7 billion and generated a record USD 5.5 billion in free cash flow, delivering a record USD 2.7 billion in cash returns to shareholders. III. Market Outlook Crude oil will continue playing a vital role in the global energy system: On April 9, 2019, BP released its 'Energy Outlook 2019', forecasting global energy conditions through 2040. Under a scenario of gradual change in energy landscape and policy, oil will account for 27% of global energy demand in 2040; under a scenario of rapid transformation, oil’s share falls to 23%. Thus, crude oil will remain critically important within the global energy system over the next two decades. U.S. shale oil has become a major source of incremental global oil supply: The U.S. possesses abundant shale oil resources, with technically recoverable reserves estimated at approximately 58 billion barrels—the highest globally. The shale revolution has profoundly reshaped both domestic U.S. oil supply-demand dynamics and the global oil and gas landscape. Prior to large-scale shale oil production, global oil production was concentrated among OPEC members and select non-OPEC economies such as Russia. Since 2011, rapid shale oil development has substantially increased the U.S. share of global oil production—reaching about 15% in 2018 and propelling the U.S. to become the world’s largest oil producer. During the same period, OPEC’s share stood at roughly 41%, Russia’s at about 13%, and Saudi Arabia’s also around 13%. U.S. shale oil thus occupies a pivotal position in the global oil market. U.S. shale oil retains substantial production growth potential: Approximately 80% of U.S. crude oil output originates from the contiguous 48 states, about 16% from the Gulf of Mexico, and the remainder from Alaska.

Coerente Capital Management Boosts EOG Resources Stake

Apr 11, 2026

Coerente Capital Management increased its stake in oil and gas producer EOG Resources by 6.1% in Q4 2025, now holding $15.14 million worth of shares. This move signals institutional confidence in the energy sector's financially stable firms despite market volatility.

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