We will foster new driving forces for green development, guided by the goal of "double carbon"

Ensuring energy security is an important responsibility of oil and gas enterprises

In the discussion of the 20th report on promoting carbon to peak carbon neutrality, it was first proposed that we should base on energy and resource endowments and insist on standing before breaking. Make what? What the fuck? How to set up? How to break? These questions deserve deep consideration and scientific arrangement.

From the perspective of energy resources endowment, China has the characteristics of rich coal, poor oil and little gas. According to the National Bureau of Statistics, in 2021, China's dependence on crude oil and natural gas will be 72% and 42% respectively. Coal imports were 323 million tons, less than 10 percent of production. Data show that in 2021, China's coal, oil, natural gas, non-fossil energy in the energy structure accounted for 56%, 18%, 9% and 16%, respectively, China's primary energy consumption structure is still dominated by coal. From the carbon content per unit calorific value, the carbon content per teracoke of coal is 26.38 tons; Oil is 20.1 tons, 76% of coal; Natural gas is 15.3 tons, 58% of coal and 76% of oil. Oil and gas are cleaner sources of energy than coal.

Considering the overall relationship between ensuring energy security, meeting the energy needs of economic and social development and realizing the "dual carbon" goal, coal with the highest carbon emissions should become the focus of "breaking", new energy sources such as hydropower and renewable energy with zero carbon emissions should become the focus of "breaking", and oil with relatively low carbon emissions, especially natural gas, should be between "breaking" and "breaking". It has an important balancing effect. Therefore, continuously consolidating the reserve base of oil and gas and maintaining stable production growth will not only accelerate the replacement of coal and reduce the total and intensity of carbon emissions, but also win more time for the development of renewable energy.

Oil and gas enterprises should be fully aware of the important role of oil and gas in energy transformation and the promotion of "dual carbon" work, actively assume the responsibility of ensuring national energy security, closely focus on the task of increasing storage and production, continue to increase exploration and development efforts, enhance the "rigidity" of reserves and the "resilience" of production, and ensure that oil and gas production has the ability to grow steadily.

At the same time, the relevant state departments should pay enough attention to the balance of oil and gas when dealing with the relationship between "creation" and "destruction", and give corresponding inclination and tolerance in determining the "dual carbon" goal, assigning work tasks, formulating policies, etc., from the perspective of the overall contribution to the economic and social security operation and the realization of the national "dual carbon" goal. Scientifically determine the timetable for carbon peaking in oil and gas enterprises.

Energy conservation and emission reduction are the basic obligations of oil and gas enterprises

Reducing emissions of carbon dioxide and other greenhouse gases to achieve peak carbon neutrality is an objective requirement for addressing climate change and protecting the living environment of mankind. From the perspective of enterprises as the basic economic unit of social operation, it is the social responsibility of enterprises to reduce carbon dioxide emissions. With the implementation of the Paris Agreement, countries have issued targets to achieve carbon neutrality by the middle of the 21st century, and have begun to develop action plans to reduce carbon emissions. The European Union, China and other major economies in the world have established carbon emission trading schemes. At the international credit rating level, international rating agencies have established an ESG rating index system and methodology, which is expected to be incorporated into the corporate credit rating system in the near future, and the combined release of corporate rating results will affect the financing cost of the international capital market.

Therefore, to do a good job of carbon peak carbon neutral work, not only directly affect the economic efficiency and business performance of enterprises, but also affect the public image and development environment of enterprises. Oil and gas companies should fully understand and pay attention to carbon emission reduction, and regard it as a basic obligation of enterprises, rather than just a social responsibility. It is necessary to properly handle the relationship between enterprise development, economic benefits and the realization of the "double carbon" goal, scientifically formulate a carbon peak carbon neutral roadmap, form specific work measures, implement the action plan in steps and stages, continue to increase capital investment, strengthen the supervision and assessment of work progress, and implement the work of carbon peak carbon neutral and achieve actual results.

