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Essay on China and the Global Petroleum Industry
With the collision of the worldwide monetary droopiness, the economic growth in petroleum and chemical industries in China slowed down in 2001. Oversupply was still going on in most fields, the product prices went down, the economic performance was reduced and the import and export trade growth became slower. Contrary to the output growth, the price had a drop for more than 80% of chemical products. Taking the crude oil for instance, due to the global economic slackness, the demand for crude oil in the international market reduced and the oil price had great fluctuations. It slowly but surely slid down to 17 U. S. dollars per barrel and the price at the end of the year was more than 30% lower than the price at the beginning of the year. According to the report of CPCIA (China Petroleum and Chemical Industry Association), China's economy increasing rate slowed down in Q2, especially in those high energy-consumption sectors supervised by the government. The growing rate is still very high despite of the slowdown, pouring brisk demand on some chemicals such as soda ash, calcium carbide and synthetic resins.
In the first half of 2004, the total production value achieved by China's petroleum and chemical industry was RMB1 119.97 billion, growing by 27.4%. The top growth rate was from the synthetic materials manufacturing sector, saying 35%. Crude oil refining, composed the basis of chemical industry, remained an increase of 17.9%. Government gave more preferred policy in power and delivery to the chemical fertilizers manufacturing sector, causing a two-digit growth in urea production.
Tire production remained high increase speed because the local auto output reached an increase of 26.9% in H1.
The petroleum and chemical industry in China made a rapid growth in the first quarter of this year. Both the economic performance and the import and export trade had a drastic increase..........
