Research Report of Development of Petroleum and Petrochemical Industry in Beijing from 2006 to 2007

E. Analysis on industrial chain - 12 -
Section two. Analysis on developing environment - 14 -
A. Features - 14 -
1. Restriction of resources - 14 -
2. Risks - 14 -
3. Internationalization - 14 -
4. Scale economy - 14 -
5. Strategic - 14 -
B. Relationship with macro-economy - 15 -
1. Analysis on operation - 15 -
2. Analysis on macro-economy operation - 16 -
3. Analysis on relationship - 19 -
C. Analysis on developing environment - 19 -

1. Analysis on status quo of global petroleum and petrochemical industry - 19 -
2. Prediction in the future - 31 -
Prospect of oil industry in 21st century - 32 -
Prospect of demand for oil in 21st century - 33 -

3. Anlaysis on impact of China’s energy policies  - 36 -
D. Analysis on policies - 39 -
1. Market entrance policy - 39 -
2. Market competition policy- 41 -
3. Price policy - 41 -
4. Domestic distribution policy - 43 -
5. Import and export policy - 44 -
6. Environmental protection policy - 45 -
7. Finance policy - 45 -
8. Technology policy - 48 -
9. Management system and market reform  - 48 -
10. Transportation system and reform - 49 -

E. Analysis on policy plan in “Eleventh Five-year Plan” - 50 -
1. Key planning of refinery industry - 50 -
2. Key planning of raw material industry - 51 -

Chapter Two. Analysis on Development  of Petroleum and Petrochemical industry- 53 -
Section one. Analysis general development - 53 -
A. Status quo and trend - 53 -
1. Status quo - 53 -
2. Prediction - 55 -
B. Status quo and trend of natural gas industry - 58 -
1. Status quo of the world- 58 -
2. Developing trend - 62 -
3. Status quo of China - 63 -
C. Comparison of production and consumption - 66 -
D. Analysis on prices of crude oil and natural gas - 67 -
1. The supply and demand of crude oil was basically balance in 2006, and the price drops gradually - 67 -
2. Production of oil will slightly rise in 2001 - 68 -
3. Demand for oil will rise by a small degree - 69 -
4. Price of LNP and natural will rise - 69 -
E. Analysis on product oil market - 70 -
1. Positioning - 70 -
2. Supply - 71 -
Product oil production structure and prediction of production in 2007 - 71 -
3. Analysis on demand - 72 -
4. Analysis on profits- 73 -
Three price adjustments since 2006 - 74 -
F. Analysis on import and export - 75 -
1. Rapid increase of import and decline in export of crude oil - 75 -
2. Rapid increase of import and decline in export of product oil - 76 -
3. Rapid increase of import and decline in export of oil in general - 76 -
G. Progress of key projects - 77 -
Section two. Analysis on economic indexes - 77 -
A. Anlaysis on overall economic indexes - 77 -
1. Analysis on rapid - 77 -
2. Analysis on profit - 78 -
3. Analysis on cost - 78 -
4. Analysis on capital and asset - 78 -
B. Analysis market demand and supply - 79 -
1. Analysis on production - 79 -
2. Analysis on sales and storage - 79 -
3. Analysis on import and export - 79 -
C. Analysis on market price - 80 -
D. Analysis on investment - 80 -
E. Analysis on enterprises - 80 -
1. Operation of top 10  - 80 -
2. Operation of enterprises of different scales - 80 -
Section three. Analysis on capital demand - 80 -
A. Analysis on features of demand - 80 -
B. Analysis on capital resource - 81 -
Chapter Three. Analysis on Regional Distribution - 83 -
Section one. Operation and economic features of oil and petrochemical industry in Beijing - 83 -
Section two. Anlaysis on key regions - 83 -
A. Liaoning  - 83 -
1. Analysis on industrial scale - 83 -
2. Analysis on finance of products - 83 -
B. Shandong - 84 -
1. Analysis on industrial scale  - 84 -
2. Analysis on finance of products - 84 -
C. Jiangsu - 85 -
1. Analysis on industrial scale  - 85 -
2. Analysis on finance of products - 86 -
D. Shanghai - 87 -
1. Analysis on industrial scale  - 87 -
2. Analysis on finance of products - 87 -
E. Zhejiang - 88 -
1. Analysis on industrial scale  - 88 -
2. Analysis on finance of products - 89 -
F. Guangdong - 89 -
1. Analysis on industrial scale  - 89 -
2. Analysis on finance of products - 91 -
Section three. Analysis on other regions  - 91 -
A. General analysis  - 91 -
B. Analysis on enterprise scale - 92 -
Chapter Four. Analysis on key enterprises  - 94 -
Section one. PetroChina - 94 -
A. Analysis on main business - 94 -
 (Last quarter and the whole year of 2006) - 94 -
B. Analysis on structure - 98 -
C. Analysis on management system - 99 -
D. Subsidiary companies - 100 -
3. Daqing Oil Field - 101 -
4. Liaohe Oil Field - 102 -
5. North China Oil Field - 102 -
6. Kelamayi Oil Field - 103 -
7. Yanchang Oil Field - 103 -
8. Urumchi Branch - 104 -
9. Dalian Petrochemical - 104 -
Section two. Sinopec - 104 -
A. Analysis on main business - 104 -
B. Analysis on structure - 107 -
C. Analysis on management system - 107 -
D. Subsidiary companies - 108 -
1. Maoming Petrochemical  - 109 -
3. Shengli Oil Field - 109 -
4. Zhenhai Refinery - 110 -
Setion three. CNOOC- 111 -
A. Analysis on main business - 111 -
B. Analysis on structure  - 113 -
C. Analysis on management system - 113 -
D. Subsidiary companies - 115 -
2. China Offshore Oil Co.- 116 -
3. CNOOC Shell Petrochemial Co. - 116 -
Section four. Anlaysi on other enterprises - 117 -
A. China Chemical - 117 -
B. Chinese Chemical - 117 -
Chapter Five. Suggestion on Investment and Finance Exploration - 120 -
Section one. Anlaysis on investment opportunities from 2007 to 2010 - 120 -
Section two. Analysis on investment risks and prevention - 122 -
A. Policy - 122 -
B. Economy - 122 -
Price fluctuation - 122 -
Economic globalization - 122 -
New energy replacement - 122 -
Section three. Suggestion on investment and finance exploration - 122 -
A. Suggestions of investment and loan direction - 122 -
B. Industrial information that should be paid attention to - 124 -
List of tables - 126 -

List of tables
Table 1. Industrial chainf - 13 -
Table 2. Products chain - 13 -
Table 3. Production of crude oil in 2006 - 15 -
Table 4. Production of natural gas in 2006 - 16 -
Table 5. China’s GDP from 2002 to 2006 - 17 -
Table 6. Energy consumption of China from 2002 to 2006 - 18 -
Table 7. Investment in real assets from 2002 to 2006 - 18 -
Table 8. Change of one-time energy consumption in the world - 20 -
Table 9. Consumption structure of one-time energy in the world- 20 -
Table 10. Consumption structure of energy in the world in 2006 - 21 -
Table 11. Change of oil reserve in the world - 21 -
Table 12. Regional distribution of world oil reserve - 22 -
Table 13. Remaining excavatible reserve in major countries in 2006 - 23 -
Table 14. Top 10 oil producing countries in 2006 - 24 -
Table 15. Change of world natural gas reserve  - 24 -
Table 16. Top 10 countries with the most remaining proved reserve in the world  - 25 -
Table 17. Reserve of world and oil and natural gas in 2006 - 25 -