Relatively small scale, scattered capacity and low added value

The independent refiners developed from local refineries. According to the statistics, the average annual refining capacity of the 36 major manufacturers in Shandong is 3.44 million tons. There are 10 local refineries with annual processing capacity of more than 5 million tons, and the scale is generally small except for some leading enterprises. The main devices such as decompression, catalysis and coking are small, and there are many sets of them. Although they have some flexibility, they are higher than the main refinery in the production cost of energy consumption and maintenance.

In addition to the production of gasoline and diesel oil, the other deep processing products such as olefins, alkanes and aromatics are low added value, Styrene, polypropylene, and PX have been reduced by fierce competition at home and abroad. High added value of ethylene and its downstream synthetic resin, synthetic rubber, synthetic fiber and other products still have the demand gap, but because of the need for high investment, local oil refining enterprises dabble in.

Lack of terminal, product oil face sales pressure

Due to the lack of terminal sales channels, the oil market of the independent refinery product is facing fierce competition, and the sales pressure is large, and the high profit is obtained by the terminal companies such as petrochina, sinopec and private gas stations.

With the adjustment of domestic energy consumption structure, consumption growth of refined products has slowed down. Combined with the impact of new energy vehicles such as natural gas and electric power, the supply of domestic petroleum products is becoming more and more serious. Except for several refineries, such as Dongming petrochemical and Jingbo petrochemical, which have a small amount of terminal digestion, most of the oil has to be priced well below the national retail price limit of two large companies and private end markets.

Price of refined oil sold by terminal "shearing"

Since 2015, the difference between the sale price and the national retail price of the diesel oil in Shandong province can be seen that the profit of diesel 700-1500 yuan/ton and gasoline 1500-3000 yuan/ton is obtained from the terminal retail link.

Facing the dual pressures of environmental protection and quality

The requirements of the domestic environmental protection are increasingly strict, and the quality of diesel and diesel products has been upgraded and accelerated. At present, the quality of oil products of independent refinery is uneven, so it is necessary to invest a large amount of money to upgrade the equipment, and lead to the increase of the cost. Enterprises that fail to meet quality standards or become the processing workshops of other enterprises will not escape the fate of being eliminated or acquired.

The industry discourse power is weak, affected by changes in industrial policy

The local refiners have developed from Teapot to groups with international influence, thanks to the reform and adjustment of China's oil and gas industry policy. But relative to sinopec, petrochina and other state-owned oil companies' deep involvement in industrial policy formulation, the local refiners have a weaker voice in the industry. The changes in policy tend to have a big impact on local refining enterprises.

1. Restricted by the wholesale and retail policies of refined oil products and the layout of petrol stations, the construction of the sales network of local refiner enterprises is late and the space is small and imperfect.

2. Reform of the tax policy, the consumption tax has been raised three times since November 2014, rising to 1.52 yuan/liter of gasoline, and diesel 1.2 yuan/liter, it adds a heavy burden.

3. Check the environmental, quality, tax and other aspects of local oil refining enterprises.

The scale of the development is limited

1. The notice concerning the use of imported crude oil in relation to the issue of management of the use of crude oil (in order to operate [2015] no. 253)

The new oil companies must sign a commitment to strictly implement the national oil refining industry policy, no new construction or expansion of the refinery installation shall be made without the approval of the investment department of the state council. The competent authorities shall take measures to verify the verification and accountability, and effectively eliminate the elimination and construction of illegal production capacity. Those who violate the construction of illegal construction shall be punished according to law. The new oil companies and their legal representatives shall establish a credit record in the social credit agencies recognized by the state.

2. The planning of seven chemical industrial parks

None of the existing local refiners with import qualifications are in the seven petrochemical industry bases. The expansion of existing local refiners has been blocked entirely.