On the background of the global financial crisis and low international oil prices, many oil producers have less and less enthusiasm to invest in upstream exploration and many refiners are in the red.
The good news for this industry is the opening of the three-day flagship oil equipment fair which began yesterday and has drawn attention of substantial crowds and gained 30 percent more attendance this year. In particular, a record number of 800 exhibitors from 35 countries and regions join in the Ninth China International Petroleum & Petrochemical Technology and Equipment Exhibition (CIPPE) according to Gao Shan, member of organizing committee.
The focus of the meeting is the nation’s 4-trillion-yuan stimulus package and its plans to revive the 10 pillar industries. The stimulus plans cover at least two sectors—the machinery manufacturing and petrochemical industries.
For the machinery manufacturing industry, the new plans encourage them to enhance their competitiveness through technological innovation, particularly the independent production of components used for major equipment. The purpose of the plans for the petrochemical industries is to increase the domestic demand for oil and petrochemical products.
The stimulus plans plays an important role in the restoration of the petrochemical industries. Under these plans China’s three biggest oil produces, namely Petro-China, China Petroleum and Chemical Corp and China National Offshore Oil Corporation (CNOOC), have been increasing its investment in the domestic and overseas upstream exploration operations. In addition, recently they have started the construction of the second west-east natural gas pipeline which will require large amount of pipes.
“All of this means more opportunities for China’s oil drilling equipment and pipeline makers”, said Zhang Guanjun, deputy general manager, China Petroleum Equipment Manufacturing Branch Company.
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