China's Excess Oil Refining Production Capacity in the Background of the Supply Side Structural Reform

Through analysis of the current situation and newly-increased production capacity-of the oil refining industry of China, this Paper discusses both the continuous expansion trend and the serious excess of production capacity of the oil refining industry of China. Due to the entry of the Chinese economy into the new normal,the accelerated substitution of old energy by new energy and rigid restrictions composed of low carbon and environmental protection requirements, the oil demand of China will continue to increase overall, but the growth will obviously slow down. At the same time, the newly-increased production capacity in Shandong and coastal region will continuously expand, the supply and demand contradiction will intensify, and the structural excess production capacity of the oil refining industry of China will be prominent. It is suggested that the government should attach great importance to the production capacity of the oil refining industry at the macro level, and deeply carry forward the supply side structural reform, and that enterprises should speed up technical innovation,enhance regional and layout optimization, adapt to market changes and adjust product structure, control oil refining but increase chemical engineering, improve product quality and production efficiency, and constantly promote the international competitiveness of the Chinese petrochemical industry.

Refining the Production Process

WHILE much of Africa＇s oil production is exported in its crude form, Uganda is primed to build its own oil refinery. This ambition is set to be realized after the China National Offshore Oil Corp. （CNOOC） struck a $2-billion licensing deal to develop a vast petroleum field in Uganda. Signed in late September, it was the first oil production license to be issued in Uganda,

Brent vs.West Texas Intermediate in the US petro derivatives price formation

In this paper,we apply the spatial panel model to explore the relationship between the dynamic of two types of crude oil prices(WTI and Brent crude oil)and their refined products over time.Considering the turbulent months of 2011,when Cushing Oklahoma had reached capacity and the crude oil export ban removal in 2015 as breakpoints,we apply this method both in the full sample and the three resultant regimes.First,results suggest our results show that both WTI and Brent display very similar behaviour with the refined products.Second,when attending to each regime,results derived from the first and third regimes are quite similar to the full sample results.Therefore,during the second regime,Brent crude oil became the benchmark in the petrol market,and it influenced the distillate products.Furthermore,our model can let us determine the price-setters and price-followers in the price formation mechanism through refined products.These results possess important considerations to policymakers and the market participants and the price formation.

Status of China's Refined Oil Products Consumption and Forecast on Demand During the“11th Five-Year Plan”Period

The author used two common methods in this industry, i. e. the ＂Consumption Coefficient Method＂ and the ＂Elasticity Coefficient Trend Method＂, to forecast the refined oil product demand in 2010. Through analyzing and comparing the two forecast results, it is projected that the demand for finished product oils in 2010 will be in the range of 220 to 240 million tons a year. In addition, out of concern about the total oil products consumption to exceed 600 million tons/year in 2020, the author puts forward suggestions and measures aimed at conservation of oil products and application of alternative fuels.

PVP: Refined Chemical Product

Polyvinylpyrrolidone (PVP) developed by the Henan Kaiyuan Refined Chemical Works is a kind of soluble high molecular refined chemical product, with strong solvency and bond power and it is a principal medicinal supplementary ingredient. It can be used as a bonding agent for making medicinal tablets and particles, and as a dissolving agent for injection a gents, a diluent for capsules, a liquor and pigmentated agent,