Changing production mode is the development path of oil and gas enterprises

To promote the realization of green and low-carbon development, and actively and steadily do a good job of "dual carbon" work, the core is to change the production mode of enterprises, reduce the dependence on the development path of high carbon emissions, and transform the green and low-carbon development concept into specific actions and work measures of enterprises. Therefore, the transformation of production mode is a key path to promote carbon peak carbon neutrality work to achieve good results. Oil and gas enterprises must integrate the concept of green and low-carbon development into the whole process of enterprise operation, including strategy formulation, investment and operation decision making, business structure adjustment and optimization, production and operation arrangement, production process optimization, process parameter optimization, production post optimization, etc. Scientific assessment of the impact of development decision making, business unit adjustment, and process improvement on total carbon emission and carbon emission intensity.

At the same time, it is also necessary to continue to improve the statistical accounting system and method system of carbon emissions according to the characteristics of oil and gas business, scientifically and objectively calculate the total carbon emissions of different enterprises, different businesses and different processes, establish a carbon emission assessment index system and assessment mechanism, and incorporate it into business performance assessment. On this basis, the carbon emission reduction work of enterprises should be comprehensively sorted out, the relationship between enterprise development and carbon emission reduction should be properly handled, and carbon emission reduction budget management should be implemented, so that it can be carried out simultaneously with business budget, financial budget, investment budget and other budget management work, and the coordination and systematization of carbon emission reduction work and enterprise production and operation work should be improved.

In addition, overall planning should be made at the company level, the incentive and restraint system should be improved, the system, decision-making process and risk control system should be formulated to participate in carbon market trading, and enterprises should be encouraged to actively participate in carbon market trading, make full use of market mechanism to help enterprises achieve a balance between carbon emission reduction and business performance, and activate the initiative and enthusiasm of enterprises to reduce carbon emissions.

Strengthening scientific and technological innovation is the fundamental support of oil and gas enterprises

Science and technology is the primary productive force, and scientific and technological innovation is the core driving force for high-quality development. In the process of promoting green low-carbon transformation and realizing the goal of "double carbon", oil and gas enterprises should highlight the role of scientific and technological innovation, and take scientific and technological innovation as the fundamental support to promote the development of various work and change the production and development mode.

To strengthen scientific and technological innovation, it is necessary to maintain and enhance appropriate scientific and technological capital investment. It is essential to implement the management of scientific and technological innovation well, build a chain of scientific and technological innovation that runs efficiently, is interconnected and organically coordinated, formulate a scientific and effective incentive and restraint mechanism, stimulate the systematic vitality of scientific and technological innovation, and effectively give full play to the dominant position of scientific and technological innovation. Therefore, the relationship between "I want to innovate" and "I want to innovate" should be properly handled, starting from the management system, operating mechanism, incentive and restraint measures of scientific and technological innovation, aiming at the characteristics of scientific and technological innovation and the operation and management of scientific and technological research institutions, focusing on stimulating the vitality of scientific and technological personnel and invigorating the management of scientific research projects, and formulating and improving the scientific and technological innovation system. The transfer and industrial application effect of scientific and technological achievements will be linked to the performance and direct income of scientific and technological institutions and scientific and technological personnel, stimulate the motivation of "I want to innovate" of scientific and technological institutions and scientific and technological personnel, and strive to create a scientific and technological innovation ecosystem.

In short, the report of the Party's 20th National Congress has pointed out the direction and drawn the blueprint for the future development of oil and gas enterprises, which needs to be deeply understood and sorted out the main contradictions, key development directions and corresponding work measures. In the coming period of time, oil and gas enterprises should continue to increase storage and production, improve the national energy security capacity as an important responsibility to play the role of oil and natural gas in the process of building a new energy system. We will take the work of peak carbon neutrality as a basic obligation, and properly handle the relationship between the realization of the "dual carbon" goal and the protection of national energy security, enterprise development and economic benefits; Transform the concept of green and low-carbon development into specific actions of enterprises and integrate it into the whole process of production and operation of enterprises; Give full play to the fundamental supporting role of scientific and technological innovation, handle the relationship between "I want to innovate" and "I want to innovate", and strive to create a good scientific and technological innovation chain and ecosystem. Guided by the goal of "double carbon", we will take multiple measures to cultivate new driving forces for green development of enterprises.

Twenty major reports were presented

We will ensure a new development pattern with a new security pattern.

