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Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
Market Research Report :Oil and Gas Market in China 2012
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Market Research Report :Oil and Gas Market in China 2012

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For the complete report, get in touch with us at : info@netscribes.com …

For the complete report, get in touch with us at : info@netscribes.com

Oil and Gas sector in China is expected to witness tremendous growth owing to the robust growth of the economy of China.

The report begins with a detailed overview of the global oil and gas market that includes detailed coverage of global production, consumption and reserves for both oil and gas. This section features a detailed study on the global scenario of the oil and gas production to reserve ratio. It also illustrates the regional split of oil and gas production to reserve ratio. A snapshot of the oil and gas market in China covers the demand, production and consumption levels for both oil and gas. Furthermore, a timeline description of the development of the Chinese oil industry has also been included in this section. This section also incorporates major oil and gas hubs in China.

The report provides detailed information about the exports and imports of oil and gas in China. It provides country-wise import and export for the year 2010 both in terms of value and volume.

Key drivers of the industry explain the factors influencing the growth of the oil and gas market in China in detail. Some of them include untapped potential, rising population and urbanization, growing automobile sector, low penetration, power generation and growth in petrochemical industry. Major challenges that could impede the development and growth of the Chinese oil and gas market include foreign dependence, reduction in CO2 emission and increase in renewable energy mandates.

The government initiatives section includes a detailed description of the development of energy regulatory framework in China covering key steps taken by the government in the 12th five year plan to accelerate the growth of oil and gas market during 2010-15. This section also highlights the key tax and pricing reforms adopted by the government to boost the oil and gas market in China.

Key emerging trends that are of marked importance to the oil and gas market in China include construction and expansion of LNG terminal, construction and upgrading of oil refineries, overseas investments and reliance on unconventional gas.

The competition section outlays the competitive landscape of the oil and gas market in China briefing about the domestic and foreign players existing in the market. This section provides a three dimensional analysis of key players’ total income, profits and market capitalization. The report also features brief profiles of major domestic and foreign players in the market and a snapshot of their corporation, financial performance, business highlights and their product portfolio, providing an insight into the existing competitive scenario.

Some of the key statistics or factors impacting the oil and gas market in China covered in the report include, global market size, global oil and gas reserves, reserve to production ratio of oil and gas, domestic market size, depth of reserves, quality of

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  • 1. Insert Cover Image using Slide Master View Do not distortOil and Gas Market in ChinaMarch 2012
  • 2. Executive Summary  Domestic oil demand is expected to reach x mn tonnes growing with a CAGR of y% during 20‐ ‐ ‐ 20‐‐ Market  Domestic gas production reached z bcm growing with a CAGR of a% during 20‐‐ ‐ 20‐‐  Oil and Gas accounted for b% of China’s energy consumption mix in 20‐‐ Drivers:  Untapped Potential LE   Challenges:  Foreign Dependence P  Rising Population and Urbanization   Reduction in CO2 Emission Drivers &   Growing Automobile Sector M  Increase in Renewable EnergyChallenges  Low PenetrationGovernment  S A  Power Generation  Growing Petrochemical Industry  Chinese 12th Five Year Plan Initiatives  Tax and Pricing Reforms  Construction and Expansion of LNG Terminal  Construction and Upgrading of Oil Refineries Trends  Overseas Investments  Reliance on Unconventional Gas Major PlayersCompetition Company 1  Company 2 Company 3 Company 4 Company 5 Company 6 OIL AND GAS MARKET IN CHINA 2012.PPT 2
