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10 February 2021, Volume 39 Issue 6 Previous Issue    Next Issue

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2020, 39(6): 0.  Abstract ( )   PDF (598KB) ( )

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Rethinking and Suggestions of China’s Petroleum Security in Post-Covid-19 Era Liu He, Xu Peng, Liang Yingbo 2020, 39(6): 1-6.  DOI: 10.3969/j.issn.1002-302x.2020.06.001 Abstract ( )   PDF (2095KB) ( )   Covid-19 was raging worldwide in 2020. The OPEC+ production reduction agreement collapsed in March of the year. Those events seriously affected the global oil economy, leading to a substantial reduction of oil consumption and a serious surplus in oil supply. International oil companies dramatically reduced their investment cost. In the post-Covid-19 era, the United States, Russia, Saudi Arabia and even many other countries may join forces, further increasing the risks for the oil prices to fluctuate in a wide spectrum. China is facing a sterner challenge for its petroleum security. It is proposed to draw attention to the changing situation of global energy game and establish the rigid oil-saving mechanism at home. The efforts should be made for bringing about two “200 million tons” for domestic crude oil productivity and reserves. Meanwhile, it is necessary to establish “East Asia +” consumption alliance abroad to create an interest community of the new era and secure China’s energy supply through the efforts both at home and abroad.

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China’s Option for Oil and Gas Development Path in 14th Five-year Plan Period Zhang Guosheng, Wang Xiaolin, Zhu Shijia 2020, 39(6): 7-12.  DOI: 10.3969/j.issn.1002-302x.2020.06.002 Abstract ( )   PDF (1882KB) ( )   China’s oil and gas industry has experienced four major strategic transformations since the 1950s, significantly promoting the country’s oil and gas industrial development and turning China into one of the main oil and gas producers from an oil-insufficient country. China has also established five major oil and gas cooperative regions overseas. Oil and gas holds the key to China’s energy security but it is also remaining as the weak link in the country’s energy supply. China’s dependence on oil and gas imports has dramatically climbed since the 21st century, substantially increasing the risks for oil and gas security. It is of great urgency to step up China’s domestic oil and gas exploration and development and highlight the key role of the domestic oil and gas supply. This paper systematically analyzes the transformation process of China’s oil and gas development strategy. According to the author, the realistic option for China to secure its oil and gas supplies is to carry out the “keeping oil production stable while increasing gas outputs” strategy under the new situation. It is proposed that “keeping oil production stable while increasing gas outputs” should be regarded as the national strategy during the 14th Five-Year Plan period. The paper also comes up with China’s future oil and gas development strategy in order to keep China’s oil production at 2×108t on a long-term basis and promote sustainable growth of natural gas production. In addition, it puts forth the suggestions and measures on sea and land use, technological innovation, structuring mechanism and taxation policies.

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Thoughts on China’s Oil and Gas “Double-Circulation” Development Pattern Tang Wei, Feng Jinde, Ding Lin 2020, 39(6): 13-17.  DOI: 10.3969/j.issn.1002-302x.2020.06.003 Abstract ( )   PDF (1917KB) ( )   The global spread of Covid-19 has caused a significant impact on the world political and economic situation. The rise of trade protectionism and intensification of geopolitical conflicts seriously slowed down the globalization process. They also affected China’s economic and social development, highlighting the risks for instabilities and uncertainties and sounding the alarm for China’s oil and gas supplies which are dependent mainly on the imports. This article analyzes the new situation facing China’s oil and gas industrial development and proposes the new development countermeasure of establishing China’s oil and gas “double-circulation” pattern. On the one hand, this development countermeasure helps establish the internal circulation, consolidate the objective for keeping the domestic oil production stable while producing more natural gas, increase the oil and gas stockpiles and emergency response capacity, and open up the new oil and gas areas. On the other hand, it is also helpful to establish the external circulation, affirm the conception of deregulation, enhance “the Belt and Road” oil and gas cooperation and make an active plan for the Chinese-US games. It is necessary to step up international cooperation, make internal and external interaction, and secure China’s oil and gas supplies by taking a series of measures.

