| Since the reform and opening up,certain process has been made in China’s petroleum industry.Sinopec was separated from Ministry of Petroleum Industry in 1983.CNOOC and Petro China established in 1988,since when we separate government from enterprises formally.In early years,these three major petroleum companies engaged only in the upstream petroleum exploration and production work.It did not involve downstream petroleum refining or the wholesale and retail businesses,etc.,which led to low economics of scope.In order to give full play to their economies of scope,Chinese government proposed restructuring in petroleum enterprises.They reintegrated upstream and downstream business in China’s petroleum industry.After the reorganization of vertically integrated petroleum enterprises business model,we formed "three pillars" of the situation by three petroleum companies.After 2000,many petroleum companies were listed domestic and foreign.We began to use modern enterprise management system.After joining the WTO,according to WTO commitments,we liberalized refined petroleum wholesale and retail business in China’s petroleum industry gradually.Since 2014,we begin starting mixed ownership reform initiatively,mainly in the petroleum refining business and sales operations downstream.In 2015,Petro China started to accept private capital in its petroleum pipeline business and an independent accounting Eastern Pipeline Company was established.However,after a series of reforms,there remains to be strong barriers to entry when private enterprises tried to enter petroleum industry.The structure of China’s petroleum industry is still highly monopolistic and there is still administrative monopoly in most of the business areas which leads to the loss of efficiency in the industry.In order to reduce efficiency losses,combined with the technical and economic characteristics of the industry,we designed restructuring mode and governmental regulatory system which is in lining with the characteristics of China’s petroleum industry.In particular,includings and conclusions are as followings:(1)This paper compares and calculates the productivity between domestic and foreign oil companies.Without considering the advances in technology,there are two common assumptions that is constant returns to scale assumption and variable returns to scale assumption.The gap between the two lies in the enterprise scale efficiency.Under constant returns to scale assumption,the productivity of China’s oil companies is subject to the industry structure and government regulation and other factors.Under the assumption of variable returns to scale,China’s oil companies are also subject to industry structure.When considering technological progress,TFP of China’s oil companies includes:industry structure,government regulation,internal management.Hence,the productivity of China’s oil companies are subject to the industry structure,government regulation,the scale of production and other factors.Among them,governmental regulations and structural factors are important in affecting the productivity of China’s petroleum industry.This article will discuss these two aspects.(2)Considering the structure of China’s petroleum industry,the paper estimates the efficiency loss in the industry.There is a considerable degree of oligopoly in the different business areas of China’s petroleum industry,and barriers to entry in the industry exacerbated the industry’s monopoly.Overall,the China’s petroleum industry is an oligopoly market;if we see it from a different point of view on the industry chain,these businesses which are petroleum exploration and mining operations,petroleum storage and transportation business,petroleum refining business,sales of petroleum,have varying degrees of monopoly which has already led to efficiency losses.Without considering outliers,productivity losses in China’s petroleum industry were increasing and the ratio of productivity loss to income was rising too.Allocate efficiency loss increased significantly and the ratio of productivity losses to income decreased too.As a result,the total efficiency losses of China’s petroleum industry were rising,and the trend of efficiency losses to income ratio rose after the first drop.Therefore,in order to reduce efficiency losses,we need to accelerate market restructuring,remodeling industry regulation system,and effectively shorten the efficiency gap between domestic and foreign oil companies.(3)In order to improve productivity and reduce efficiency losses,the paper designed four China’s oil industry restructuring model.Making good use of the market mechanism and effective competition,but without destroying the economies of scale of the industry,which is the overall objective of restructuring the oil industry.China’s oil industry restructuring goal is to break the monopoly and to use the mechanism of competition actively.To achieve this goal,there are two ways which are restructuring in China’s oil industry and the access to regulatory coordination.First,we designed four restructuring models which are Mutually Beneficial Networking Model,Access Control Model,the Joint Ownership Model,Ownership Separation Model.There are advantages and disadvantages in all these models.These four models can be used not only in combination,but also in different development stages of China’s petroleum industry.Complementary advantages between different models may be more appropriate and reasonable with practical needs.This paper argues that Mutually Beneficial Networking Model and Access Control Model is appropriate policy options right now.Mutually Beneficial Networking Model focuses on interconnection petroleum pipeline network and increasing the competitiveness of the petroleum industry.The emphasis of Access Control Model is to maintain the oil industry economies of scope and to avoid splitting the original enterprise.In the meanwhile,in order to ensure that the effects of market restructuring,this paper offered differenced regulation of the differenced entry regulation differenced price regulation and distribution enterprises of different ownership in the restructuring process.