  • 3. •Market Overview • Global • China LE   MP•Exports and Imports•Drivers & Challenges S A•Government Initiatives•Trends•Competition•Key Takeaway OIL AND GAS MARKET IN CHINA 2012.PPT 3
  • 4. Global oil consumption grew z% in 2010, registering an  increase of g mn tons from 20‐‐ Global Oil Market – Overview Global Oil Production CAGR of y % during 20‐‐ ‐ 20‐‐ LE   • Global oil production reached x4 mn tonnes growing with a  y% z% P mn tonnes • Global oil consumption reached 4,028 mn tonnes growing  x1 x2 x4 x3 with a CAGR of 0.2% during 2007‐10 4,000 SAM • Due to economic recovery post recession in 20‐‐ ‐ 20‐‐, global oil  consumption surged by z% in 20‐‐over the previous year • Global oil reserves increased from y1 thousand mn barrels in  20‐‐ to y4 thousand mn barrels in 20‐‐ 3,000 2,000 1,000 • Country 4 accounted for b4% of the global oil reserves in 20‐‐,  0 registering a decline of r% percentage points during 20‐‐ ‐20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Global Oil Reserves Global Oil Consumption‘000 mn barrels p% Country 1 mn tonnes q%1,500 z2 Country 2 b1% 5,000 z1 b2% y1 y2 y3 y4 Country 3 4,0001,000 a2% a1% b3% a3% Country 4 3,000 b4% Country 5 2,000 500 a4% Country 6 1,000 b5% b6% 0 a6% a5% 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ OIL AND GAS MARKET IN CHINA 2012.PPT 4
  • 5. Global gas production grew by y% in 20‐‐, increasing e bcmfrom 20‐‐Global Gas Market – Overview Global Gas Production z% during 20‐‐ ‐ 20‐‐ LE  • Global gas production reached x4 bcm growing with a CAGR of  y% z% P bcm• Global gas consumption reached y4 bcm growing with a CAGR  x1 x2 x4 x3 of p% during 20‐‐ ‐ 20‐‐ 4,000 SAM• Country 4  accounted for b4% of the global gas reserves in 20‐ ‐ registering an increase of t% during 20‐‐ ‐ 20‐‐• Global gas reserves increased from s1 tcm in 20‐‐ to s2 tcm in  20‐‐ 3,000 2,000 1,000 • In 20‐‐, Place 1  and Place 2 registered d% decline in gas  0 reserves from 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Global Gas Reserves Global Gas Consumption tcm p% bcm q%1,500 z2 b1% Country 1 5,000 z1 b2% y1 y2 y3 y4 4,0001,000 a2% a1% b3% Country 2 a3% 3,000 Country 3 500 a4% b4% 2,000 Country 4 Country 5 1,000 b5% b6% 0 a6% a5% 0 Country 6 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ OIL AND GAS MARKET IN CHINA 2012.PPT 5
  • 6. In 20‐‐, global R/P ratio of oil and gas was x and y respectivelyGlobal Oil Reserves Global Oil Reserve to Production Ratio• At the end of 2010, global R/P ratio of oil was x LE   100 a2 a4 P• In 20‐‐, R/P ratio of oil was the highest for Country 2  at a2 50 a5 SAM• In 20‐‐, R/P ratio of oil was the lowest  for Country 1  and Country 2 at a1 each 0 a1 a3 Country 1 Country 2 Country 3 Country 4 Country 5 Country 6 a6 Global Gas Reserves Global Gas Reserve to Production Ratio • At the end of 20‐‐, global R/P ratio of gas was y 80 b4 b3 60 b2 • In 20‐‐, R/P ratio of gas was the highest for Country 5  40 b5 at b5 20 b1 • In 20‐‐, R/P ratio was lowest for Country 1 at b1 0 Country 1 Country 2 Country 3 Country 4 Country 5 Note: Reserves‐to‐production (R/P) ratio: If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time  (yrs.) that those remaining reserves would last if production were to continue at that rate. Proved reserves of natural gas – Generally taken to be those quantities that geological and engineering information indicates with reasonable certainty can be  recovered in the future from known reservoirs under existing economic and operating conditions. OIL AND GAS MARKET IN CHINA 2012.PPT 6
