Oil industry development

First, crude oil supply and demand

1 Oil consumption is down year-on-year

In 2022, affected by multiple factors, domestic oil consumption declined year-on-year. According to the statistics of the Research Institute of Economics and Technology of petrochina, in 2022, China's apparent oil consumption was 719 million tons, down 0.6% year-on-year, which is the first negative growth in nearly 30 years. Measured from the perspective of terminal consumption, China's apparent oil consumption in 2022 was 692 million tons, down 4.4% year-on-year and down 0.6% from the same period in 2019.

2 Crude oil production returned to 200 million tons

Data from the National Bureau of Statistics show that in 2022, China's crude oil production returned to 200 million tons, reaching 204.722 million tons, an increase of 2.9%, which is China's crude oil production growth for four consecutive years. Unconventional oil and gas has become an important field of stable oil production. In 2022, unconventional crude oil production will account for about 10% of total output, of which shale oil production will exceed 3 million tons, becoming a stable crude oil production force.

In 2022, domestic oil and gas enterprises steadily promoted the implementation of the "seven-year Action Plan" and continued to increase exploration efforts, including nearly 1.46 billion tons of new proved geological reserves of oil, mainly from the Ordos Basin, Bohai Bay Basin (including sea areas) and Tarim Basin. Deep oil and gas exploration, deep water oil and gas exploration and unconventional oil and gas exploration have made major discoveries and new breakthroughs. The Shunbei Oil and gas Field base of "Shendi No. 1", China's first oil and gas project named "deep Earth Project", has efficiently implemented two oil and gas rich areas with over 100 million tons of resources. Bonan Buried Hill in Bohai Bay Basin, Fuman Ordovician system in Tarim Basin, shale oil New Area in Subei Basin, Jiyang Shale oil National Demonstration Zone in Bohai Bay Basin, etc. have all realized 100 million tons of crude oil resources.

3. The price of crude oil imports increased

Data from the General Administration of Customs show that in 2022, China imported 508.276 million tons of crude oil, down 0.9% year-on-year, and the import amount was 2,435 billion yuan, an increase of 41.4%. Crude oil imports accounted for 13% of China's total imports of goods trade in 2022, and it is still China's second largest import commodity after integrated circuits. Under the influence of geopolitics, international oil prices are unusually high, and the cost of crude oil imports is too high, which is the main reason for the year-on-year decline in China's crude oil imports in 2022. In 2022, China's dependence on foreign crude oil will be reduced to about 71%.

In 2022, China's crude oil imports are mainly from Saudi Arabia, Russia, Iraq, the United Arab Emirates, Oman, Malaysia, Kuwait, Angola, Brazil, Colombia. Among them, Saudi Arabia, as China's largest crude oil importer, exported 87,488,852 tons of crude oil to China throughout the year, with a total transaction amount of 432,383 billion yuan and an average selling price of 4,942 yuan/ton; Russia is the second largest source of crude oil imports in China, exporting 86,248,07 million tons of crude oil to China, with a total transaction amount of 389,3166 million yuan and an average price of 4,514 yuan/ton; Iraq is the third largest source of crude oil imports, exporting 55.486,670 tons of crude oil to China, with a total transaction value of 26,079,580 million yuan, and an average price of 4,700 yuan/ton.

2. Supply and demand of refined oil products

1. Production of refined oil products increased while consumption decreased

In recent years, with the high-quality development of China's petrochemical industry, especially the continuous completion and production of new refining and chemical integration devices, the scale concentration of China's petrochemical industry, the degree of clustering of petrochemical bases, the overall technical level of the industry and the core competitiveness have achieved a new leap. According to the data released by the China Petroleum and Chemical Industry Federation, at present, China's 10 million tons and above refineries have increased to 32, and the total oil refining capacity has reached 920 million tons/year, ranking first in the world for the first time. According to the approval of large-scale refining and chemical projects during the "13th Five-Year Plan" period, there are about 100 million tons/year of large-scale refining and chemical capacity under construction or planning in 2023 and beyond, and the "14th Five-Year Plan" period will usher in the peak production.

China processed 675.897 million tons of crude oil in 2022, down 3.4 percent year on year, according to the National Bureau of Statistics. This is the first time that China's crude oil processing volume has declined after years of continuous growth. The decrease in refining activity was mainly due to the decline in domestic oil demand and the reduction in export quotas for petroleum products.