We will strengthen security capacity building in key areas and ensure the security of food, energy and resources, and important industrial and supply chains.

We will prudently advance energy transition based on our basic national conditions

 Energy is the lifeblood of the national economy, and energy security is directly related to national security, social stability and economic development. At present, the global energy pattern is undergoing drastic changes, and the geopolitical situation has brought great impact on the global energy supply security, and also sounded the alarm for China's energy security.

Since last autumn and winter, European industrial manufacturing has been plagued by shortages of energy supplies. Energy transformation is the root cause of energy tension in Europe. In 2020, the development of new energy in Europe has achieved a milestone breakthrough, with the share of renewable energy generation reaching 38%, surpassing the share of fossil energy generation for the first time in history. In order to match the rapid development of renewable energy power generation, natural gas power generation has been vigorously developed in Europe because of its many advantages such as peaking and valley filling, energy saving and emission reduction, safety and reliability. The radical energy transition combined with Europe's high dependence and concentration on natural gas imports has reduced the stability of its energy supply. After the conflict between Russia and Ukraine, the sharp impact on the supply side of natural gas caused many European countries to fall into the panic of natural gas shortage, and natural gas prices soared.

The energy shortage in Europe brings a lot of thinking to our country to ensure energy security. In the process of developing new energy, China must take into account the supply of fossil energy, ensure reasonable redundancy of energy supply capacity, and actively and steadily promote the "double carbon" work under the premise of ensuring energy security.

First of all, it is necessary to accelerate the green transformation of the development mode, adjust the industrial structure, energy structure and transportation structure, and promote green development through fiscal and taxation, financial investment, price policies and standard systems. Second, we must adhere to the principle of standing first before breaking down. On the one hand, we must strengthen the clean transformation of coal, increase the exploration and development of oil and gas resources, increase the storage and production of oil and gas resources, and ensure that traditional energy resources are sufficient. On the other hand, we should speed up the construction of new energy systems such as Wind and scenery, promote the development of hydropower and nuclear power, strengthen the construction of energy production, supply, storage and marketing systems, and increase the proportion of new energy. Third, it is necessary to promote the transformation of "dual control of energy consumption" to "dual control of carbon emissions", focus on controlling fossil energy consumption, and help achieve the "dual carbon" goal by improving the statistical accounting system of carbon emissions and improving the market trading system of carbon emission rights.

Strengthen the foundation of cooperation and optimize energy import channels

Europe's dependence on Russian fossil fuels has formed a "543" situation, that is, coal, gas and oil imports account for about 50%, 40% and 30% of total imports, respectively. After the conflict between Russia and Ukraine, although Europe actively seeks alternative fossil energy imports from other regions, it is far from hydrolable, and the supply side has been in a tight balance, and can only take measures such as deindustrialization and limiting residential electricity consumption to reduce demand, resulting in a continued rise in the risk of economic recession in Europe.

At present, China continues to optimize its energy import channels, importing oil and gas resources from the Middle East, West Africa, North Africa, the Americas, the North Sea, Australia, Central Asia-Russia and other regions, and creating four strategic oil and gas import channels in the northeast, northwest, southwest and offshore. From the perspective of long-term resources and supply and demand potential, the Middle East, Central Asia-Russia and Africa are the three regions with the largest oil and gas export scale in the world, and China should establish long-term stable cooperative relations with the exporting countries in these regions.

In recent years, China has made remarkable achievements in oil and gas cooperation with the Middle East. On the one hand, China's oil and gas enterprises exported capital, technology and management to the Middle East; On the other hand, as a late entrant, Chinese enterprises have achieved the Middle East oil and gas market share from scratch, from small to large. In the long run, cooperation between China and the Middle East will continue to deepen. The importance of Middle East oil in the US market is gradually declining under the United States' energy independence and continuous shrinking Middle East strategy. Chinese refineries, especially new refining and chemical integration projects, often use Middle East crude oil as the main incoming design. The bilateral importance of the Middle East to China and China to the Middle East is rising in tandem.

