China's petroleum and chemical industry development status and development prospects forecast

From the perspective of industrial income structure, the petroleum and chemical industry can be divided into chemical industry, refining industry and oil and gas extraction industry. In 2019, the operating income of China's petroleum and chemical industry was 12.27 trillion yuan, an increase of 1.3% year-on-year, among which, the operating income of the chemical industry was 6.89 trillion yuan, a decrease of 0.9% year-on-year, and the operating income of the refining industry was 4.02 trillion yuan, an increase of 4.6%, a growth rate of 1.6 percentage points; The operating income of the oil and natural gas extraction industry was 1.10 trillion yuan, up by 2.4 percent or 0.6 percentage points.

In the first half of 2020, the operating income of the petroleum and chemical industry was 5.07 trillion yuan, down 11.9% year-on-year and 1.6 percentage points narrower than that of the first quarter, accounting for 11.0% of the operating income of large-scale industries in the country. Among them, the operating income of the chemical industry was 2.93 trillion yuan, down 10.5% year-on-year, which was 8.1 percentage points narrower than that in the first quarter; The operating income of the refining industry was 1.61 trillion yuan, down 13.1% or an increase of 5.7 percentage points; The operating income of the petroleum and natural gas extraction industry was 418.69 billion yuan, down 17.8% or 16.9 percentage points.

Overall, China's petroleum and chemical industry is still dominated by the chemical industry and refining industry, with the proportion of both reaching 89.55% in the first half of 2020.

In terms of the production and sales of petrochemical products, the current domestic petrochemical products are in short supply. Due to the special advantages of the petrochemical industry in the industrial chain and its market supply and demand situation, the industry has a strong bargaining power, and the price growth rate of petrochemical products and its processed products is higher than the growth rate of crude oil prices. Petrochemical products mainly include ethylene and other derivative products, synthetic resins, synthetic fibers, synthetic rubber, urea and other categories.

China's oil refining industry is mainly developed by relying on its own technology, which can basically meet the needs of national economic and social development for petroleum products, and some products are exported. China's petrochemical industry on the basis of the introduction of technology and equipment, through digestion and absorption, in recent years, it has also developed some process technologies and been promoted and applied in the industry, which can produce petrochemical products required by the domestic market. In the field of petrochemicals, a number of new technologies have also been developed.

China's petroleum and chemical industry outlook trends

At present, China's petroleum and chemical industry is at the historical intersection of industrial reform, facing the challenges of increasing resource and environmental constraints, rising factor costs, and increasingly prominent structural contradictions. China's petroleum and chemical industry should take the entrepreneurial confidence chess, form the determination of hard work and upward, and determine their own business positioning and future market development potential; We should play the strategic management game well, improve the ability of strategic control, and strive to improve the level of strategic management of enterprises.

It is necessary to pursue transformation and development, stimulate internal impetus, accelerate the pace of industrial upgrading, transformation and product innovation, and promote the development of industrial distribution to the high-end of the industrial chain and strategic emerging industries.

We need to develop through innovation and enhance our ability to drive innovation. Make good progress in internationalization and enhance international competitiveness. After analyzing China's economic operation, industrial production, price trend and structural adjustment and other comprehensive factors, the judgment is made; Using linear regression method, it is estimated that the sales revenue of China's petrochemical market will reach about 12 trillion yuan in 2026.