  • 7. China is the world’s second largest consumer of crude oil; oil consumption witnessed a growth of x% during 20‐‐ ‐20‐‐Domestic Oil Market – Overview Domestic Oil Demand growing with a CAGR of x1% during 20‐‐ ‐ 20‐‐ LE• Domestic oil demand is expected to reach a3 mn tonnes    mn tonnes x1% P 600 a3• Domestic oil production reached c4 mn tonnes growing  a1 a2 M with a CAGR of x2% during 20‐‐ ‐ 20— 400 SA• Domestic oil consumption reached b4 mn tonnes  growing with a CAGR of x3% during 20‐‐ ‐20‐‐ 200 • In 20‐‐ the R/P ratio of oil in China was t  implying that if oil  production continues at the current rate the reserves would last for  0 only t years 20‐‐ 20‐‐e 20‐‐eDomestic Oil Production Domestic Oil Consumption x2% x3%mn tonnes mn tonnes q% p%250 500 b4 c2 c3 c4 b3200 c1 400 b1 b2150 300100 20050 100 0 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ OIL AND GAS MARKET IN CHINA 2012.PPT 7
  • 8. Development of oil industry in China SAMPLE Event 1 Event 2 Event 3 Phase I Phase II Phase III Phase IV 19‐‐ ‐19‐‐ 19‐‐ ‐19‐‐ 20‐‐ ‐ 20‐‐ 20‐‐ ‐ Present• Point 1 • Point 2 • Point 3 • Point 4 8
  • 9. Demand and consumption of gas in China is higher than production leading to foreign dependenceDomestic Gas Market – Overview Domestic Gas Demand CAGR of x1% during 20‐‐ ‐20‐‐ LE  • Domestic gas production reached a4 bcm growing with a  bcm x5% P 150• Domestic gas consumption reached b4 bcm growing with  c2 c1 M a CAGR of x3% during 20– ‐ 20‐‐ 100 SA• Natural gas demand is expected to reach c2 bcm with a  CAGR of x5% during 20‐‐ ‐20‐‐ 50 • In 20‐‐ the R/P ratio for gas in China was t implying that if gas  production continues at the current rate the gas reserves would last  0 for another t years only  20‐‐ 20‐‐eDomestic Gas Production Domestic Gas Consumption x1% x2% x3% bcm bcm x4% a4100 120 b4 a2 a3 80 100 b3 a1 b2 80 b1 60 60 40 40 20 20 0 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ OIL AND GAS MARKET IN CHINA 2012.PPT 9
  • 10. Major oil fields are concentrated in Eastern China accounting for t1 a and t2 b oil fields LE  Major Oil Fields in China MP A• x% of total oil production in China is from a oil fields, remaining y% contributed by the b oil fields S• Majority of the growth in Chinese oil production is expected to be from the Chinese b oil fields b exploration and production activities has increased over the years particularly in the Bay 1 and the Sea 1 region x2 x3 x1 x5 x4 x6 x7 x8 b Oil Fields OIL AND GAS MARKET IN CHINA 2012.PPT 10
  • 11. Three major gas basins contribute x% of the natural gas production in China LE  Major Gas Basins in China MP• Basin 1 in the south west, basin 2 and Basin3 in the north west and basin 4 in the north account for x% of the natural  SA gas production in China• Place 1 is the largest gas producing province in China accounting for z bcf of gas production in 20‐‐• Place 2 is the second largest gas basin in China accounting for p% of the gas production in 20‐‐ x2 x6 x1 x3 x5 x4 b Gas  Fields OIL AND GAS MARKET IN CHINA 2012.PPT 11
  • 12. Country 1 is the major oil exporter to China accounting for  d1% of the total oil imports LE   Oil Market – Exports MP Exports Country Split – 20‐‐ SA USD mn c4% o1% x% c3% c5% o2% Region 1 20,000 a4 a2 c6% o3% Region 2 a3 o4% 15,000 Region 3 a1 c2% Region 4 10,000 o5% Region 5 5,000 c1% Others 0 Country 1 Country 3 Country 5 20‐‐ 20‐‐ 20‐‐ 20‐‐ Country 2 Country  4 Others Oil Market – Imports Imports Country Split – 20‐‐ USD mn d5% y% o6%200,000 d3% d4% o7% Region 6 b2 b4 o8% Region 7150,000 d6% o9% Region 8 d2% b1 b3 Region 9100,000 o10% Region 10 50,000 d1% Others Country 6 Country  8 Country  10 20‐‐ 20‐‐ 20‐‐ 20‐‐ Country 7 Country  9 Others OIL AND GAS MARKET IN CHINA 2012.PPT 12
