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05 July 2019, Volume 38 Issue 3 Previous Issue    Next Issue

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Opinions on Formulation of Oil and Gas Upstream Plans under New Situation Tang Wei, Yin Delai, Feng Jinde, Wang Donghui 2019, 38(3): 1-5.  DOI: 10.3969/j.issn.1002-302x.2019.03.001 Abstract ( )   PDF (1834KB) ( )   Formulation of the 14th Five-year Plan starts from 2019. A scientific and workable development plan holds the key to the future oil and gas upstream business in the next five to 10 years. This paper summarizes the experiences in execution of four five-year plans by CNPC from the 10th Five-year Plan to 13th Five-year Plan. It points out that the upstream business plan serves as execution of the company’s general development strategy and the mindset of formulation should be in line with the company’s strategic development direction. The external macro environmental changes are the important factors influencing execution of the plan. As a result, formulation of the plan should take into account external restrictions. The confirmation degree of resources and the understanding degree of oil and gas field development potential are the key factors to influence fulfillment of the planned objectives. This paper analyzes the current situation of oil and gas upstream business, such as dramatic fluctuation of oil prices, national policies to promote oil and gas industry and the new demand for acceleration of oil and gas exploration and development, the company’s demand for high-quality development, and more and more difficult oil and gas development and production. According to the paper, the 14th Five-year Plan should include the ambitious targets, the mindset for innovative development and objective and scientific conceptions to meet the national demand and company’s need for development and secure stable upstream business development.

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Research on Stock Option Incentive Mechanism of State-owned Technological Enterprises She Weijun, Wan Hong, Chen Qi, Chen Juanli, Xie Wenjiang, Xu Fengsheng, Bao Liqing 2019, 38(3): 6-11.  DOI: 10.3969/j.issn.1002-302x.2019.03.002 Abstract ( )   PDF (2117KB) ( )   Talent incentive mechanism is one of the important links in technological structuring reform. Stock option incentive mechanism combines employees and the enterprise into a community of shared interests, effectively attracting talents and promoting business growth and and long-term development of the enterprise. China introduced stock option incentive mechanism from the 1990s and released a series of the related policies and documents. The incentive mechanism has been tested by the local governments and enterprises with continual efforts for improvements and perfection. Currently, it has become a widely-used and mature pattern for talent incentive. This paper makes briefings about the connotations and methods of stock option incentive mechanism as well as how it has been adopted both inside and outside China. It also elaborates the policies and the key points of stock option incentive mechanisms suitable for enterprises of the three different types -- state-owned technological enterprises, state-owned holding mixed ownership enterprises and state-owned holding listed enterprises. As an important and backbone stateowned enterprise, CNPC is now in its key transformation stage and qualified for stock option incentive reform in terms of the policy environment and the internal infrastructure. The affiliated scientific research institutes have urgent demands for stock option incentive mechanism. Taking advantage of the opportunity to develop towards the world’s first-class enterprise, CNPC should now accelerate research on the policies of stock option incentive and select the appropriate enterprises to pilot the incentive mechanism. They should determine the incentive targets strictly according to the requirements, formulate the appropriate requirements for examination of business performance, establish the smooth withdrawal mechanism, strictly implement the procedures for examination and approval, and reasonably solve the related bottlenecks in the efforts to further motivate the professionals for technological innovation and fuel high-quality development of enterprises.

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Perfect Legal System of China’s Foreign Oil and Gas Cooperation on Basis on “Foreign Investment Law” Chen Jiaru 2019, 38(3): 12-16.  DOI: 10.3969/j.issn.1002-302x.2019.03.003 Abstract ( )   PDF (1867KB) ( )   “Foreign Investment Law” specifies the pre-entry national treatment and the negative list for the admission of foreign investment, which provides a good legal environment for foreign investment. “Special Administrative Measures for Foreign Investment Access (Negative List) (2019 Edition) ” lifts bans on oil and natural gas exploration and development which are previously limited to joint venture and cooperative with Chinese national companies. Direct involvement of foreign investment into China’s oil and gas exploration and development will exert a far-reaching impact on the nation’s foreign oil and gas cooperation. Meanwhile, “Regulations of the People’s Republic of China on Exploitation of Onshore Petroleum Resources in Cooperation with Foreign Enterprises” and “Regulations of the People’s Republic of China on Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises” are still the dominant laws on China’s foreign oil and gas cooperation, but these two documents call for further perfection. “Foreign Investment Law” and the negative list open the upstream sector to foreign investors, meeting the demands for devoluting of administrative power. It makes clear specifications on protection of the foreign party’s intellectual properties. Under the background of competitive bidding of oil and gas mineral rights, perfection of the legal system for foreign cooperation is helpful to attract and utilize the foreign investment and increases oil and gas reserves and production to secure the nation’s energy supply.