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Global LNG Trade Characteristics and Development Trend Li Yang, Guan Chunxiao, Ge Su 2020, 39(6): 18-26.  DOI: 10.3969/j.issn.1002-302x.2020.06.004 Abstract ( )   PDF (2375KB) ( )   Global LNG trade has been rising in recent years. The year of 2019 saw the highest growth rate of LNG trade volume since 2010. The annual growth rate is 13 percent. Meanwhile, global LNG sets a record high for newly-additional liquefied productivity, newly-additional investment and spot prices. Global LNG trade volume is estimated to reach 4950×108m3 in 2020, up 2 percent from the previous year. Thanks to a higher uncertainty of global economic recovery and natural gas demand-supply, LNG trade is changing in the areas of supply capacity, contract clauses and prizing mechanism. Generally speaking, global LNG supply is adequate before 2030, with a momentum for trade growth. The shares of the medium- and short-term contracts and spot trade are continually on the rise. More and more new contracts will choose the diversified and gas-to-gas index pricing methods. The supplier and consumer usually take part in market competitions by means of a portfolio to reduce the risks for higher profits. A higher flowability of global LNG market will promote formation of a unified global natural gas market. This paper puts forth three suggestions on China’s LNG trade policies. First of all, China should take advantage of the long-term abundant window stage of global LNG market supply and demand to increase gas import sources and enhance the guarantee capacity for natural gas supplies. Secondly, China should use the time for diversification of LNG pricing methods to promote establishment of the joint bargaining mechanism for a louder voice in natural gas prizing. Thirdly, China should establish and perfect the legal system for unified management and supervision of natural gas imports and reasonably distribute the resources to safeguard a healthy and stable development of China’s natural gas market.

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Discuss Application of Five Main Information Technologies in Oil and Gas Industrial Digital Transformation Cao Gang, Yang Qinghai, Ren Yili, Zhao Ruidong 2020, 39(6): 27-36.  DOI: 10.3969/j.issn.1002-302x.2020.06.005 Abstract ( )   PDF (4066KB) ( )   Against the new situation, digital transformation has become the key solution for the oil and gas industry to improve its cost-effectiveness. The new generation of information technology, such as Internet of Things (IOT), cloud computing, big data, artificial intelligence (AI) and block chain, are the key driving forces for digital transformation. The five main information technologies have played an important role in oil and gas industrial digital transformation. IOT is the material basis for inter-connection of oil and gas data. Big data expand the potential space of the oil and gas data value. Cloud computing solves the bottlenecks for management of oil and gas data in the area of resources. AI makes a substantial improvement of oil and gas production management system. Block chain provides technical support for safety and sharing of oil and gas data resources.However, application of the five main information technologies also faces a series of challenges, such as unable to unify the standards of IOT construction, relatively high cost for cloud computing construction, unable to bring big data and AI technology into full play, block chain to be perfected, incompatibility between business process and management mechanism, and inadequate storing of IT talents. Therefore, this paper comes up with the related policies, such as focusing on the industrial pain points, displaying advantages of new technologies, promoting reform of management mechanism, and establishing the digital industrial environment. The oil and gas industry should make technological, managerial and economic evaluations on the industrial demands and pain points and formulate the top-level design and execution plans for digital transformation.

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Suggestions on Assessment and Development of China’s Proven but Undeveloped Natural Gas Reserves Tang Hongjun, Huang Jinliang, Pan Songqi, Tang Qi, Wang Yali 2020, 39(6): 37-44.  DOI: 10.3969/j.issn.1002-302x.2020.06.006 Abstract ( )   PDF (2363KB) ( )   China’s proven but undeveloped natural gas reserves account for 36 percent of the country’s total proven reserves for gas fields. Accelerating development of the undeveloped reserves can further increase and maintain China’s natural gas production. Based on analysis of the distribution, characteristics and non-producing reasons of China’s proven but undeveloped natural gas reserves, this paper elaborates the method, standards and process for classification and assessment of the proven but undeveloped reserves, thus, bringing such reserves under classification and assessment. China’s proven but undeveloped natural gas reserves are mainly from the low-permeability to super low-permeability and carbonate heterogeneous gas reservoirs and concentrated in Sichuan, Ordos and Tarim basins. Of the undeveloped reserves, those that can be produced in the near future account for 27.4 percent, while the reserves difficult to be produced occupy 58.4 percent and the reserves to be written off amount to 14.2 percent. China has a large amount of the reserves difficult to be produced, which cannot be produced under the current structuring mechanisms and the current technological, economic and policy conditions. Therefore, from the angles of the oil and gas companies’ restructuring mechanism, managerial and technological innovation, and the State policies, this paper comes up with the suggestions on the concrete measures and policies for accelerating development of China’s difficult-to-produce reserves.

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New Method for Conventional Hydrocarbon Exploration Stage Division and Its Application Li Jianzhong, Liang Kun, Wu Na, Ma Wei, She Yuanqi, Yang Shen 2020, 39(6): 45-53.  DOI: 10.3969/j.issn.1002-302x.2020.06.007 Abstract ( )   PDF (2587KB) ( )   An objective understanding of hydrocarbon exploration stage and resources potential is the basis for the State to formulate the industrial policies and the companies to compile the medium- and long-term development plans. According to this paper the current industrial method for identifying the exploration stage based on the proven rate of resources is unable to reflect the existing conditions of hydrocarbon exploration. It comes up with the new standards for division of exploration stages including five indicators based on the proven rate of resources, reserve growth trend, variations in target layers of exploration, variations in reservoir types, and variations in reserve grade and scale. As compared to the results from traditional assessment, the hydrocarbon exploration degree is obviously improved in China’s main onshore basins. Oil exploration is generally in the middle and later stages. Songliao Basin and Bohai Bay Basin are in their late periods for onshore oil exploration. The offshore area of Bohai Sea, Ordos Basin, Junggar Basin and Tarim Basin are in their middle stages of oil exploration. Natural gas exploration degree remains low with a great potential for exploration. Sichuan Basin, Ordos Basin and Tarim Basin enter their middle stages of natural gas exploration with the potential for a stable and substantial increase of reserves.

