Research On The Development Strategy Of Sinopec East China Branch

As an important industry related to national development and security, the energy industry is facing some crucial changes in recent years, it seems that restructure of the industry is upcoming. Firstly, crude oil price will still be at a relatively high level in the next period of time due to reasons such as rising cost of exploitation and Middle East instability and so on. High oil price will bring more profit to oil companies. Secondly, the conventional oil and gas reserves are limited and will be exhausted at last, as the progress of exploration and exploitation technology, using unconventional gas and oil shows great potential. Compared with conventional ones, the unconventional gas and oil reserves are rich enough to provide the energy for the future world. For the reasons given above, advanced foreign oil companies have already started to adjust their business structures, they treat exploration and exploitation of unconventional resources as very important businesses, and their work has showed results.China is a rapidly developing country with huge energy consumption, however, the domestic production and reserves of oil and gas are far from enough, thus China has to import energy in order to support economy growth. China is rich in unconventional resources, if our country can successfully commercialize the exploration and exploitation of unconventional gas and oil, then the country’s energy crisis will ease greatly. Therefore, the government attaches great importance to the development of unconventional oil and gas fields, and introduces many policies to encourage companies working on unconventional field. This paper aims at studying the strategy management of Huadong Company of China Petrochemical Corporation against the background we discuss above.Huadong Company of China Petrochemical Corporation is a company which is in its transition period. Huadong Company has been working in the unconventional area since 2008, and made several breakthroughs. This paper uses Porter’s Five Force Model and SWOT model to analyze company’s opportunities, Strengths and competitive environment considering all the inner and outer environment of the enterprise. Then we come to the strategy management and specific measures of Huadong Company.In this paper, we present a detailed analysis of changing policy environment and competition situation to which domestic petroleum enterprises are facing. Not only Huadong Company of China Petrochemical Corporation but also other oil firms can benefit from the countermeasure analysis and conclusions.