For some days ago, the media accused the two oil giants of "oil upgrades are not in place." An authoritative person in the Sinopec technical department said in an interview with a reporter from the “First Financial Daily†yesterday that China’s current high gasoline consumption and its associated equipment manufacturing speed cannot keep up with the key reason for slower oil upgrades. There are also industry insiders that China's existing refined oil pricing mechanism may also be the reason why oil upgrades cannot be put in place.
Technical obstacles?
Some experts pointed out that the standard setting of gasoline and diesel is currently determined by the standards committee, and most of the members of the standard committee of the vehicle fuel standard come from within the oil company. Therefore, environmental protection and automobile industry people have insufficient right to speak about fuel standards. . Slower oil quality upgrades may be related to this reason.
The aforementioned management of Sinopec stressed that one of the core issues in the upgrading of oil quality is due to insufficient supply of equipment. The source told reporters that there is a device called "high-pressure reactor" in the process of refining petroleum. Since both Chinese government and enterprises tend to use domestic equipment, under the promotion of PetroChina and Sinopec and other companies, there are currently domestic companies that can manufacture high-pressure reactors. "But there are only 3 in China."
For equipment manufacturers of high-pressure reactors, as long as the state announces that they must upgrade their oil products in a certain city, the orders of these equipment manufacturers must be fully booked, and there is basically no capacity to expand production.
“A high-pressure reactor will take at least 10 years or even 20 years. It is assumed that more than 30 provinces, municipalities and autonomous regions across the country have launched high-pressure reactors and used for oil upgrades. These equipment manufacturers also expand production at the same time across the board, rather than step-by-step manufacturing. Then, after they finished manufacturing, did they still have no way to maintain their operations?"
He said that the entire oil upgrading process involves multiple companies and departments. “The upstream is a manufacturer of crude oil and oil products, the middle reaches are oil companies, the downstream is automobiles, and cars are also connected to the Ministry of Environmental Protection. The Ministry of Environmental Protection should be more anxious. After promoting China's IV standard gasoline and diesel products, after all, China's current emission standards are still behind those of Europe and the United States, and this kind of mood is understandable to us."
Pricing mechanism Mr. Li, a former senior executive of Sinopec Group, revealed to reporters that the essential difference between the "National IV Standard" and the "National III Standard" is mainly the content. At present, the "National IV Standard"* content should be reduced by two-thirds on the basis of the National III standard, which means that there must be better off facilities in the refinery equipment.
"Reducing the content of * involves increasing the number of refining equipment, blending equipment and other steps. These equipments are all invested heavily," said Mr. Li.
The capital investment for a refinery depends mainly on the source of the oil product. If it is a light crude oil, then the input is relatively small, but if it is a heavy oil, that is, if the content is more, then the input of refining equipment will be It may be very large, estimated at 100 million yuan or even higher.
Incomplete statistics show that since 2005, Sinopec has invested a total of tens of billions of yuan for newly-built and overall transformation of oil refineries. Mr. Li emphasized that Sinopec is not incapable of increasing the capacity of refineries, and that “upgrading oil products†and adding off-loading devices are mature technologies. It is also reported that the indicators of products of refineries such as Shanghai Petrochemical, Gaoqiao Petrochemical, Yanshan Petrochemical, and CNOOC Huizhou have reached the quality requirements of Euro IV (equivalent to “National IVâ€).
"However, in the current situation that refined oil is priced by the government, the refining company invests so much money in upgrades and reconstructions, where is the return?" Mr. Li said, "The price is very sensitive, if the two major oil companies are very Big capital has been invested in retrofitting equipment, but in reality this kind of input is not productive, is it a burden for oil companies?"
On April 7 this year, the Development and Reform Commission raised gasoline prices by 500 yuan/ton, and diesel prices by 400 yuan/ton. Since then, although international crude oil prices have fallen, domestic prices have not been raised or lowered.
Some analysts believe that these costs can actually be absorbed by companies such as Sinopec and PetroChina. As an integrated company, the two companies will indeed lose money because of the pricing mechanism, but they are profitable in the sales of gasoline, diesel and chemicals, and sales of crude oil, and cannot completely upgrade the oil products. The insufficiency was due to the refined oil pricing mechanism.