(4)Forced by restructuring regulation system reform,the paper constructed the framework of government regulation reform of China’s petroleum industry and its realization.We built a new governmental regulatory system in China’s petroleum industry and the ways to achieve.In order to "rule by laws and rules,run efficiently,open transparently,effective incentive",this new regulatory system includes four parts,which is the system of laws and rules,regulatory agencies system,supervisory authority system,evaluation system of regulatory performance.The system of laws and rules is the basis for the governmental regulation.The regulatory system is main execution.The supervisory authority system is the protection that governmental regulation could run effectively.The regulation performance evaluation system is to improve the scientific regulation.Then this paper discussed the basic realization of China’s petroleum industry which are--to build a perfect regulatory policy system,an efficient regulatory agency system,a multivariate supervisory authority system,a scientific evaluation system of regulatory performance,in order to form a market economic system that can adapt the petroleum industry governmental regulatory system.Compared with the existing achievements,the paper may have innovations in the following areas:(1)We used data from the Osiris oil companies database to calculate and compare the productivity of major domestic and foreign oil companies,and we estimated the efficiency loss in China’s oil industry.Currently more scholars are concerned about the use efficiency of oil companies,and the productivity measures from the supply side is few.Moreover,the comparation between domestic and foreign oil companies is less.Taking the increasing internationalization of oil production and processing into account,the comparation between domestic and foreign oil companies is more meaningful.From data selecting side,this paper selected data from the Osiris oil companies database which is publicly listed and high reliable,the reliability of the source of data is the cornerstone of this paper.(2)In this paper,We designed several restructuring models combined with China’s characteristics.We designed four restructuring models which are Mutually Beneficial Networking Model,Access Control Model,the Joint Ownership Model,Ownership Separation Model.The innovation of restructuring models in this paper is that,on the one hand,these models are integrated closely technical and economic characteristics of China’s petroleum industry.We introduced different levels of competition depending on the nature of the various types of petroleum business.On the other hand,depending on the policy preferences and petroleum industry development stage,these four modes can be used combined.(3)In this paper,we built the governmental regulatory system for China’s petroleum industry and we proposed several ways to achieve.Right now governmental regulation system contains the system of laws and rules,regulatory agencies system.Innovation of this paper is that we added supervisory authority system,evaluation system of regulatory performance into this system.In other words,we presented a regulatory framework including "the System of Laws and Rules,Regulatory Agencies System,Supervisory Authority System,Evaluation System of Regulatory Performance".This regulatory framework is to "Rule by Laws and Rules,Run Efficiently,and Open Transparently,Effective Incentive".In order to build and improve governmental regulation of the petroleum industry system that is suitable for China’s petroleum industry through four perspectives,we proposed four pathways to achieve our goals and the pathways are:to build a perfect regulatory policy system,an efficient regulatory agency system,a multivariate supervisory authority system,a scientific evaluation system of regulatory performance.Of course,there are still shortcomings which are:First,it is method choosing problems.In this paper,the calculation of efficiency loss in China’s oil companies could be improved.This article divide the efficiency loss into productivity loss and allocation efficiency loss.The productivity loss calculation used the formula "production costs*(1-the relative efficiency)" and allocation efficiency loss calculation used a simple equation.These two methods were too much easier.Although this calculation method in the field of energy efficiency loss measure has been widely used,but as part of a doctoral thesis,which is still a bit thin.Second,there are many ways to improve production efficiency of China’s petroleum industry and the paper has discussed only in terms of restructuring.There are several ways to improve the efficiency of petroleum production,including the reform of ownership structure,market restructuring,governance and other structural changes.Each reform can promote the productivity efficiency of the petroleum companies to some extent.Limited by time and space,this article has just selected the core part to study.In other words,this study is on the market restructuring of China’s petroleum industry.We did not explore other parts in the paper.Further studies can be carried out in-depth reform of the ownership restructure,changes in the governance restructure.Third,the conjunction between governmental regulatory system reform and China’s petroleum industry is not close enough.Due to the nature of the petroleum industry,there are several special attentions,for example,petroleum is an important strategic resource and we can not ignore the security of information resources.Long in short,the governmental regulation in a single industry should reflect industry characteristics and combing with this industry closely.This governmental regulatory system design of China’s petroleum industry is somewhat vulnerable. |
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