China's cooperation with the Middle East is two-way and mutually beneficial. To achieve greater, broader and deeper cooperation with the Middle East, we need to take the following steps: First of all, Chinese enterprises must become stronger and better international management. Adhere to the international direction in business, and constantly improve the ability to participate in the international market. For petroleum enterprises, strengthening international operation is inseparable from their own high-quality development, and at the same time, they should make good use of the integration advantages of upper, middle and lower reaches to strive for the most favorable cooperation mode and opportunities. Second, we should further open up the Chinese market and seek win-win cooperation. China's domestic oil and gas market and consumer market will be further opened to the Middle East and integrated with each other, and Middle Eastern enterprises will be encouraged to take the initiative to build refineries in China and participate in the construction of strategic petroleum reserves, so as to form an interconnected oil community of shared future. Considering the increasing security and stability of China's investment in the Middle East, China should make good use of the advantages of strategic buyers and market demand, on the one hand to seek the optimization of import value, on the other hand, as an important means to remain invincible in the international game.

Seize development opportunities to address energy supply chain challenges

Fossil energy is often produced not consumed, and global oil and gas trade and supply chains drive oil and gas resources from oil and gas producing areas to demand areas. At present, more than 70% of the world's oil resources are concentrated in the Middle East, Africa and the Americas. Among them, the United States, Saudi Arabia and Russia account for half of global crude oil production. At the same time, Russia is the world's largest natural gas producer and reserves.

In the current reconstruction of the international order, the oil and gas supply chain faces major development opportunities, and oil transportation is expected to become the core asset to fight against high inflation. As an important strategic material, the security of oil supply is related to the lifeblood of the country. Therefore, it is very important to ensure the safety of imported oil transportation. China should first consolidate industrial chain cooperation to build a diversified, reliable and stable energy transport supply chain. Secondly, we should promote the establishment of shipping alliances, form a capacity pool with the right to speak, and achieve win-win development with partners through the integration of capacity scale management.

For new energy, the stability, reliability and affordability of the energy supply chain are also the challenges that its development must face. At present, the most popular scenery power generation in new energy has the problem of separation between production and consumption, and the characteristics of scenery power generation make instantaneous impact problems follow. Therefore, energy storage has become the key to unlocking the crux of the new energy supply chain. The new energy stored in liquid form, especially the liquid that can store hydrogen energy such as methanol and liquid ammonia, is increasingly showing significant advantages because of its adaptation to existing pipelines, transportation networks and use terminals. At present, it has become an international consensus to carry out carbon emission assessment of the whole life cycle of fuels. If the carbon emission problem of production, transportation and refueling can be solved, methanol, liquid ammonia and other energy sources will stand out as alternative energy sources with great potential and contribute significantly to ensuring energy security.

Twenty major reports were presented

We will advance opening-up at a high level. Relying on the advantages of China's ultra-large market, we will attract global resources and factors with a large domestic cycle, enhance the linkage effect of resources in both domestic and international markets, and improve the quality and level of trade and investment cooperation.

The report of the Party's 20th National Congress has pointed out the way for China to promote high-level opening up in the new era. A high level of opening to the outside world is the prerequisite and basis for ensuring international energy cooperation. It is an important mode of giving back to China's friendly countries and enterprises, sharing China's development achievements with other countries, and realizing the positive interaction between "bringing in" and "going out". It is an important starting point to resist trade protectionism and anti-globalization in the energy field; It is an important way to build an energy community with a shared future in the context of global energy transition.

Relying on the advantages of large-scale energy market

We will strengthen the linkage between domestic and foreign markets and resources

In the context of increasing energy tension in Europe and other places, the difficulty of achieving both energy and environmental protection goals and energy security goals, and the fragmentation of the global energy industry chain, adhering to the concept of energy security under the conditions of opening up to the outside world, and promoting the construction of a modern energy system with a higher level and deeper level of opening up are conducive to jointly solving international energy security and environmental protection issues.

Taking advantage of its super-large energy market, China has built active and introduction-oriented international cooperation platforms such as the CIIE, and expanded its energy opening-up with concrete actions. Since the fifth CIIE, China's three major oil companies have signed a total purchase agreement of about 340 billion US dollars (more than 2 trillion yuan). China National Petroleum and other enterprises are the main force in expanding energy opening-up and cooperation by leveraging their energy purchasing power and advantages in the super-large-scale energy market.

