China's "fourth barrel of oil" to compete for natural gas market, can it make a leap?

"At present, it is only the restructuring of the industrial chain after the reform of Shaanxi state-owned enterprises, and the results of the integration advantages of the extension of oil still need to be observed." Guo Jiaofeng said.

Multiple gate

In order to use the advantages of integration to achieve a leap in the natural gas industry, the extension of oil still needs to cross multiple thresholds.

Yang Jianhong believes that from the perspective of the company, the integration model is more conducive to the company's operation than the specialization (non-bundling), but the extension of the oil integration model is a case and is not representative. Under the current oil and gas system "X+1+X" reform idea, "control the middle, open the two ends" is the direction, and the development mode of extending oil integration is facing the pressure and risk of reform and restructuring.

At present, the natural gas pipeline in Shaanxi Province is not within the scope of asset allocation of the national pipeline network company, and the provincial pipeline network company has room for existence, but according to the idea of "one national network", the provincial pipeline network company may also be integrated into the national pipeline network company in a market-oriented way.

The natural gas pipeline in Shaanxi Province is not yet within the scope of asset allocation of the national pipeline network company, but according to the idea of "national one network", there are few provincial pipeline network companies that can truly exist alone in the future, and provincial pipeline network companies may also be integrated into the national pipeline network company in a market-oriented way.

Guo Jiaofeng, Research Institute of Resources and Environmental Policy Research Institute of the Development Research Center of The State Council, believes that even if the Shaanxi pipe network can exist alone for a long time, to extend the advantages of oil integration to full play, still need strong synergies.

The natural gas production of Yanchang Oil is concentrated in northern Shaanxi, and the gas market is mainly in central Guanzhong area such as Xi 'an and southern Shaanxi. The distance between resources and markets is relatively far, and some local pipelines cannot cover it.

In order to integrate the upper, middle and lower reaches, resources, pipelines and markets need to play a good synergistic effect. Therefore, prolonging oil will face investment and management pressure.

Limited resource exploration area is another dilemma for the extension of oil development and natural gas industry.

Yanchang Petroleum has a total registered oil and gas exploration area of about 80,000 square kilometers in 38 cities (counties) and 10 provinces including Shaanxi, Inner Mongolia and Ningxia, of which about 10,700 square kilometers are in the province and about 69,600 square kilometers are outside the province.

Such oil and gas bottom still can not be compared with "three barrels of oil". CNPC's Changqing oilfield alone spans Shaanxi, Gansu, Ningxia, Mongolia and Shanxi provinces (regions), with a total exploration area of 370,000 square kilometers.

In addition, the natural gas recovery rate of Yanchang Oil is about 20%, and the recovery rate of Changqing oil field is 50%. This means that if a well has 1 million square meters of gas, Yanchang Oil can only produce 200,000 square meters under existing technology conditions, and Changqing oil field can produce 500,000 square meters.

To increase production, it is necessary to continuously increase the number of drilling Wells and expand the range of resources.

There have been many disputes between Yanchang Oil Field and Changqing oil field because of resource competition. According to the data provided by Changqing Oilfield to Jiemian News, from 2007 to the beginning of 2018, Yanchang Petroleum infringed 150 Wells and infringed drilling sites within the scope of mineral rights of Yulin Gas field, Zizhou gas field and Shenmu gas field, the core blocks legally registered in Changqing oilfield.

Yanchang also has a presence in shale gas. In 2011, it was drilled into China's first continental shale gas and fractured to produce gas.

Up to now, Yanchang Petroleum has initially implemented shale gas geological reserves of 160 billion cubic meters, but the cumulative production capacity of shale gas Wells is only 500 million cubic meters, accounting for about 5% of the total output of shale gas in the country.

In Guo Jiaofeng's view, if the Yanchang oil and gas sector wants to achieve great development, marketization is the only way out and direction.

Guo Jiaofeng suggested that Yanchang Oil should carry out a more thorough mixed reform of the newly established Yanchang Natural Gas Company, take out more equity to introduce private capital, stimulate its development vitality, and provide a breakthrough for the play of integration advantages.

Secondly, through the extension of the Natural gas Company holding Group's upstream and downstream business of the natural gas sector. "In this way, it is possible to benchmark large urban gas companies such as ENN Gas and China Resources Gas in the natural gas sector." Guo Jiaofeng said.