The development of China's oil refining industry has been stable in recent years, and the overcapacity has been fully developed. At the same time, China's oil refining industry has been exposed to the pain of low oil prices at the same time, at the same time, the pressure of environmental protection is increasing, and the pace of oil quality upgrading is accelerated. From this we can see that the environmental pressure of the survival and development of China's oil refining industry is increasing.

Dissolve overcapacity in an all-round way

In recent years, the development of oil refining industry in China is generally stable, showing the continuous growth of capacity and production, the large-scale, large-scale, integrated and industrial clusters, the continuous development of the industrial cluster, the continuous improvement of the technological level of the refinery, and the continuous improvement of the comprehensive processing capacity and level.

By the end of 2014, the total amount of oil refining capacity in China broke through 700 million tons per year for the first time, reaching 7.02 million tons per year. The increase of oil refining capacity in 2013 was 39 million 500 thousand tons / year, and increased by 6%. New refineries such as Sichuan petrochemical, Guangxi petrochemical, Shijiazhuang petrochemical and Yangzi Petrochemical Plant were added.

The total oil refining capacity of CNPC and Sinopec is 4.63 million tons per year, accounting for 66% of the total capacity, and CNOOC, China chemical industry, medium and chemical and other refinery enterprises and coal oil enterprises are 2.39 billion tons per year, accounting for 34% of the total capacity, and the main body of the industry is diversified. Energy refining in China is still mainly concentrated in North China, Northeast China, East China and Southern China. These four regions account for 33%, 17%, 16% and 14% of the total, respectively, accounting for 80%. Shandong is the largest province of energy refining in China, followed by Liaoning and Guangdong.

It is worth pointing out that, with the rapid growth of China's economy and the surge of oil demand, the upsurge in the new construction and expansion of oil refining for several years has come to an end in 2014.

Under the new normal, the problem of overcapacity has attracted the attention of all parties, and the work of resolving excess capacity has begun. Some oil refining enterprises have taken the initiative to take measures to cancel some modification and expansion projects, and appropriately postponed the completion time of some projects. For example, China petrochemical, North China petrochemical, Jieyang petrochemical and other refineries have postponed the completion of new or expanded projects, such as the completion of the completion of the production time, Dalian West middle island and other oil refining projects have been more delayed to the "14th Five-Year" period and so on; Sinopec canceled the Beijing Yanshan Petrochemical 8 million tons of expansion plan, postponed the two phase of Zhenhai Refining and chemical refining. When the oil project was completed and put into operation, Shandong province has made a preliminary arrangement to eliminate backward production capacity of 12 million tons.

Pain at the same time was hit by low oil prices

Since the second half of 2014, the international oil price has fallen sharply. The price of domestic refined oil is "eleven consecutive drop" in accordance with the new price formation mechanism, which makes the domestic refineries generally appear "high (price of crude oil) into low (price of refined oil)", which has brought great impact and new severe test to the production and management of domestic refineries.

In 2014, the profit rate of oil refinery owner battalion dropped to 0.35%, which was obviously lower than that of the national scale industry and chemical industry. At the same time, with the new normal growth of China's economy, the slowdown in the demand for refined oil, the promotion of energy saving vehicles and the further increase in the amount of alternative energy, the operating rate of refineries in China has continued to decline, and the pain in the transition period has emerged.

Faced with this grim situation, domestic refining enterprises adopt various measures such as reducing costs, strengthening management, tapping potentials and increasing efficiency, so as to actively cope with them and strive to minimize losses. In 2014, the first national crude oil processing volume was first broken by 5 million tons, up to 5.03 million tons, up 5.3% over the previous year. The average construction rate of the national refinery was only 75%, and it has declined for three years in 2012. The production of finished oil in the country was 3.17 million tons, up 7.1% over the previous year, of which the production of gasoline was 110 million 300 thousand tons, 12.3% more than the previous year, 176 million 350 thousand tons of diesel oil, 2.4% from the previous year, 30 million 10 thousand tons of kerosene production, up 19.4% over the previous year, and the rapid growth of gasoline and coal oil and the disintegration of diesel production and sales. China's domestic refined oil supply exceeds demand, and the net export volume of gasoline, coal and diesel has increased for three consecutive years, from nearly 5 million tons in 2012 to nearly 15 million tons in 2014.

Accelerated pace of oil quality upgrading

In recent years, more and more attention has been paid to fog and haze and environmental pollution. Haze weather has become more frequent in many large and medium-sized cities in China. Under the impetus of green low carbon development and strict environmental protection regulations, China accelerated the pace of upgrading oil quality standards. Since the beginning of 2014, the total executive country IV gasoline standard, sulfur content to 50ppm, and the start of the State IV diesel standard at the end of 2014, the sulfur content is also reduced to 50ppm, and the olefin content index is also more stringent. At the same time, the requirements for the lower limit of steam pressure are put forward.

Since the new century, the oil products in China have gone from the lead-free gasoline to the present state IV standard. In more than 10 years, the oil products have gone through the 20~30 years of the European and American countries. The quality of oil has reached the middle and upper level, which is not as good as that of Europe and Korea, but it is higher than that of many countries and regions in Latin America, the Middle East, the Central Asia and Africa. According to the requirements of the state, it will reach the national V standard in 2017, and the sulphur content will fall to 10ppm, which is consistent with the current European standard. By then, the overall impact of oil quality on haze weather will be significantly reduced. But further energy conservation and emission reduction and low carbon green cycle development are still the heavy tasks that the oil refining industry must face.

In addition, the alternative regionalization features of the vehicle are obvious. In 2014, the amount of vehicle alternative fuel has been replaced by conventional gasoline and diesel volume of about 20 million tons, accounting for 7.4% of China's gasoline and diesel consumption. As a substitute for the main vehicle, natural gas has maintained rapid growth, replacing 13 million tons of refined oil. China has become the fourth largest and sixth largest natural gas vehicle market in the Asia Pacific region. Coal oil, fuel ethanol, fuel methanol, biodiesel and electric vehicles all increased slightly or steadily.

The national standard of methanol gasoline M15 has been in operation for 7 years, but it has not yet been published. Methanol is substituted for 1 million 500 thousand tons of gasoline throughout the year. The output of fuel ethanol is basically stable. It is still restricted to 6 provinces and 4 provinces and 27 cities. The production of biodiesel in China is limited to the collection and convergence of raw materials, technical economy, quality and application. The output is only 500 thousand tons per year. There are about 100 manufacturers in the country, but the production capacity is far from being fully released.

Overall, the development of electric vehicles in China is gradually emerging under the support of government policies. The development of coal oil in China is not only in the market, but also in the market.