The only constant in the world is change.
A hundred years ago Chinese mainland the first industrial oil well was drilled in northern Shaanxi, and the first onshore refinery was built, and the petroleum industry gradually operated in accordance with the business structure of upstream oil and gas exploration and development, midstream oil refining and sales, and downstream chemicals, which has not changed in the past hundred years.
At the turn of the new century, the domestic oil and gas industry has begun a century of restructuring, accompanied by a series of top-level operations such as the listing of three barrels of oil at home and abroad, to achieve a new pattern of upstream and downstream, domestic and foreign trade, production and marketing integration. Today, the business structure has been continuously optimized, and the structure of a comprehensive international energy company has basically taken shape.
At a time when the international energy development trend and the national development pattern are sublimated, we have retrospectively reversed the three-barrel oil business structure of the three barrels of oil in 20 years. From the restructuring and listing and successive reforms of PetroChina Sinopec 20 years ago, to the ups and downs of CNOOC's listing and new energy business, until today's invariably moving towards the same circle of integrated energy architecture, the three barrels of oil have always been on the road of reform and never stopped.
01
Backtracking
"If you divide for a long time, you will be united for a long time." In 1998, when the century reorganization of the domestic petroleum industry was launched, Mr. Hou Xianglin, an academician of the chinese academy of sciences and the founder of China's oil refining technology, said so.
Elder Hou's words, from the perspective of century witnesses, expressed the top-level logic of building the historical development pulse of the national energy lifeline: advancing with the times.
After the founding of New China, the upstream plate of the petroleum industry was strongly supported by newly discovered large oilfields such as Xinjiang, Daqing and Shengli, and the middle and lower reaches were protected by large refining and chemical and petrochemical companies such as Lanlian, Lanhua and Jihua, and gradually became larger, and in 14 years, the oil was imported from 90% to achieve self-sufficiency. After the new Chinese petroleum industry stood up from the weak foundation of the old era with an annual output of 120,000 tons, although the business sector structure has been solidified for decades, the top-level design agency has experienced many changes in the General Administration of Petroleum Administration of the Ministry of Fuel Industry, the Ministry of Petroleum Industry, the Ministry of Fuel Chemical Industry, the Ministry of Petrochemical Industry, the Ministry of Petroleum Industry, the Ministry of Petroleum Industry, and the Ministry of Petroleum Industry, as well as the administrative sequence of the State Petroleum and Chemical Industry Administration, the National Energy Administration, and the company sequence of China National Petroleum Corporation (later changed to a group company), Changes in China Petroleum and Chemical Corporation (later renamed as a group company) and China National Offshore Oil Corporation.
At the intersection of the new century, in order to comprehensively push the two top enterprises of the central enterprises into the market, the state launched a century reorganization of the two major petroleum and petrochemical companies: the government functions of the Ministry of Chemical Industry, the Petroleum and Natural Gas Corporation, and the Petrochemical Corporation were merged to form the State Petroleum and Chemical Industry Bureau; the petroleum and chemical enterprises such as oil and gas fields, refining, petrochemicals, fertilizers, and chemical fibers under the Ministry of Chemical Industry and the two headquarters companies, as well as oil companies and gas stations, in accordance with the principle of combining upstream and downstream. Two extra-large petroleum and petrochemical group companies and a number of large fertilizer and chemical product companies were established.
The scale of this large-scale reorganization involves more than 850 billion yuan of assets; it involves many enterprises, from vice-ministerial-level member enterprises with strong planned economic colors to tens of thousands of branch-level member enterprises; and the radiation range is wide, from organs at all levels to county-level regional gas stations. The shock is unprecedented, not only in the history of the development of Chinese industrial enterprises, but also in the world.
In 1998, the century reorganization, China National Petroleum Corporation and China Petroleum and Chemical Corporation two major "aircraft carriers" set sail, respectively, with a complete industrial chain of oil and gas upstream, middle and downstream business sectors, began to dance with Western oil giants. This move is only the beginning of the top-level logic, and a more exciting scene is yet to come.