  • 13. China is the world’s second largest importer of crude oil  importing x% of its consumption Oil Market – Exports Exports Country Split – 20‐‐ mn tonnes x% LE   c4% o1% P c3% c5% o2% Region 1 20,000 a4 a2 c6% o3% Region 2 o4% M a3 Region 3 15,000 a1 SA c2% Region 4 10,000 o5% Region 5 5,000 c1% Others 0 Country 1 Country 3 Country 5 20‐‐ 20‐‐ 20‐‐ 20‐‐ Country 2 Country  4 Others Oil Market – Imports Imports Country Split – 20‐‐ mn tonnes d5% y% o6%200,000 d3% d4% o7% Region 6 b2 b4 o8% Region 7150,000 d6% o9% Region 8 d2% b1 b3 Region 9100,000 o10% Region 10 50,000 d1% Others Country 6 Country  8 Country  10 20‐‐ 20‐‐ 20‐‐ 20‐‐ Country 7 Country  9 Others OIL AND GAS MARKET IN CHINA 2012.PPT 13
  • 14. In terms of value, gas market in China witnessed a trade deficit of over USD x mn in 20‐‐ LE   PGas Market – Exports Exports Country Split – 20‐‐ USD mn 1,500 a2 x1% a3 A x2% S M a4 c3% c4% c5% c6% Country 1 Country 2 Country 3 1,000 c2% Country 4 a1 500 c1% Country 5 Others 0 20‐‐ 20‐‐ 20‐‐ 20‐‐Gas Market – Imports under HS Codes Imports Country Split – 20‐‐ Country 6 USD mn x3% x4% d9% Country 7 d1% 8,000 Country 8 b4 d8% 6,000 Country 9 d7% 4,000 b1 b2 b3 Country 10 d6% d2% Country 11 2,000 d5% Country 12 0 d4% d3% Country 13 20‐‐ 20‐‐ 20‐‐ 20‐‐ Others OIL AND GAS MARKET IN CHINA 2012.PPT 14
  • 15. In terms of volume, Chinese gas market witnessed a trade deficit of y mn tons in 20‐‐ LE   PGas Market – Exports Exports Country Split – 20‐‐ USD mn 1,500 a2 x1% a3 A x2% S M a4 c3% c4% c5% c6% Country 1 Country 2 Country 3 1,000 c2% Country 4 a1 500 c1% Country 5 Others 0 20‐‐ 20‐‐ 20‐‐ 20‐‐Gas Market – Imports under HS Codes Imports Country Split – 20‐‐ Country 6 USD mn x3% x4% d9% Country 7 d1% 8,000 Country 8 b4 d8% 6,000 Country 9 d7% 4,000 b1 b2 b3 Country 10 d6% d2% Country 11 2,000 d5% Country 12 0 d4% d3% Country 13 20‐‐ 20‐‐ 20‐‐ 20‐‐ Others OIL AND GAS MARKET IN CHINA 2012.PPT 15
  • 16. Drivers & Challenges – Summary Drivers LE   Untapped Potential MP Rising Population and Urbanization  S A Challenges Foreign Dependence Growing Automobile Sector Reduction in CO2 Emission Low Penetration Increase in Renewable Energy Power Generation Growth in Petrochemical Industry OIL AND GAS MARKET IN CHINA 2012.PPT 16
  • 17. Presence of high amount of untapped oil reserves to act as a major growth driver for the oil market in ChinaUntapped Potential (1/2) ‐ Oil Reserves Impact• Finding 1• Finding 2 LE  • Finding 3• Finding 4 MP SA Depth* of Reserves Quality of Reserves Regional Distribution Recoverable In Place bn tons bn tons a1 Bn tons 8 10 b1 2,000 7 c8 8 6 1,500 5 6 c9 4 1,000 c6 3 4 c7 2 a2 b2 500 c1 a3 2 c2 69.6 c3 c4 c5 a5 b3 1 a4 a6 a7 a8 b4 b5 b6 0 0 0 Region 1 Region 2 Region 3 Region 3 Region 4 <2000 2000‐5000 3500‐4500 >4500 A B C OIL AND GAS MARKET IN CHINA 2012.PPT 17
  • 18. High untapped recoverable gas reserves in China is a major driver for the growing gas market in ChinaUntapped Potential (2/2) – Gas Reserves Impact• Finding 1• Finding 2 LE  • Finding 3• Finding 4 MP SA Depth* of Reserves Quality of Reserves Regional Distribution Recoverable In Place bcm a1 bcm bcm 8 3,000 b1 2,000 7 c8 2,500 6 1,500 5 2,000 b2 c9 4 1,500 1,000 c6 3 1,000 c7 2 a2 500 c1 a3 500 b3 c2 69.6 c3 c4 c5 a5 b4 1 a4 a6 a7 a8 0 0 0 A B Region 1 Region 2 Region 3 Region 3 Region 4 <2000 2000‐5000 3500‐4500 >4500 OIL AND GAS MARKET IN CHINA 2012.PPT 18
  • 19. Rising population and rapid urbanization to drive the growth of oil and gas industry in ChinaRising Population and Urbanization  Impact•Finding 1 LE   P•Finding 2  Sub‐ Finding 1•Finding 3•Finding 4 SAM Household Energy Consumption Rise in Population Urban population Rural population EJ mn y% 20 1,500 b1 b2 b3 b4 x% a2 15 1,000 43% 47% 52% 57% 10 a1 500 5 57% 53% 48% 43% 0 0 20‐‐ 20‐‐e 20‐‐ 20‐‐ 2‐‐‐e 20‐‐e OIL AND GAS MARKET IN CHINA 2012.PPT 19
  • 20. Rise in demand for automobiles acts as a major growth driver for the oil and gas market in ChinaGrowing Automobile Sector Sales Segmentation (20‐‐) Impact• Finding 1 • Sub‐finding 1 LE   a2%• Finding 2 M • Sub‐finding 2 P SA a1% Passenger Vehicles Commercial VehiclesAnnual Demand – Gasoline and Diesel Automobile Production mn tons mn units c6 300 x% b2 30 y% c5 250 25 b1 200 20 c4 150 15 c3 c1 c2 100 10 50 5 0 0 20‐‐ 20‐‐e 20‐‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐e 20‐‐e OIL AND GAS MARKET IN CHINA 2012.PPT 20
