Oil industry development

In the case of the reduction of crude oil processing, the total output of refined oil products increased, but there was a large divergence between varieties. Specifically, the total output of the three major oil products (gasoline, diesel, kerosene) was 366 million tons, an increase of 3.2%. The output of gasoline was 145.356 million tons, down 5.1% year on year; Diesel oil production was 191.257 million tons, an increase of 17.9%; Kerosene production was 29.491 million tons, down 24.9% year on year. The output of gasoline, diesel and kerosene accounted for 39.7%, 52.2% and 8.1% respectively.

On the demand side, according to the statistics of the Research Institute of Economics and Technology of petrochina, in 2022, the domestic consumption of refined oil products was 365 million tons, down 7.7% year-on-year, which was the second negative growth in nearly 30 years, and the decline was greater than the first decline in 2020. Specifically, in terms of gasoline, the multi-point distribution of the epidemic in 2022 will inhibit travel demand, the upgrading of gasoline and oil products will reduce vehicle fuel consumption, and the rapid development of new energy vehicles will replace traditional cars, which will jointly lead to a decline in gasoline consumption, but the domestic car ownership still maintains the growth trend, and the huge base supports gasoline consumption to remain high. Gasoline consumption for the year was 149 million tons, down 10.3 percent from a year earlier.

In terms of diesel, the epidemic in 2022 has led to a significant reduction in oil consumption in the transportation and logistics industry, but the country's six-stage vehicle pollutant emission standards have been upgraded, and the country's three old cars have been phased out in advance, which has driven the development of the diesel market to a certain extent. Diesel consumption for the year was 195 million tons, down 1.7 percent year on year.

In terms of kerosene, affected by the epidemic in 2022, the domestic and international route market is sluggish, resulting in a significant decline in aviation kerosene demand. The annual consumption of jet coal was 20.98 million tons, down 31.7% year-on-year.

2 Net exports of refined oil products fell

Data from the General Administration of Customs show that in 2022, China's refined oil imports were 26.45 million tons, down 2.5% year-on-year, and refined oil exports were 53.69 million tons, down 11.0% year-on-year. Net exports of refined oil products fell back to 27.24 million tons for the year, about 5.94 million tons less than in 2021. In recent years, in order to implement the "double carbon" goal and change the previous "big import and export" trade pattern, the state has gradually tightened the export quotas of refined oil products, and the export quotas of refined oil products issued in 2021 and 2022 are about 37 million tons, which is about 36% less than the previous peak quota. Under the background of the current domestic refining overcapacity, "reducing oil and increasing" has been the trend of The Times, and the policy tightening at the export end has become the norm, and the export of refined oil products in China will maintain a downward trend in the future.

3. Adjustment of refined oil prices

In 2022, the domestic retail price limit of refined oil products has experienced a total of 24 rounds of price adjustment window period, which is "13 up and 10 down and 1 stranded", after the rise and fall, the domestic gas and diesel prices have increased by 550 yuan/ton and 530 yuan/ton respectively. In the first half of 2022, the international oil price is running at a high level, and under the background of the current refined oil pricing mechanism, the domestic refined oil retail price limit adjustment is more timely, and the overall situation is more or less. In the second half of the year, as the international crude oil price level continues to fall, the retail price limit of domestic refined oil products has been reduced. Specifically, at 24 o 'clock on March 17, the domestic gasoline and diesel retail limit prices were raised by 750 yuan and 720 yuan per ton, respectively, and the 92 gasoline, 95 gasoline and 0 diesel were raised by 0.59 yuan, 0.62 yuan and 0.61 yuan per liter, respectively, which is the largest increase under the current pricing mechanism. At 24 o 'clock on April 15, the domestic gasoline and diesel retail limit prices were reduced by 545 yuan and 530 yuan per ton, respectively, after the price increase, 92 gasoline, 95 gasoline and 0 diesel were reduced by 0.43 yuan, 0.45 yuan and 0.45 yuan per liter, respectively, which was the biggest drop in the year. From 24 on June 28 to 24 on August 23, the domestic retail limit price of refined oil products showed a "five consecutive declines". On the whole, affected by the international crude oil shock trend, the retail price adjustment of domestic refined oil products in 2022 is mostly adjusted above, and mainly concentrated in the first half of the year.

3. Oil storage and transportation