Oil industry development

According to industry statistics, by the end of 2022, the total mileage of domestic oil and gas long-haul pipelines has reached 155,000 kilometers, of which crude oil pipelines are about 32,000 kilometers and refined oil pipelines are about 30,000 kilometers.

In 2022, the total length of newly completed oil and gas long distance pipelines is about 4,668 kilometers, of which 802 kilometers of crude oil pipelines are newly completed, and there are no new refined oil pipelines. Compared with the newly completed 1,690 kilometers of crude oil pipelines and 598 kilometers of refined oil pipelines in 2021, the construction of crude oil and refined oil pipelines in 2022 has slowed down significantly. Considering that China's oil consumption has gradually entered the plateau period, crude oil and refined oil pipelines will be more efficient operation of existing pipelines, and it is expected that the mileage of new pipelines will show a gradual trend of decline in the future.

The main crude oil pipelines to be completed or put into operation in 2022 are: Dongjiakou-Dongying crude oil pipeline, Dongying oil transmission Station inbound section of Donghuang Double Line of Dongdong Line, Huangzeshan-Yushan crude oil pipeline, Shandong Yantai Port crude oil pipeline double line (trunk line), etc. In 2022, there will be no crude oil pipelines to be continued or started, and no refined oil pipelines to be completed or put into operation.

On July 4, 2022, the double line (trunk line) of Shandong Yantai Port crude oil pipeline was officially started. The project is the first 20 million ton oil pipeline completed and put into operation during the "14th Five-Year Plan" period in China, with a total length of more than 370 kilometers. It will be fully connected on May 28, 2022. After the project is put into operation, it will form a "two-pronged" new layout with the original 650 kilometers of Yanzi long haul pipeline project in Yantai Port. The crude oil transportation capacity of Yantai Port has been increased from 20 million tons/year to 40 million tons/year.

On August 24, 2022, the Dongjiakou-Dongying crude oil Pipeline was successfully put into operation. The project is the first 15 million tons of oil pipeline put into production in China during the "14th Five-Year Plan" period, with a total length of 365 kilometers. After the project is put into operation, it will gradually replace the old crude oil pipelines such as the East Yellow Line (Dongying - Huangdao) that have been in operation for more than 30 years, increase the oil transmission capacity of 2.6 million tons/year, and the daily transport capacity will reach 43,000 tons.

From December 26 to December 28, 2022, the Huangzeshan-Yushan crude oil pipeline project completed oil commissioning. The project is the first 20 million tons of crude oil pipeline put into use in Zhejiang Province during the 14th Five-Year Plan period, and has the capacity to expand to 30 million tons per year. The total length of the pipeline is about 46.5 kilometers, of which the submarine pipeline is about 45.7 kilometers and the land pipeline is about 0.8 kilometers. After the oil commissioning, Huangzeshan oil storage and transportation base and Zhoushan Green petrochemical base realized interconnection.

4. Oil policy

1. Improve domestic oil and gas security capabilities

On March 22, 2022, the National Development and Reform Commission and the National Energy Administration issued the "14th Five-Year Plan for Modern Energy System", emphasizing the enhancement of oil and gas supply capacity, improving the level of development, and by 2025, the annual domestic crude oil production will recover and stabilize at 200 million tons, and the annual natural gas production will reach more than 230 billion cubic meters. On March 29, the National Energy Administration issued the "Guiding Opinions on Energy Work in 2022", which clarified the priorities of annual energy development, stressed that the security and stable supply of energy is the primary task, and focused on enhancing the capacity of domestic energy production and security, and effectively put the energy rice bowl firmly in their own hands. According to the annual target, China's total energy production will reach 4.41 billion tons of standard coal, 200 million tons of crude oil and 214 billion cubic meters of natural gas. In October, the report of the 20th National Congress of the Communist Party of China proposed to further promote the energy revolution, strengthen the clean and efficient use of coal, intensify the exploration and development of oil and gas resources and increase storage and production, accelerate the planning and construction of a new energy system, coordinate hydropower development and ecological protection, actively develop nuclear power in a safe and orderly manner, strengthen the construction of energy production, supply, storage and marketing system, and ensure energy security.

2 After international oil prices exceeded the upper limit of US $130 per barrel, domestic refined oil prices will not be raised