Study On The Vertical Integration Of China 's Petroleum Industry

A long time, the oil industry has been widely used in Western scholars to analyzethe motives of vertical integration and effectiveness. An important reason of scholarsfavoring the oil industry is that it is easy to distinguish various stages of the industrychain, helping to carry out theoretical research. The reason is also that oil is animportant part of the energy, oil industry is the basic industry of the national economy,the vertical integration strategy has a strong practical significance.Since the restructuring of the oil industry in1998, with China Petroleum, ChinaPetrochemical, represented by two national vertically integrated oil companies havebeen making efforts. Sinopec layout upstream mining, China Petroleum push intorefinery sales. Currently, two major oil firms possess the crude oil extraction-processing-sales of a complete industrial chain. But how its degree of verticalintegration, where the short board is and how the relationship between corporateperformance, combined with the course of development of large foreign oil companiesto explore the future development trend of China’s oil industry, and is the focus of thisstudy countermeasuresMeasuring the degree of vertical integrationis the core of the full text.It’s the firsttime to combine the traditional methods and the specific method.Applying AM,VASand P-R-M to the two companies in order to reflect the full extent of China’s oil industry,vertical integration of the whole picture.Innovation is further subdivided into thevertically integrated production and refining refining integrated marketing integration.Through empirical research, found that low levels of production of the oil refiningindustry integration is where the short board, improve labor productivity in China’s oilcompanies to increase production lies in refining integration.