Petroleum equipment manufacturing industry will pick up in the second half of this year

Abstract On September 12-13, the first China International Petroleum Equipment and Heavy Oil Technology Expo was held in Panjin, Liaoning. The future development trend of offshore oil equipment and equipment manufacturing has become a topic of concern to all parties. At the meeting, the reporter of China Energy News interviewed PetroChina...

On September 12-13, the first China International Petroleum Equipment and Heavy Oil Technology Expo was held in Panjin, Liaoning. The future development trend of offshore oil equipment and equipment manufacturing has become a topic of concern to all parties. At the meeting, "China Energy News" reporter interviewed Zhao Zhiming, executive vice president of China Petroleum and Chemical Equipment Industry Association. He served as the deputy director of the Petrochemical General Machinery Bureau of the Ministry of Machinery Industry and the general manager of China General Machinery Engineering Corporation.

Offshore oil equipment manufacturing becomes a short board
China Energy News: Please tell us about the current situation of China's petroleum equipment manufacturing industry. What are the gaps compared with foreign counterparts?
Zhao Zhiming: Since the "11th Five-Year Plan", China's petroleum equipment manufacturing industry has entered a healthy track of sustained and rapid development. The scale of the industry has expanded rapidly, the sales revenue has increased by more than 20% annually, the comprehensive performance of the products has been rapidly improved, and the breakthroughs in high-tech products have been successfully achieved. The ultra-deep well drilling rigs, top drives, large-diameter high-grade steel pipes of 9000 meters and 12,000 meters have been successfully developed. New products such as logging platforms, medium and large power internal combustion engines, and high-power flue gas turbines.
Compared with developed countries, the technical level of China's petroleum equipment needs to be improved, lacking core technologies and fist products with independent intellectual property rights; the research and development forces of various professional machinery research institutes and enterprises are scattered. In addition to the large gap between China's offshore oil equipment and foreign countries, the gap between oil equipment on the land and foreign countries is not large. Among them, complete sets of drilling rigs, cementing fracturing equipment, workover rigs, wellheads, etc. are close to foreign standards; pumping units, electric submersible pumps, and petroleum drill bits are close to foreign advanced levels.

China Energy News: In recent years, with the increasing consumption of petroleum resources and the acceleration of land crude oil exploitation in the world, oil exploration and development in the marine sector has become a new focus. How should China's gap in offshore oil equipment be compensated?
Zhao Zhiming: At present, China's offshore oil exploration and development is mainly concentrated in the continental shelf block, the water depth is no more than 300 meters, the drilling depth is less than 7000 meters, the underwater production system equipment is almost entirely dependent on imports, and the offshore crude oil discovery rate is only 18.5%.
The data shows that the number of offshore drilling platforms owned by China is relatively small. According to statistics, there are about 580 drilling platforms currently in use in the world, and if there are more oil production platforms and oil production vessels, there are more. The platform form includes various new TLP platforms, SPAR platforms, Sichuan-page platform and other multi-functional comprehensive platforms, which are available in various forms and varieties.
The current situation in China is relatively poor. There are only 37 offshore oil drilling equipments that have been put into use, and the main structure is jacket type, seat bottom type, and self-lifting type. The structure is simple and the function is single. From 2000 to 2004, the world built a total of 16 new jack-up platforms, 18 semi-submersible platforms and 6 drilling pontoons. In China, only four semi-submersible drilling platforms were built in the same period, and only the hull was built. Other supporting equipment is built by foreign countries.
The next 15-20 years will be a crucial period for the rapid development of China's offshore drilling market. Due to China's huge demand for petroleum resources, major domestic oil companies have developed their own deepwater drilling equipment plans. In the next five years, China National Offshore Oil Corporation will invest 120 billion yuan for offshore oil and gas exploration and development. Marine engineering equipment investment is the main part of it. More than 70 fixed and mobile production drilling platforms need to be built, including New multi-seat and semi-submersible drilling platforms. In addition, PetroChina, CNOOC and Sinopec have started research on offshore deepwater oil and gas exploration and development equipment. It plans to develop a 3,000-meter deep-water semi-submersible drilling platform with independent intellectual property rights during the 12th Five-Year Plan period. This will effectively promote the rapid development of China's offshore oil equipment.

The financial crisis helps us to play a comparative advantage
China Energy News: What impact does the worldwide financial crisis have on China's petroleum equipment manufacturing industry?
Zhao Zhiming: Since last year, the US subprime mortgage crisis has triggered an international financial crisis, which has led to a significant slowdown in world economic growth. Affected by the financial crisis, not only European and American manufacturing industries have entered historical lows, but Asian manufacturing industries including China have also been greatly affected. In the petroleum equipment industry, from the perspective of the international market, oil companies and service companies have reduced their investment as the oil price has fallen sharply. The export orders for technical equipment have been significantly reduced. Some of the projects are being executed and the projects are being put on hold. The market situation is very serious.
From the perspective of the domestic market, due to the shrinking demand of the petroleum and petrochemical market, the regulatory measures adopted by oil companies will also have certain impact on the petroleum equipment market. In the long run, the petroleum equipment manufacturing industry will be affected by two cyclical adjustments of economic adjustment and equipment renewal. These two cycles are related to each other and have their own special laws. Generally speaking, there is a certain lag in the relative economic cycle of the equipment renewal cycle. Sex. The recession is lagging behind and the recovery is relatively lagging behind.
At present, China's onshore oil production equipment market is in an excess state. From the point of view of exports, the export delivery value of the industry has grown rapidly in recent years, accounting for 20% to 30% of the product sales value, and in some areas it has exceeded 50%. Under the stagnation of the economic situation in Europe and the United States, the shrinking of the economy of oil-producing countries, and the sharp decline in market demand, the export market of China's oil drilling equipment will inevitably show a trend of large contraction. Therefore, in the case of a stable domestic market development trend, China's oil equipment is especially It is the overall development situation of the drilling and mining equipment industry that is not optimistic.

China Energy News: What do you think of the overall economic operation of China's petroleum equipment industry in the second half of 2009?
Zhao Zhiming: In the next six months or one year, major economic indicators such as total industrial output value, industrial sales value, new product output value and export delivery value will increase to a certain extent. At the same time, international oil prices have stabilized at around $60 to $70. The gradual upward trend, coupled with the country’s investment, especially the implementation of the “equipment manufacturing adjustment and revitalization plan” and the pulling effect of the construction of the second-line project of the West-East Gas Pipeline, is expected to develop well in the second half of 2009. In the first half of the year, there were signs of recovery.
We have seen that in the process of the financial crisis leading to a new round of global manufacturing integration, we can selectively undertake international industrial transfer by introducing technology, talents, and strategic mergers and acquisitions. This is also the growth of the petroleum equipment manufacturing industry. And upgrades bring historic opportunities. It should also be noted that although the financial crisis and the fall in international oil prices have led to a reduction in the market demand for petroleum equipment manufacturing, international oil companies and service companies will pay more attention to equipment cost performance, which will help us to better play a comparative advantage in the international market competition.

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