  • 21. Relatively low level of oil and gas consumption is expected to provide a huge opportunity for market growthLow Penetration Impact• Finding 1• Finding 2 LE  • Finding 3• Finding 4 MP SA Per Capita Oil Consumption Per Capita Natural Gas Consumption tons cms3.0 a1 2,500 b12.5 a4 2,0002.0 a3 1,5001.5 a2 1,000 b2 b31.0 a5 a6 5000.5 b40.0 0 Country  Country  Country  Country  China  China  Country 5 Country 6 Country 7 China 1 2 3 4 20‐‐ 20‐‐e OIL AND GAS MARKET IN CHINA 2012.PPT 21
  • 22. Growing capacity of gas fired power plants is expected to act as a major growth driver for the gas market in ChinaThermal Power Generation Impact• Finding 1• Finding 2 LE  • Finding 3• Finding 4 MP SA Thermal Power Capacity Gas Fired Power Plants Installation GW GW b2 60 y%2,000 x% a3 50 a21,500 40 a1 30 b11,000 20 500 10 0 0 20‐‐ 20‐‐e 20‐‐e 20‐‐ 20‐‐e OIL AND GAS MARKET IN CHINA 2012.PPT 22
  • 23. Growth in petrochemical industry to raise the crude oil refinery capacity to x1 mn metric tons in 20‐‐Growth in Petrochemical Industry Impact•Finding 1•Finding 2 LE  •Finding 3•Finding 4 MP SA Oil Product Demand mn tons 400 x% a2 300 a1 200 100 0 20‐‐ 20‐‐ OIL AND GAS MARKET IN CHINA 2012.PPT 23
  • 24. Increase in foreign dependence for oil and gas supply to act as a major challenge to the Chinese oil and gas marketForeign Dependence Impact•Finding 1•Finding 2 LE  •Finding 3•Finding 4 MP SA Foreign Crude Oil Dependence % y% a4 80 a3 60 a2 40 a1 20 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ OIL AND GAS MARKET IN CHINA 2012.PPT 24
  • 25. Reduction in carbon emission under the 12th FYP to emerge as a major challenge to the oil and gas market in ChinaReduction in CO2 Emissions Impact•Finding 1•Finding 2 LE  •Finding 3•Finding 4 MP SA Per Capita CO2 Emission Rise in Non Fossil Fuel Usage tons %8 q% 15 r% p% y%6 10 x%4 a2 a1 520 0 19‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐e OIL AND GAS MARKET IN CHINA 2012.PPT 25
  • 26. Growing emphasis on renewable energy utilization to act as a major challenge to the oil and gas market in ChinaIncrease in Renewable Energy Renewable Energy Share Impact• Finding 1 % x% ad2• Finding 2 15 10 ad1 5 0 20‐‐ 20‐‐e E   Renewable Energy Source  Split L P GW GW z1 z2 a2 300 100% b1% c1% c2% M b2% b3% c3% 20‐‐ 20‐‐e A 250 80% a1 S 200 A 60% B 150 40% b4% c4% C 100 D 50 a3 a4 a6 20% a5 a7 a8 0 A B C D 0% 20‐‐ 20‐‐e OIL AND GAS MARKET IN CHINA 2012.PPT 26
  • 27. SAMPLE Development of energy regulatory framework  in China • Point 1 • Point 2 Regulatory body 1 Regulatory body 2 Regulatory body  3 • Point 1 • Point 2 • Point 1 • Point 3 • Point 2 27
  • 28. Chinese 12th five year plan has outlined several steps to  SAMPLE develop the oil and gas industry in China 12th Five Year Plan‐ Focus on Oil and Gas Market in China Target • Point 1 • Point 2 Initiative 1 • Point 1 • Point 2 • Point 3Initiatives • Point 4 Initiative 2 • Point 1 • Point 2 • Point 3 OIL AND GAS MARKET IN CHINA 2012.PPT 28
  • 29. Acknowledging the need for reforms, China has revised pricing and tax policies of its oil and gas market SA MPLE  Tax and Pricing Reforms • Key Reform 1 KeyReforms • Key Reform 2 Conclusion 1 OIL AND GAS MARKET IN CHINA 2012.PPT 29
  • 30. Trends ‐ Summary SAMPLE  Construction and Expansion of  Construction and Upgrading LNG Terminal of Oil Refineries Trends Reliance on  Overseas Investments Unconventional Gas OIL AND GAS MARKET IN CHINA 2012.PPT 30
  • 31. Chinese oil and gas players are venturing into construction and expansion of…Construction and Expansion of LNG Terminal (1/2) LE  • Finding 1• Finding 2 MP Players invest in  LNG terminals to  A secure unhindered • Finding 3 S supply of natural  gas LNG Terminals – Current and Proposed Development Plans Initial / Expansion  Terminal Name Status/Online Date Developer Possible Supplier Capacity (Mncf/d)‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐ OIL AND GAS MARKET IN CHINA 2012.PPT 31