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Innovation and Application of Technology Project Management System Yang Fang, Lei Lin, Gao Rong, Li Lei, Xie Wenjiang 2019, 38(3): 17-22.  DOI: 10.3969/j.issn.1002-302x.2019.03.004 Abstract ( )   PDF (2881KB) ( )   Technological project is the key part of an enterprise’s technological innovation activities. Effective management of technological projects is both an important assurance for success of technological research and development and an urgent demand for improvement of the existing research and development management model and optimization of mechanism and system. CNPC Tubular Goods Research Institute have accumulated experiences in technological project management in recent years and innovated and established the technological project management system. The full-project system management defines the scope of management right for project managers, clarifies examination of work performance for all staff members, stimulates the initiatives of the project teams, perfects the dynamic supervision system of technological research projects, and integrates the fullproject management system, digitalized laboratory system and the information system full cost-appraising management. It also include the measures to innovate the examination and incentive mechanism, continue the “dual-sequence” reform, consolidate examination of work performance, perfect the policies for rewarding conversion of technological results, and accelerate cultivation of talents. The practice indicates that this innovative management system, in the process of technological research projects, is able to reasonably control the project progress, effectively apply technological resources, reduce the project cost, improve the success rate of technological development, and make technological activities more adapted to market development demand. This system fully motivates technological researchers for innovation, promotes development of talents and makes the enterprise’s internal management more effective.

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Current Conditions and Development Strategy for Estimation of Technological Performance and Efficiency Gu Sui, Ren Limei, Yang Yawen 2019, 38(3): 23-28.  DOI: 10.3969/j.issn.1002-302x.2019.03.005 Abstract ( )   PDF (2048KB) ( )   Evaluation of oil and gas technological performance and efficiency is a value-identifying process of oil and gas technological innovation with respects to the achievements and influential power. Currently, technological innovation is triggering high-quality development. Therefore, evaluation of oil and gas technological performance and efficiency is an inevitable condition to promote commercialization of oil and gas technology, put in place the oil and gas technological incentive mechanism and fuel technology-driven development. This paper makes briefings about the present research conditions for evaluation of oil and gas technological performance and efficiency in three areas -- evaluation method, main body for evaluation and evaluation scope. Based on this paper, evaluation method requires integration of innovations while there is an urgency for formulation of specifications, policies laws and regulations for evaluation. Therefore, it comes up with the main strategies for acceleration of oil and gas technological performance and efficiency estimation development. They include accelerating establishment of the estimation system for oil and gas technological performance and efficiency, helping scientific research institutes improve their innovation capabilities and management of technological projects, evaluating technological value and performance, and prizing technology to serve technological trades. It is also necessary to establish and perfect the third-party technological evaluation institutions encourage oil and gas enterprises to have their own third-party estimation brands, put in place the incentive system for involvement of technological elements into revenue distribution, including the technology reward system, the job skill remuneration system and bonus for contracting technological projects.

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Study of Chinese Petroleum Enterprises’ TFP Variation Trend during the Past Decade Yang Rong, Liu Rui 2019, 38(3): 29-38.  DOI: 10.3969/j.issn.1002-302x.2019.03.006 Abstract ( )   PDF (3106KB) ( )   Energy enterprises are under a new development stage of transformation. How to depend on technological modernization and total factor productivity (TFP) to bring about high-quality and high-efficiency sustainable development is an issue of great urgency for petroleum enterprises. This article studies and analyzes the TFP cases from 30 public petroleum enterprises between 2008 and 2018. According to the results, the TFP of those petroleum enterprises was on the decline within the sampling period, dropping 1.1 percent on average. Of those enterprises,the technological efficiency increased by 0.9 percent on average, while the variation value of technological modernization fell 1.9 percent on average, affecting the TFP growth of petroleum enterprises. Six state-owned enterprises and six private-owned enterprises achieved the TFP growth in the sampling period. The majority of enterprises for high-efficiency and moderate TFP growth are state-owned ones while most of the miserably-growing enterprises are privately-owned ones. The total factor productivity of privately-owned petroleum enterprises dropped 2.2 percent on average, higher than the figures of their state-owned counterparts, because their technological modernization dropped sharply.

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Research on Cost-effective Productivity Modeling of Oilfield Liu Bin 2019, 38(3): 39-44.  DOI: 10.3969/j.issn.1002-302x.2019.03.007 Abstract ( )   PDF (2741KB) ( )   Construction of cost-effective productivity reflects the best integration of investment, production, cost and costeffectiveness. Facing the three main estimation challenges -- productivity target and cost-effectiveness target, figures of new wells and cost-effectiveness of investment, and transformation of methods and economic results of increment, cost-effective productivity becomes an important guarantee for oil and gas enterprises to bring about a sustainable business development. The basic pattern of cost-effective productivity should be based the existing development management system, take into account the investment and production indexes, and turn the technological and economic indexes of development units into the controlled targets of productivity construction, both determining investment according to cost-effectiveness and optimizing economic performance as a whole. Based on the measures for conceptions, resources, technology and policy mechanism, the targets of productivity construction are fulfilled in the new areas while cost-effective production is brought about in the old areas. With the analysis of the cases from three oilfields in the aspects of preliminary appraisal, control over investment and follow-up evaluation, this paper elaborates cost-effective productivity that leads to reform of management conceptions and business models, benefiting oil and gas enterprises in improvement of their quality and economic performance.