During the Fifth China International Import Expo in 2022, major oil companies such as Sinopec, petrochina and CNOOC signed a total purchase agreement of more than 66.89 billion US dollars (nearly 500 billion yuan). Among them, on the first day of the Expo, petrochina signed 30 purchase agreements with 30 partners in the world such as Saudi Arabian National Oil Company, Kuwait Petroleum Company, Halliburton (China) Energy Services Co., Ltd. and SLB, with a total contract value of 16.79 billion US dollars.

The breadth and depth of China's opening up to the outside world in the energy sector are increasing, the upward, middle and downstream integration, and all-round cooperation between new and old energy sources are extended, and opening up to the outside world and opening up and cooperation at home are parallel. Recently, China's oil and gas pipeline network infrastructure was opened to the world's energy companies for the first time through a national expo, and the national pipeline network signed a letter of intent for service with companies such as Chevron and SK of South Korea.

Sino-foreign cooperation in the field of new energy is also growing. Recently, Sinopec and Shell, China Baowu, BASF signed a memorandum of understanding to carry out carbon dioxide capture and storage (utilization) cooperation; Signed a Memorandum of understanding on hydrogen energy cooperation with ThyssenKrupp; Renewed joint venture agreement with Honeywell; Memorandums of understanding on strategic consulting cooperation were signed with Deloitte and Ernst & Young respectively.

Expand international cooperation in the field of energy

We will promote the building of a green Silk Road

The opening up and cooperation of energy rules and standards is an important way to improve the global energy governance system, and is conducive to promoting the construction of a more fair, just, open and shared global energy governance system. China can turn its advantage in green energy production capacity into a new growth point for foreign energy cooperation, expand cooperation with countries along the Belt and Road, and ensure the safety of China's traditional energy imports. If we say that the CIIE is an international platform introduced by "nesting and attracting phoenix", the Belt and Road is an international platform for "peacock flying southeast" to go out and expand opening-up and cooperation.

Building a green Silk Road is an important way to eliminate trade barriers, resist the decoupling of chains, and strengthen cooperation in energy finance and technical standards. In terms of green and low-carbon transformation, CNPC has recently established four new research institutes in Shenzhen, Shanghai, Japan and Dubai. Substantial progress has been made in geothermal, wind power generation, carbon dioxide capture, storage and enhanced oil recovery (CCS-EOR) and other technologies. Comprehensive energy consumption and carbon dioxide emission control of ethane to ethylene projects with green processes have reached the world's advanced level. This has laid a solid foundation for building a green Silk Road.

Promote the optimization and upgrading of energy trade

Upgrade cooperation across the industrial chain

Strengthening international energy trade cooperation in an all-round way and promoting all-dimensional and multi-level international energy trade cooperation through development, integration and sharing of interests is an important way to maintain energy globalization. In order to accelerate the development of China's energy trade power, it is necessary to enhance the level of cooperation across the oil and gas industry chain, deepen investment cooperation, and promote the efficient development and utilization of energy resources. Strengthen the interconnection of regional energy facilities, and build a comprehensive energy system integrating oil and gas with new energy; We will innovate the development mechanism of energy service trade and develop digital energy trade.

The report of the 20th National Congress of the Communist Party of China pointed out that the energy security of more than 1.4 billion people in China has been effectively guaranteed, and major achievements have been made in the construction of energy and other infrastructure. At present, China's oil and gas industry chain cooperation level is steadily improving. CNPC has carried out extensive cooperation in the whole industrial chain of oil and gas and new energy, refining, chemical and new materials, international trade, and petroleum and petrochemical engineering services. As of 2017, the International Station of Sinopec's epai Industrial products e-commerce platform has established cooperative relations with 169 suppliers and 156 purchasers in 59 countries and regions along the "Belt and Road". Cnooc has signed more than 230 foreign cooperation contracts with 81 international oil companies and introduced more than 250 billion yuan of foreign investment. China's energy enterprises have contributed an important force to promoting high-level opening-up and cooperation in China's energy field, and have also laid a solid energy foundation for actively and steadily promoting carbon peak carbon neutrality and actively participating in global governance to address climate change.