  • 32. …oil and gas terminals with a view to obtain a secure supply of natural gas  Construction and Expansion of LNG Terminal (2/2) LNG Terminals – Current and Proposed Development Plans Initial / Expansion  Terminal Name Status/Online Date Developer Possible Supplier Capacity (MMcf/d)‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐ SAMPLE  OIL AND GAS MARKET IN CHINA 2012.PPT 32
  • 33. Following a surge in demand for oil, key players are foraying into the construction and…Construction and Upgrading of Oil Refineries (1/2) LE   P• Finding 1 Players invest in oil  M• Finding 2 refineries to  increase  A• Finding 3 production and  S Oil Refinery Projects earn higher profit Company Location Capacity Planned start‐date Features ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ OIL AND GAS MARKET IN CHINA 2012.PPT 33
  • 34. …upgrading of oil refineries to maintain a steady supply of oil Construction and Upgrading of Oil Refineries (2/2) Oil Refinery Projects Company Location Capacity Planned start‐date Features ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ SAMPLE  OIL AND GAS MARKET IN CHINA 2012.PPT 34
  • 35. Chinese players are making overseas investments with a  SAMPLE view to reduce foreign dependence for oil and gasOverseas Investments (1/5) Investment Motivations and Key Initiatives With a view to  increase  Point 1 resource base  overseas  investments are  Point 2 on the rise Point 3 Point  4 Point  5 Point 6 Point  7 Point  8 Point  9 Point  10 OIL AND GAS MARKET IN CHINA 2012.PPT 35
  • 36. Mergers & Acquisitions in Chinese Oil and Gas Market Overseas Investments (2/5)  SAMPLE  Date Target Buyer/ Investor Share Size (USD bn) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Source: EIA OIL AND GAS MARKET IN CHINA 2012.PPT 36
  • 37. Heavy import dependence has led the players to shift their focus on… SAMPLE Reliance on Unconventional Gas  (1/2)• Finding 1 Players are foraying  • Sub‐Findings  into production and  development of  unconventional  resources to reduce  imports Unconventional Gas Type 1 Type 2 Type 3 Conclusion 1 OIL AND GAS MARKET IN CHINA 2012.PPT 37
  • 38. …the development of unconventional sources to meet the growing demand for energy SAMPLE Reliance on Unconventional Gas  (2/2) Shale Gas Non‐ Conventional Gas Reserves • Finding 1 Reserves CBM Shale • Finding 2 Total Reserve ‐ ‐ • Finding 3 Recoverable  ‐ ‐ Resource Proven Reserves ‐ ‐ Coal Bed Methane CBM Location CBM Production • Finding 1 mncf/d mncf/d • Finding 2 b3 60 a1 5 • Finding 3 c% 50 4 40 3 a2 30 b2 2 20 a3 b1 10 1 a4 0 0 North North South North 20‐‐ 20‐‐e 20‐‐e west east OIL AND GAS MARKET IN CHINA 2012.PPT 38
  • 39. Domestic Competition – Summary (1/2) Net Income Size of the Bubble represents Market Capitalization in USD mn28,00026,00024,00022,000 m1 SAMPLE 20,00018,00016,00014,00012,000 m210,000 8,000 6,000 4,000 2,000 0 m4 m3-2,000-4,000 Revenue -50,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Company 1 Company 3 Company 2 Company 4 OIL AND GAS MARKET IN CHINA 2012.PPT 39
  • 40. Domestic Competition – Summary (2/2)Revenue and Profit for Major Domestic Companies  0 5,000 10,000 15,000 20,000 25,000 USD 10,890 Company 1 68 22,230 Company 2 46 106 SAMPLE  Company 3 131 104 Company 4 13 Revenue Net Income OIL AND GAS MARKET IN CHINA 2012.PPT 40
  • 41. Domestic Company – Company 1 Company Information SAMPLE  Locations – China ‐Corporate AddressTel No. xxx‐yyy‐zzzFax No. xxx‐yyy‐zzzWebsite www.xxx.comYear of Incorporation 20‐‐Ticker Symbol ‐‐‐ (‐‐‐)Stock Exchange ‐‐‐ (‐‐‐)Products and Services Category Products/Services HeadquartersCategory 1 Product 1, Product 2 Key PeopleCategory 2 Product 3, Product 4 Name DesignationCategory 3 Product 5, Product 6, Product 7,  Person 1 Vice Chairman Product 8 Person 2 Chief Finance Officer  Person 3 Senior Vice President Category 4 Product 9 and Product 10 Person 4 Senior Vice President OIL AND GAS MARKET IN CHINA 2012.PPT 41