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Review of Annual Business Results of International Oil Majors and Forecast of Their Strategic Trends Wu Mouyuan, He Xinchun, Yin Dongqing 2019, 38(3): 45-49.  DOI: 10.3969/j.issn.1002-302x.2019.03.008 Abstract ( )   PDF (1868KB) ( )   Five international oil majors of Exxon-Mobil, BP, Shell, Chevron and Total saw a good turn for their 2018 business results. Concretely speaking, the oil and gas production have been kept rising for five consecutive years. The processing amount of crude oil and sales of oil products were kept from declining and became gradually stable, with the business revenues and net profits growing rapidly. The backbone position of upstream profit contribution was further consolidated. The capital expenditure saw a significant growth for the first time in four years. The bouncing stage of oil prices was used to handle the non-core assets. With adequate cash flow, the companies were capable of making large-scale acquisitions and buying back shares. International oil majors have obviously changed their development models in this new period. They have committed themselves to increase reserves and production cost-effectively, promoted transformation of their growth patterns with digitalization and intelligence, optimized operation for improvement of sharing, made integration of businesses for higher efficiency. It is good for the Chinese oil and gas companies to borrow those successful practices. It is proposed that the domestic companies should firmly adhere to the bottom-line of business growth, establish the assets capable of sustainable development worldwide through a multiple of channels, bring about business development on the basis of innovation, improve independent innovative capability with higher information and intelligence levels, enhance optimization of project operation, and accelerate construction of the standardization and sharing system.

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Study of Countermeasures for China-Africa Oil and Gas Cooperation under the Belt and Road Initiative Qiu Kun, Liu Xukang 2019, 38(3): 50-57.  DOI: 10.3969/j.issn.1002-302x.2019.03.009 Abstract ( )   PDF (2544KB) ( )   China became the largest crude oil and natural gas importer in the world in 2017 and 2018. China’s dependence on foreign oil and natural gas reached 70.9 percent and 45.3 percent in 2018. Oil and gas supply has become an factor affecting China’s energy security and development. Africa is rich in oil and gas resources with the relatively deregulated energy policies. As a result, the cost is low for development. It is the second largest source of China’s crude oil import and an important integral part of the Belt and Road Initiative, too. China and Africa have a broad prospect for oil and gas cooperation because of the geographical, political and economic conditions. In addition, China and Africa have a good basis for cooperation and economic complements. However, some countries on the Belt and Road itinerary also face a series of problems, such as fluctuating political situation, inadequate fund and declining production. It is proposed that the policies and mechanisms of China-Africa oil and gas cooperation should be formulated at the level of the nation and under the guidance of the Belt and Road Initiative. It is necessary to enhance risk evaluation of the investment environment, bring the joint capital advantages into full play, attach importance to extension and application of the latest appropriate technology, and further expand and deepen oil and gas cooperation with Africa.

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Analysis of Global Oil and Gas Exploration Characteristics during the Past Decade Zhao Zhe 2019, 38(3): 58-64.  DOI: 10.3969/j.issn.1002-302x.2019.03.010 Abstract ( )   PDF (2908KB) ( )   Oil and gas exploration is the basis for sustainable oil and gas industrial development. Global exploration reserves growth was closely related to the oil and gas upstream industrial development trend, international oil prices and exploration investment. A total of 5737 new oil and gas fields were cumulatively discovered all over the world between 2008 and 2018, while the newly-additional proven oil and gas reserves were accumulated to about 31.9 billion tons of oil equivalent. As for the oil and gas types, the proportion of newly added oil reserves was nearly equal to that of natural gas. The newly additional crude oil proven reserves occupied 51 percent of the total while the natural gas reserves accounted for the remaining 49 percent. As for the onshore and offshore categories, the offshore area became the key region for reserves growth. The newly-added offshore oil and gas proven reserves occupied 68 percent of the total while the onshore reserves accounted for the remaining 32 percent. As for the buried depth of reserves, the deep to ultra-deep reservoirs became the main exploration targets. The proven reserves from the deep oil and gas reservoirs (4000-6000m) occupied 54 percent of the total newly additional crude oil reserves while the natural gas reserves accounted for 40 percent. The proven reserves from the ultra-deep reservoirs (>6000m) occupied 13 percent of the total newly additional crude oil reserves while the natural gas reserves accounted for 21 percent. As for exploration operating companies, international oil companies and national oil companies have concentrated their investment on tar oil and gas fields development since the decline of oil prices. Independent oil companies and other companies have become the mainstay for exploration. It is worth studying and paying attention to the business model of the “dual exploration pattern which international oil companies have practised in the risk exploration area.