Competition pattern and market share of natural gas exploitation industry in China

1. Competitive echelons of China's natural gas exploitation industry

Since the "13th Five-Year Plan", the construction of China's natural gas production, supply, storage and marketing system has steadily advanced, natural gas storage output has grown rapidly, and the "national network" has basically taken shape. Listed companies in natural gas exploitation include: petrochina (601857), Sinopec (600028), CNOOC (00883HK), Guanghui Energy (600256), etc. Due to the existence of strict administrative access threshold, capital threshold and technical threshold, at present, the number of natural gas exploration enterprises in China is not large, the main companies include: CNOOC, petrochina and Sinopec.

According to the production of natural gas mining enterprises, China's natural gas mining industry enterprises can be divided into three competitive echelons. Among them, the annual output of more than 100 billion cubic meters of enterprises are only China National Petroleum; Companies with annual production of 30-10 billion cubic meters include Sinopec and CNOOC; The remaining companies have an annual output of less than 1 billion cubic meters.

2. Market share of China's natural gas extraction industry

Domestic natural gas is mainly supplied by petrochina, Sinopec, CNOOC and other enterprises. According to the announcement data of the companies, the largest domestic natural gas supplier, petrochina, will produce about 4,420 billion cubic feet of natural gas in 2021 (about 125.16 billion cubic meters), accounting for 60%, and Sinopec will produce 119.94 billion cubic feet of natural gas (about 33.96 billion cubic meters), accounting for 17%.

3. Market concentration of China's natural gas extraction industry

According to the production of natural gas by each company until 2021, the CR3 of the natural gas extraction industry exceeds 90% and CR5 exceeds 93%. Overall, the number of participants in China's natural gas mining industry is small, mostly for large central enterprises such as CNOOC, petrochina, and Sinopec, and the market concentration is high.

4. Enterprise layout and competitiveness evaluation of China's natural gas exploitation industry

Among the companies in the natural gas exploitation industry, the large central enterprises such as petrochina, Sinopec and CNOOC have a large scale of natural gas exploitation business. From the perspective of enterprise business competitiveness, China's petroleum competitiveness ranks relatively strong; It was followed by Sinopec and CNOOC.

5. Summary of competition in China's natural gas exploitation industry

From the perspective of the five-force competition model, at present, the number of competitors in China's natural gas mining industry is small, and CNOOC, Sinopec and petrochina occupy the main market share in the natural gas mining industry, with a high market concentration.

Oil and gas mining industry is a special industry, related to the strategic security of the country, the Chinese government on this industry is relatively strict control, without the approval of the government, other enterprises and individuals are not allowed to enter this industry, even if they can enter, the domestic new entrants are limited by capital and technology, it is difficult to form a climate in the short term. As a result, new entrants to the industry pose less of a threat.

With current technology, renewable energy may not be the main energy source for a long time. Coal is the main energy source in China, accounting for more than 70% of domestic energy consumption. But the consumption of coal has caused big pollution to our country's environment. With our country's emphasis on environmental protection, the use of oil and natural gas has been greatly encouraged and supported. In the general trend of energy consumption in China, the proportion of coal is gradually decreasing, the proportion of oil and natural gas is increasing, and the threat of substitutes in the natural gas mining industry is less.