Shandong Province, United Petrochemical Co., Ltd. Development Strategy

With the substantial and steady development of the economy of China, there has been a great increase in the consumption of petroleum resources. Within the 12 years between 1993 and 2004, the annual increase of oil production is less than 2.5 million tons, while that of the oil consumption is more than 10 million tons. The bottleneck restraint of oil on economic development has been obvious. In the meantime, it is apparent that the continual rise of oil price in recent several years has caused losses on our economy. According to the statistics from the National Information Center, in 2005, purely because of the rise of the price, about 1.2 trillion Yuan RMB of our national wealth was transferred to the oil producing countries and distributors. And according to the estimations of the international energy institutes, China will have to rely on import for 61% of its oil consumption in 2010 and 76.9% of that in 2020, through which we can easily see that to rely on petroleum import has became an unchangeable reality of the economy in China. But on the other hand, as the third largest petroleum import country in the world, china has not had its saying on the world oil market. Thus, It is especially important for us to study how to establish a steady and efficient oil import system, to find out an efficient strategy, to gain for China the saying on world oil market and hence to ensure the oil security of China.Shandong Provincial Petroleum Industry Company ltd. is a state-owned petroleum chemistry circulation joint venture with the imported straight-run fuel as its main business, it is also the sole distributor in Shandong under SINOPEC. Hence, the present essay is aiming to, under the context of the increasing annual import and the overall opening of the domestic market, through the thorough research into the status quo of the outer environment and the future development tendency, and on the basis of general analysis of the internal resources and capability of the company, study and make a series of guidelines, policies, objectives and measures to direct the enterprise practices from a strategic perspective.Based on the above objectives, the data and materials applied in the essay are all drawn from the practical work both home and abroad. Among which the "two-way monopoly" operating model, the first of its kind domestically, was advanced by the...