  • 42. Domestic Company –Company 1 Financial Snapshot SAMPLE  Key Ratios Particulars  y‐o‐y change  2010 2009 2008 2007 Total Income Total Income Profit (2010‐09) USD mn USD mn  Profit / Loss a4 Profitability Ratios300,000 a2 2,000 Operating Margin ‐ ‐ ‐ ‐ ‐ a3 1,500200,000 a1 Net Margin ‐ ‐ ‐ ‐ ‐ 1,000 Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐100,000 Return on Equity ‐ ‐ ‐ ‐ ‐ 500 Return on Capital Employed ‐ ‐ ‐ ‐ ‐ 0 0 Return on Working Capital ‐ ‐ ‐ ‐ ‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets ‐ ‐ ‐ ‐ ‐ Financial Summary  Return on Fixed Assets ‐ ‐ ‐ ‐ ‐ Cost Ratios ‐ ‐ ‐ ‐ ‐• The company incurred a net profit of USD x mn in FY 20‐‐, as  Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐ compared to net profit of USD y mn in FY 20‐‐ Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐• The company reported total Income of  USD z mn in FY 20‐‐,  registering an increase of q per cent over FY 20‐‐ Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐• The company earned an operating margin of t  per cent in FY 20‐‐a  Liquidity Ratios ‐ ‐ ‐ ‐ ‐ decrease of g percentage points over FY 20‐‐ Current Ratio ‐ ‐ ‐ ‐ ‐ Cash Ratio ‐ ‐ ‐ ‐ ‐• The company reported debt to equity ratio of r in FY 20‐‐ a decrease  of u  per cent over FY 20‐‐ Leverage Ratios ‐ ‐ ‐ ‐ ‐ Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐Financial Summary  Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐ Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐ Indicators Value (20/02/2012) Efficiency Ratios ‐ ‐ ‐ ‐ ‐ Market Capitalization (USD) ‐ Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐ Total Enterprise Value (USD) ‐ Asset Turnover ‐ ‐ ‐ ‐ ‐ EPS (USD) ‐ Current Asset Turnover ‐ ‐ ‐ ‐ ‐ Working Capital Turnover ‐ ‐ ‐ ‐ ‐ PE Ratio (Absolute) ‐ Capital Employed Turnover ‐ ‐ ‐ ‐ ‐ Improved Decline OIL AND GAS MARKET IN CHINA 2012.PPT 42
  • 43. Domestic Company –Company 1Key Business Segments Exploration and Production Marketing and Retailing SAMPLE  Key Geographic Segments Refinery Chemical Industry 100% 100% The company’s geographic  100% a1% a2% a3% a4% reportable segment is  a5 a6% a7% a8% 50% ‘Country 1’ 50% a9% a10% a11% a12% 0% a13% a14% a15% a16% 20‐‐ 0% 20‐‐ 20‐‐ 20‐‐ 20‐‐ Country1Key Recent Developments Description  News • Company is a petroleum and petrochemical enterprise group functioning as a state Overview authorized investment organization where the state holds the controlling share • In 20‐‐ company has announced plans to increase the country1 crude oil imports from x New business barrels per day under a term contract • In the first half of 20‐‐ company produced t million barrels of crude oil registering a YoYBusiness highlights rise of x %; and produced g billion cubic feet of natural gas registering a YoY rise of y % OIL AND GAS MARKET IN CHINA 2012.PPT 43
  • 44. Foreign Company – Company 2 Company Information SAMPLE  Locations – China ‐ Corporate Address Tel No. xxx‐yyy‐zzz Fax No. xxx‐yyy‐zzz Website www.xxx.com Year of Incorporation 19‐‐ Ticker Symbol ‐‐‐ (NYSE) Stock Exchange New York Stock Exchange Products and Services Regional Office Category Products/Services Category 1 Product 1 Key People Category 2 Product 2 Name Designation Person 1 Chairman Category 3 Product 3 Person 2 Chief Financial Officer  Person 3 Chief Administrative Officer  Person 4 Senior Vice President Source: Company Websites; Press Articles; Databases OIL AND GAS MARKET IN CHINA 2012.PPT 44
  • 45. Foreign Company – Company 2 Financial Snapshot SAMPLE  Key Ratios Particulars  y‐o‐y change  2010 2009 2008 2007 Total Income Total Income Profit (2010‐09) USD mn USD mn  Profitability Ratios Profit / Loss30,000 a4 10,000 Operating Margin ‐ ‐ ‐ ‐ ‐ a2 Net Margin ‐ ‐ ‐ ‐ ‐20,000 a3 Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐ a1 5,00010,000 Return on Equity ‐ ‐ ‐ ‐ ‐ Return on Capital Employed ‐ ‐ ‐ ‐ ‐ 0 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Working Capital ‐ ‐ ‐ ‐ ‐ Financial Summary  Return on Assets ‐ ‐ ‐ ‐ ‐ Return on Fixed Assets ‐ ‐ ‐ ‐ ‐ • The company incurred a net profit of USD