On May 26, 1998, PetroChina petrochemical major reorganization, two barrels of oil transfer enterprise handover ceremony.
On April 6, 2000, PetroChina shares began to be listed on the New York Stock Exchange, and on April 7, they were successfully listed on the Hong Kong Stock Exchange.
On April 7, 2000, PetroChina was listed in Hong Kong.
Subsequently, Sinopec issued H shares and A shares overseas and domestically in October 2000 and August 2001 respectively, and listed them in Hong Kong, New York, London and Shanghai respectively.
On February 27, 2001, CNOOC was listed on the New York Stock Exchange.
The continuous pace of listing at home and abroad has urged the petroleum industry to embark on the international track and benchmark international oil companies. The new three barrels of oil implement the three major strategies of resources, market and internationalization, interpret one wonderful after another, and the glimpses appear one after another, which makes the world pay attention.
20 years in the blink of an eye, today's retrospective of the ups and downs of the plot, things are not human, people are overwhelmed.
Listing at home and abroad requires a wonderful story to pave the way, and one of the wonderful stories of the oil industry is the international integration of the business sector structure.
In that year, as a deputy editor, the author co-authored the "State-owned Enterprise Shock - Record of The Restructuring and Listing of PetroChina", which completely preserved the business sector structure design process before the listing of the eldest son of the Republic.
He is the stone of the mountain and can attack jade. Restructuring and listing, especially overseas listings, is an unprecedented change in the history of PetroChina. After the establishment of the Preparatory Agency for the Restructuring and Listing of PetroChina in early 1999, senior executives frequently interacted with large international investment institutions and large companies to listen to foreign suggestions on the restructuring of PetroChina's assets and overseas financing. The foreign party introduced their model and designed 6 business segments according to industry: exploration and development - refining and sales - chemical industry - transportation - liquefied petroleum gas - natural gas transportation.
After having a foreign template, PetroChina's senior management went to the Dagang Oilfield to investigate and study the Dagang Oilfield, which was a pilot unit for establishing a modern enterprise system in the country, changed its draft reorganization plan four times, and reported to Zhongnanhai.
This restructuring plan will be named "China National Petroleum Corporation", initiated by the group company, and the subordinate professional branch will be named "China National Petroleum Corporation XXXXX Company". The management structure of listed companies adopts an international general approach, and the main part implements the management system of first-level legal person three-level management, that is, the company's headquarters (investment decision-making center), branch or division (profit center), and regional companies (cost operation, profit center). Listed companies implement the president responsibility system. The plan was approved by Zhongnanhai.
Finally, the business segment structure confirmed by the reorganization and listing is divided into five major sectors according to the core business and non-core business, namely exploration and production, refining and chemical industry, sales, pipeline transportation industry, and scientific research.
Within half a year, PetroChina Sinopec entered the global capital market under the unified guidance and approval of the state, and CNOOC made a comeback the following year and was successfully listed. Through the reorganization and listing of three barrels of oil, a modern enterprise system has been established, and a new modern oil company structure of international standards has been constructed, which is a groundbreaking transformation of the domestic oil industry.
Since then, China's petroleum industry has entered the forefront of the socialist market economy, and this business structure has continued for nearly 20 years.
02
Turning
If we say that the reorganization and listing of three barrels of oil before China's accession to the WTO is an active reform under the strategy of fully integrating into the international economic cycle, after entering the new century, the situation at home and abroad and the entire petroleum industry have undergone tremendous changes one after another, bringing new challenges and opportunities.
The sun and moon never stop. When the three barrels of oil were restructured and listed, China's oil consumption just reached 200 million tons, and after joining the WTO, oil demand soared; in 2008, 122.7 million tons were imported, and the degree of external dependence has reached the international warning line of 40%; in 2013, it became the world's largest oil consumer; since 2017, the domestic oil dependence on foreign countries has exceeded 70%, and it has to import crude oil from more than 40 countries, and hundreds of giant oil tankers sail from the Persian Gulf and other places to China's Ningbo Port, Qingdao Port, and Dalian Port every day In 2020, the apparent consumption of oil will be nearly 700 million tons, more than three times that of the three barrels of oil when it was restructured and listed.
