A Study Of Location Choice On OFDI Of Our Country’s Oil Enterprises

Energy is an important factor in human society development and one country’s economic growth, especially in the complex and volatile situation in the current word political situation, oil has gradually become the important "strategic resources" in today’s society. Oil has become the mainstay energy of today and will last for a very long period, oil has become an important strategic substances in relating to people’s livelihood and even in a country’s economic security and national security.China is a country with a large population, and the growth rate of China’s economy has maintained a high run, both the massive total population and the rapid economic growth have put a serious challenge on consumer demand of oil. Since China’s reform and opening up, the demand for oil has increased day by day. The contradiction of oil supply and demand has become increasingly prominent, the import dependence on oil is increasing year by year, and until2011China’s oil import dependence was as high as56.5%. It is difficult to ensure the long-term stable oil supply heavily dependent on imported oil to meet domestic demand, and the price of oil is difficult to control. Faced with such a severe oil supply and demand situation, China’s energy security will be facing a serious threat. Therefore, we should make oil foreign direct investment to guarantee China’s oil security.When oil companies faced with foreign direct investment, the primary problem is location choice. Because of the large amount of oil investment, if the location choice is inappropriate, it is likely to lead to the loss of investment costs, and affect the investment profit. Therefore, this article selects the location choice on OFDI of our country’s oil enterprises to study. This paper is based on the basic situation of foreign direct investment of China’s oil companies, first of all, elaborates the necessity and feasibility of the foreign direct investment of China’s oil companies, and analyzed the distribution of the world’s oil resources. Secondly, makes empirical research on the location choice of foreign direct investment of China’s oil companies. Finally, this paper also introduced the oil investment experience of the developed countries of The United States and Japan, gives out the problems that should be paid attention to, and the concrete operation suggestions during the process of location choice of oil OFDI of China from the government and enterprise levels.When makes empirical research on the location choice of foreign direct investment of China’s oil companies, this article selected10countries of more oil reserves based on different areas, and chooses18factors which influence the location choice, conduct quantitatively analyze with these factors. First of all, using analytic hierarchy process given the weight of all the factors; then, scoring all the factors according to the investment of the specific conditions of the host country, and multiply the weight of all factors with the score, then conclude the comprehensive score; finally, gives out the choice of investment location suggestion.