SCI GROUP

NEW CHANGES, NEW CHANGERS

Focus on China Oil Refining Industry

China's Independent Refineries: A Cinderella Story


The history of China’s independent refineries can be divided into four stages. The first stage is from 1960 to 1999. Backed by the exploitation of big oil fields and the Chinese economic reform, 21 independent refineries were left in Shandong. In the meantime, the 21 independent refineries were allowed to process 1,793kt of crude oil each year. This is the first stage of China’s independent refineries. And then, from 2000 to 2010, independent refineries tried to survive in the market, through reforms and cooperation with state-owned refineries. From 2011 to 2015, independent refineries expanded their capacity greatly and occupied more market shares, backed by the great increase in Chinese economy.
Chinese independent refineries suffered short supply of crude oil before 2015. In 2009, crude oil only took up around 43% in the feedstock structure of Shandong independent refineries. This limited their development greatly.
From 2015, the independent refineries were approved to process imported crude oil and to import crude oil by themselves. These promised a bright future to the independent refineries, especially the refineries in Shandong. In 2016, the capacity of Shandong independent refineries took up 17% of China’s total capacity. Shandong independent refineries are playing a more and more important role in the world oil refining industry.

New game changer: China’s independent refineries


What’s the actual operation of Chinese independent refineries? Will the refineries’ utilization rates continue rising? Can the independent refineries gain fine gross margins? Will Beijing allow independent refineries to export refined products? Will the refineries import North Sea Oil or import crude oil from Canada? International industry participants

James Gao delivering a speech at Bloomberg Office

After the speech, James discussed with the attendees about Chinese consumption taxes, the gross margins of independent refineries and some other topics. At last, James showed some data reports and study reports about the China’s oil refining industry. And some oil traders, universities, banks and organizations announced to build deep cooperation with SCI Group.
Sublime China Information Co.,Ltd. (www.sci99.com), founded in May, 2004, is the leading commodity market information service organization in China. SCI Group focuses on the commodity market, and have built 50,000 information acquisition sites in the world.
SCI Group insists third-party standpoint over the past years, devotes itself to monitoring bulk commodity prices which can trace back to 20 years ago, and sets up the biggest database in Asia. The data reports of SCI Group are highly respected in the world and provide data support and basis of strategies for global media, industrial clients, financial organizations, exchanges and research institutions.

are eager to know clear answers to such kinds of questions.On February 21, 2017, James Gao, an industry analyst at SCI Group was invited by Bloomberg to attend the International Petroleum Week in London.
James Gao delivered a speech at the topic of Evolution of Chinese Independent Refineries at Bloomberg Office. International Petroleum (IP) Week, hosted by the Energy Institute (EI) is a renowned event where leaders from the global oil and gas industry share their wealth of knowledge and experience with fellow experts over three days of conferences, seminars, roundtables and social events.
At Bloomberg Office London, James Gao talked about the evolution of China’s independent refineries. James explained why the independent refineries in independent refineries. James explained why the independent refineries in Shandong Province play an important role in China’s oil refining industry through the speech, and he analyzed the run rate of independent refineries’units and China’s policies on refined products’export.

James Gao taking photos with sponsors