As a result of the geometric growth of oil and gas consumption, China has become the world's second largest economic power, as well as the largest oil importer and the first automobile production and marketing country. The domestic petroleum industry is advancing with the times, and the business structure has begun to enter the process of continuous adjustment and optimization. Externally, we share global oil resources through global mergers and acquisitions; internally, we carry out the transformation of the operating system and mechanism through a series of measures such as mixed ownership reform and management autonomy reform; until today's new energy and new materials, and even the deep embedding of financial business sectors, directly reach the comprehensive energy support point.
Transmutation, always on the road.
The three barrels of oil that completed the reorganization and listing did not have time to rest, and they faced the new pattern of the world's largest oil consumer and the world's largest oil importer. The strong demand for oil and other resources has increased sharply, forcing three barrels of oil to find oil and gas resources around the world, striding to all corners of the world, and a variety of input channels at the same time. Country-level visits are also tilted towards oil and energy powers, fueling China's economic engine that is accelerating. In order to add double insurance to oil and gas resources, the China-Russia oil and gas pipeline and the China-Myanmar oil and gas pipeline also came into being.
After 10 years of restructuring and listing, in the face of China's energy security, Three Barrels of Oil has reached the peak of global mergers and acquisitions of oil and gas fields, and the scale of overseas mergers and acquisitions has soared from US$63.3 billion in 2013 to US$221 billion in 2016. After that, the scale of overseas M&A transactions has dropped significantly and become more rational.
At this time, the upstream-based overseas sector of PetroChina increased its weight in the business structure for the first time, and the international business entered the sequence of five major plate architectures. After more than 10 years of baptism, the total assets of PetroChina reached 2.23 trillion yuan, an increase of 2.4 times over 1999, sitting on the throne of the world's fourth largest oil company, and the other two barrels of oil entered the top 50.
After experiencing the low point of the post-global financial crisis in 2016, domestic crude oil production declined, refined oil consumption showed low growth at the same time, natural gas consumption production ushered in an outbreak, and local refining squeezed market share. The great changes in the external environment have prompted the three barrels of oil to accelerate the reform of the management system and the integration of professional reorganization, based on the two markets of two kinds of resources, and optimize the operation of the two business chains of oil and gas.
At the critical moment, the Central Committee's 2016 Economic Work Conference called for substantive steps in the fields of electricity, oil and natural gas. The National Development and Reform Commission also said that it will accelerate the promotion of mixed reform in important areas and key industries related to the national economy and people's livelihood and economic security, such as electricity, oil and natural gas.
In this context, Sanzhu Oil takes professional restructuring and mixed reform as the starting point, and continues to optimize the business structure established at the time of listing. PetroChina adheres to the principle of "highlighting the main business, optimizing the structure, invigorating the mechanism, and improving the efficiency", and completes 50 joint venture cooperation projects in different categories and layers to ensure that the value of state-owned assets is preserved and increased. Sinopec completed the integration and reorganization of its oilfield services and oilfield machinery assets and listed them. At the end of 2016, substantial progress was also made in the mixed reform of the oil and gas pipeline network, and Chinese Shou and SDIC Transportation became shareholders of Sichuan Gas East Pipeline Company. CNOOC, which has always been at the forefront of institutional reform in state-owned enterprises, has introduced mixed ownership in its service sector, opened its services and contracting businesses to private capital and reorganized subsidiary ownership, making CNOOC more focused on operating and managing their capital in the equity market.
At the same time, the implementation of oilfield, refining, sales and other enterprises to implement the reform of operational autonomy, the adjustment of natural gas sales and pipeline business system, and the "five-self" operation reform of equipment manufacturing enterprises are all wonderful strokes. PetroChina established the Southern Branch and the Northern Branch of Natural Gas Sales, and began to focus on the weight of clean energy in the business structure.