Technical obstacles?
Some experts pointed out that the standard setting of gasoline and diesel is currently determined by the standards committee, and most of the members of the standard committee of the vehicle fuel standard come from within the oil company. Therefore, environmental protection and automobile industry people have insufficient right to speak about fuel standards. . Slower oil quality upgrades may be related to this reason.
The aforementioned management of Sinopec stressed that one of the core issues in the upgrading of oil quality is due to insufficient supply of equipment. The source told reporters that there is a device called "high-pressure reactor" in the process of refining petroleum. Since both Chinese government and enterprises tend to use domestic equipment, under the promotion of PetroChina and Sinopec and other companies, there are currently domestic companies that can manufacture high-pressure reactors. "But there are only 3 in China."
For equipment manufacturers of high-pressure reactors, as long as the state announces that they must upgrade their oil products in a certain city, the orders of these equipment manufacturers must be fully booked, and there is basically no capacity to expand production.
“A high-pressure reactor will take at least 10 years or even 20 years. It is assumed that more than 30 provinces, municipalities and autonomous regions across the country have launched high-pressure reactors and used for oil upgrades. These equipment manufacturers also expand production at the same time across the board, rather than step-by-step manufacturing. Then, after they finished manufacturing, did they still have no way to maintain their operations?"
He said that the entire oil upgrading process involves multiple companies and departments. “The upstream is a manufacturer of crude oil and oil products, the middle reaches are oil companies, the downstream is automobiles, and cars are also connected to the Ministry of Environmental Protection. The Ministry of Environmental Protection should be more anxious. After promoting China's IV standard gasoline and diesel products, after all, China's current emission standards are still behind those of Europe and the United States, and this kind of mood is understandable to us."
Pricing mechanism Mr. Li, a former senior executive of Sinopec Group, revealed to reporters that the essential difference between the "National IV Standard" and the "National III Standard" is mainly the content. At present, the "National IV Standard"* content should be reduced by two-thirds on the basis of the National III standard, which means that there must be better off facilities in the refinery equipment.
"Reducing the content of * involves increasing the number of refining equipment, blending equipment and other steps. These equipments are all invested heavily," said Mr. Li.
The capital investment for a refinery depends mainly on the source of the oil product. If it is a light crude oil, then the input is relatively small, but if it is a heavy oil, that is, if the content is more, then the input of refining equipment will be It may be very large, estimated at 100 million yuan or even higher.
Incomplete statistics show that since 2005, Sinopec has invested a total of tens of billions of yuan for newly-built and overall transformation of oil refineries. Mr. Li emphasized that Sinopec is not incapable of increasing the capacity of refineries, and that “upgrading oil products†and adding off-loading devices are mature technologies. It is also reported that the indicators of products of refineries such as Shanghai Petrochemical, Gaoqiao Petrochemical, Yanshan Petrochemical, and CNOOC Huizhou have reached the quality requirements of Euro IV (equivalent to “National IVâ€).
"However, in the current situation that refined oil is priced by the government, the refining company invests so much money in upgrades and reconstructions, where is the return?" Mr. Li said, "The price is very sensitive, if the two major oil companies are very Big capital has been invested in retrofitting equipment, but in reality this kind of input is not productive, is it a burden for oil companies?"
On April 7 this year, the Development and Reform Commission raised gasoline prices by 500 yuan/ton, and diesel prices by 400 yuan/ton. Since then, although international crude oil prices have fallen, domestic prices have not been raised or lowered.
Some analysts believe that these costs can actually be absorbed by companies such as Sinopec and PetroChina. As an integrated company, the two companies will indeed lose money because of the pricing mechanism, but they are profitable in the sales of gasoline, diesel and chemicals, and sales of crude oil, and cannot completely upgrade the oil products. The insufficiency was due to the refined oil pricing mechanism.
Tuofang Metal Product Co., Ltd. , http://www.hsfieldfence.com