x mn in FY 20‐‐, as  Cost Ratios ‐ ‐ ‐ ‐ ‐ compared to net profit of USD y mn in FY 20‐‐ Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐ • The company reported total Income of  USD z mn in FY 20‐‐,  Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐ registering an increase of q per cent over FY 20‐‐ Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐ • The company earned an operating margin of t  per cent in FY 20‐‐a  Liquidity Ratios ‐ ‐ ‐ ‐ ‐ decrease of g percentage points over FY 20‐‐ Current Ratio ‐ ‐ ‐ ‐ ‐ • The company reported debt to equity ratio of r in FY 20‐‐ a decrease  Cash Ratio ‐ ‐ ‐ ‐ ‐ of u  per cent over FY 20‐‐ Leverage Ratios ‐ ‐ ‐ ‐ ‐ Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐Financial Summary  Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐ Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐ Indicators Value (21/02/2012) Efficiency Ratios ‐ ‐ ‐ ‐ ‐ Market Capitalization (USD) ‐ Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐ Total Enterprise Value (USD) ‐ Asset Turnover ‐ ‐ ‐ ‐ ‐ EPS (USD) ‐ Current Asset Turnover ‐ ‐ ‐ ‐ ‐ PE Ratio (Absolute) ‐ Working Capital Turnover ‐ ‐ ‐ ‐ ‐ Capital Employed Turnover ‐ ‐ ‐ ‐ ‐ Improved Decline OIL AND GAS MARKET IN CHINA 2012.PPT 45
  • 46. Foreign Company – Company 2Key Business Segments Chemicals Exploration and Production SAMPLE  Key Geographic Segments Country 1 Country 3 Country 5 Emerging Business Refining and Marketing Country 2 Country 4 Country 6 Midstream b1% c1% a4% a9% a14% 100% b3% c2%100% a2% a1% a5% a10% a15% b2% b6% c4% c3% a6% a11% a16% a7% a12% a17% b4% c5% 50% a3% 50% a8% a13% a18% b5% c6% 0% 0% 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐Key Recent Developments Description  News • Company is the xth largest energy company in the country 9 based on market Overview capitalization and proven reserves and production of oil and natural gas • Company is investing in several emerging businesses like development of integrated  power generation, new technology projects to support exploration, production, refining New business and marketing of oil and gas products • Company 3  signed an agreement with the company to lease oil; and natural gas at Lowry  for USD x mn OIL AND GAS MARKET IN CHINA 2012.PPT 46
  • 47. Led by rising investments and infrastructure construction, Oil and gas market in China to witness robust growth SAMPLE Chinese energy industry has tremendous growth opportunity as the unexplored reserves of oil and gas available less  than 2000 feet is estimated to be X% and Y% respectively Opportunities in the  Government  Market Size Market InitiativesHuge untapped oil and gas reserves to act as a major  Oil Demand Gas Demand Measures to boost growth driver for the oil  the Oil and Gas  mn tonnes x1% bcmand gas market in China x5% industry has been a  600 a3 150 c2 a1 a2 c1 major focus of the  400 100 12th five year plan in  Rising population and  200 50 China urbanization coupled  0 0 with rising automobile  20‐‐ 20‐‐e 20‐‐e 20‐‐ 20‐‐e Reforms in resource  demand and low  tax by the  penetration to  government  significantly contribute to  benefited both the  the growth of the market  buyers and  producers of the oil  Growing investments in  Challenges and gas market gas fired power plants  Pricing reforms has  along with the growing  also been  • Foreign Dependence petrochemical industry  undertaken by the  to lead to rapid market  • Reduction in CO2 Emission government to boost  growth • Increase in Renewable Energy the oil and gas  market OIL AND GAS MARKET IN CHINA 2012.PPT 47
  • 48. Thank you for the attentionThe Oil and Gas Market – China report is a part of Netscribes’ Energy and Utility Industry Series. For more detailed information or customized research requirements please contact: Jitendra Punjabi Phone: +91 33 4064 6215 E‐Mail: jitendra.punjabi@netscribes.comAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. OIL AND GAS MARKET IN CHINA 2012.PPT 48

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