The restructuring and listing is the extensive comprehensive integration of the three-barrel oil system with international oil companies, and the continuous reform in the next 20 years and the continuous optimization of the business structure are the gradual transformation and innovation of the mechanism.
During this period, the three barrels of oil have their own advantages in optimizing the business structure. PetroChina, which focuses on the main oil and gas industry, strengthens the hard growth of the upstream plate and transforms and upgrades the downstream refining and chemical plate; Sinopec, which mainly attacks the downstream, lists the construction of advanced production capacity in the downstream plate as the main body, and increases the upstream oil and gas; the avant-garde CNOOC focuses on the cost reduction and efficiency of the upstream plate and creates a competitive advantage in cost and scale.
At this time, the reorganization of the three-barrel oil pipeline plate is a major highlight, the trunk pipeline is independent, and the pipeline transmission and sales are separated, laying the groundwork for the establishment of the national official website company.
On December 9, 2019, the independently operated national pipeline network company was established, which completely separated the lucrative oil and gas pipeline network from three barrels of oil, optimized the business structure of three barrels of oil, and reflected the strategic logic at the national level: a national network can realize the sharing of pipeline resources, which can avoid the waste of investment, resources and other waste caused by repeated construction, but also improve energy transportation efficiency and reduce transportation costs.
The divestiture of the national pipeline network from the three barrels of oil is the biggest change in the business structure after the reorganization and listing of the three barrels of oil, reflecting the attitude of the state's will in the petroleum industry.
03
Prospect
In 2021, due to the continuous impact of the epidemic, the global economic development has stagnated. It is a huge challenge for the world, for China, and for the three barrels of oil. The Party's Centennial Christmas, the promulgation of the 14th Five-Year Plan of the State, the launch of a new pattern of national development, as well as the development goals of "carbon peak in 2030 and carbon neutrality in 2060", the central government's three-year action plan for the reform of state-owned enterprises and the relevant deployment of deepening the reform of the oil and gas system have urged the domestic petroleum industry to brew a revolution facing the new century.
At this time, the international oil giants are taking precautions and taking advantage of the streamlining to vigorously adjust the business structure.
The BP10-year development strategy proposes to cut oil and gas production by 40% over 10 years and achieve a net-zero emissions target by 2050. Invest $5 billion a year in the low-carbon sector to focus on renewable energy, bioenergy, hydrogen and carbon capture, utilization and storage technologies, accelerating the shift to low-carbon energy solutions.
Total Energy's 10-year plan will invest $3 billion a year in renewable energy, with half of the energy production growth points coming from LNG and the other half from solar and wind.
Shell's 10-year plan is to become the world's largest power company in 10 years, focusing on clean fuels, renewable energy and electricity.
During this period, the state's adjustment of the three barrels of oil managers accelerated the in-depth optimization of the business structure of the petroleum industry.
From the organizational system to the business structure, the three barrels of oil in the general environment have begun to synchronize with the revolutionary transformation of international oil companies, and even how to enter the international capital market 20 years ago, they have learned from scratch and learned from the oil giants.
If we analyze the case of the restructuring of the business structure of PetroChina, we can see the all-round improvement of the domestic oil industry in the past 20 years.
On April 8, 2021, PetroChina held a mobilization meeting for the optimization and adjustment of the headquarters organizational system, and fully launched the optimization and adjustment of the headquarters organizational system: the original five business sectors of the business structure, exploration and production, refining and chemical industry, sales business, natural gas and pipelines, and international business, were newly adjusted to four major business sectors: oil and gas and new energy, refining and chemical sales and new materials, support and services, capital and finance.
The industry is highly concerned about: oil and gas and new energy, the international plate is merged, as the first of the four major business sectors; refining and sales merger, adding new materials; capital and finance are independent as business segments, emphasizing its importance.
Corresponding to the four major business segments, four sub-groups were established: the new energy oil and gas sub-group, the refining and sales of new materials sub-group; the support and service sub-group, including CNPC Engineering, the Planning Institute, the shared operation company, etc.; the financial capital sub-group, including financial enterprises such as CNPC Capital.
