Research On China's Petroleum Strategy Basic On The International Factor Movements

Petroleum is one of the important energy commodities which impact the current world political and economic pattern. As a factor of natural resources, petroleum's production and consumption is extremely disequilibrium in the world, and petroleum flows frequently in the world.On the one hand, crude petroleum and petroleum products trade have developed rapidly, in many countries the degree of dependence on petroleum imports continued to improve On the other hand, petroleum companies go abroad to open up overseas markets through international M&A to ensure energy supply security.China has become a net crude petroleum importer in 1993, and in 2006 the degree of dependence on petroleum imports had reached 48.4 percent. With the rapid development of economy, energy demand will continue to increase. Petroleum is more important for the country's economic security. The research on the petroleum strategy has a strong practical significance.The article first introduced the traditional international trade theory for the movement of factors and analyzed the special character of the petroleum. Secondly, the article analyzed the current world and China petroleum trade with the latest data and introduced the petroleum companies' transnational M&A, this part is special in the structure.Thirdly, petroleum price is the major media for the effects of the economy, the international petroleum price fluctuations have deep effects for the global economy. There is also Empirical Analysis of the petroleum price and the consumer price index, the import and export volume, and other macroeconomic variables relations. In view of China's refined petroleum pricing mechanism, domestic petroleum prices can not be synchronized with the world market price. And the article also explains the results of the Empirical Analysis.Finally, this paper gives some advice for China's petroleum strategy. The main points include the implementation of the "going out" strategy, support enterprises in overseas acquisitions; establish and improve the strategic petroleum reserve system, as well as petroleum futures market; energy conservation and development of alternative energy sources.