The management system structure is optimized at the same time: the headquarters is the strategic guidance and integration coordination center, the business sector is the business operation and profit center, the enterprise is the execution center and the profit sub-center, and the headquarters is refined, the excellent sector is the enterprise.
Before the restructuring of PetroChina's business structure, Sinopec and CNOOC's structures also underwent similar revolutionary adjustments. Sinopec has established four major business sectors (sub-groups) such as oil and gas and new energy, refining and sales, chemicals and materials, capital finance and support, etc., and has centralized the business units, professional companies, enterprises and institutions, and scientific research units of the group (joint-stock) company into the corresponding business segments (sub-groups) according to business attributes. CNOOC has also divided the business segment structure of its subsidiaries, forming five major business segments, including oil and gas exploration and development, professional and technical services, refining and sales, natural gas and power generation, and financial services.
It can be said that the third transmutation of three barrels of oil directly benchmarks international oil companies, and combined with the characteristics of central enterprises, from the leadership system and from different business dimensions, the domestic aircraft carrier group has been brought to the second hundred years of new starting point.
Standing at the intersection of history, looking back at the trajectory of the domestic petroleum industry business structure in the past 20 years, looking forward to the domestic oil and gas industry, PetroChina, as the largest oil and gas production supplier in China, will anchor the strategic goal of "building a world-class international energy company"; Sinopec, as the largest supplier of refined oil and petrochemical products in China, put forward the goal of "building the world's leading clean energy and chemical company"; CNOOC, as the largest offshore oil and gas production operator in China, will "build a world-class energy company with Chinese characteristics" as the goal.
It is not difficult to find the main line of the future operation of three barrels of oil: the integrated international energy company. Among them, there are three logical relationships running through: the needs of human civilization, the embodiment of the new pattern of national development, and the unshirkable obligations of the Republic's aircraft carrier enterprises.
Under the new business structure, we will enter the low-carbon energy track in an all-round way and build a comprehensive international energy company, which will be the background of the territory of the three barrels of oil in the future.
Under the main line of the operating principles of "professional development, market-oriented operation, international layout, and integrated overall planning", CNOOC, which took the lead in eating crabs in the field of new energy 15 years ago, once said that "even if it is a victim, it is necessary to explore in the direction of new energy", and began to prepare for the construction of an integrated energy supply system 10 years ago to explore various energy services such as refueling, refueling, charging, and hydrogenation. This time, CNOOC restarted its new energy business with high standards and established six major business segments, including wind power, coal-to-gas, power batteries, biomass energy, solar energy and hydrogen energy. Their goal: 50% of profits in 2050 will come from new energy sources.
In the semi-annual report disclosed by the other two barrels of oil a few days ago, it highlighted the immediate big move in the field of new energy.
PetroChina actively promotes the "double carbon" goal, continues to carry out the recovery of empty natural gas in the first half of the year, accelerates the implementation of new energy projects, explores the construction of carbon storage bases, promotes the pilot of "rooftop photovoltaics", and plans the transformation of "zero carbon" warehouse stations. In the second half of the year, the business will promote the construction of photovoltaic gas stations, charging and replacing power stations, hydrogen refueling stations, and integrated energy service stations.
Sinopec optimized the layout of the terminal network, accelerated the construction of the comprehensive refueling station of oil and gas hydrogen electric service, and completed and put into operation the first carbon-neutral gas station photovoltaic building integrated gas station. During the 14th Five-Year Plan period, 1,000 hydrogen refueling stations will be planned and built, and the number of newly developed hydrogen refueling stations is expected to reach 100 this year, and efforts will be made to build China's first hydrogen energy company.
Looking back at the 70-year development history of the new Chinese petroleum industry, especially looking back at the three transformations of the business structure in the past 20 years, we see the development trajectory: taking off the hat of poor oil, I dedicate oil for the motherland, and I dedicate clean energy to the motherland.
Always in line with the development of the country, shoulder the responsibility of the republic aircraft carrier enterprise, this is the inner structure of millions of oil people.