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Discuss Oil and Gas Cooperation Strategy of BRICS Nations in Post Covid-19 Era Su Jian, Zhao Zhe, Zhou Peng 2020, 39(6): 54-61.  DOI: 10.3969/j.issn.1002-302x.2020.06.008 Abstract ( )   PDF (2384KB) ( )   BRICS nations have accelerated their energy cooperation, particularly oil and gas cooperation, in recent years, significantly promoting development of bilateral and multilateral relations. The global outbreak of Covid-19 in 2020 reduced energy consumption worldwide. With the effect of low oil prices, the energy industrial development faced the new situation in which the international energy relations and multilateral cooperation became more complicated with the uncertain factors continually accumulated. In the post-Covid-19 era, BRICS nations should make more efforts for high-quality international energy cooperation, helping bring about global economic resumption and maintaining the energy globalization process and the multilateral regulation system. It is proposed that BRICS nations should actively create “a community with a shared future for energy” in their oil and gas cooperation strategies, strengthen energy cooperation in the potential areas, establish emergency communications mechanisms, energy forum and consultation mechanisms, enhance monetary and financial cooperation, and accelerate energy industrial AI development.

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Analysis of Reasons for US Chesapeake Energy Corporation’s Bankruptcy and Restructuring Li Zhixin, Wang Kun, Liu Jingyao 2020, 39(6): 62-67.  DOI: 10.3969/j.issn.1002-302x.2020.06.009 Abstract ( )   PDF (2381KB) ( )   Against the background of the world’s low oil and gas demand and prices, Chesapeake Energy Corporation, the second largest natural gas producer in the United States, applied for bankruptcy and restructuring on June 28, 2020. The bankruptcy exposed a series of problems existing in US shale oil producers, such as high cost, high liability, shortage of cash flow, declining technological dividends, and limitation of financing-producing business model. This paper elaborates on the current conditions of Chesapeake Energy Corporation’s production business, studies its development process and analyzes its bankruptcy and restructuring reasons. It also points out that the Chinese oil and gas enterprises can draw lessons from Chesapeake in three areas. First of all, the upstream enterprise should not operate under the condition of high liability because the oil and gas assets are highly influenced by price fluctuations. Secondly, it is necessary to guard against ambitious purchase of low-quality oil and gas assets under high oil prices and make asset portfolios reasonable under low oil prices to keep an adequate cash flow. Thirdly, cost-effectiveness holds the key to the high-cost shale oil and gas development and production.

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Analysis of Daqing Oilfield Company’s Transformation Wang Gang, Sun Guoxin, Jin Yajie, Zhao Bo, Wang Lisha, Wang Qi 2020, 39(6): 68-73.  DOI: 10.3969/j.issn.1002-302x.2020.06.010 Abstract ( )   PDF (2456KB) ( )   As an enterprise engaged in resources exploration and development, Daqing Oilfield Co Ltd inevitably faces the issue of resource depletion. Therefore, transformation and upgrading is the inevitable way for Daqing to keep its high-quality and sustainable development. This paper analyzes the transformation orientations and paths of international oil companies and clarifies Daqing’s transformation orientation on the basis of the company’s current conditions and environmental analysis. First of all, the measures include pumping shale oil to keep oil production stable, opening up the market by means of development technology, and developing new energy business. Then, the industrial chain should be extended to increase the added value and develop the new industries. The paper also comes up with the two transformation paths -- diversification of elements and extension of the industrial chain. It discusses the route of the strategic development plan for Daqing Oilfield Co Ltd’s transformation and upgrading, which can be used as references for China energy companies’ transformation and upgrading.

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Development Trend of Petroleum Engineering Industry and Countermeasures of Oilfield Service Companies under New Situation Wang Minsheng, Yao Yunfei, Yan Na 2020, 39(6): 74-81.  DOI: 10.3969/j.issn.1002-302x.2020.06.011 Abstract ( )   PDF (2589KB) ( )   The world economy fell into recession in 2020 owing to the outbreak of the Covid-19, leading to a decline in energy demand, particularly a substantial decrease in oil and gas demand. The surplus in crude oil supplies accelerated the plunge of oil price, thus making the world oil and gas industry face a huge challenge. It is estimated that the oil and gas supplies are adequate on a long- and medium-term basis. The oil price is difficult to be bounced to the high level. Against this new situation, the oilfield service companies should take control over the risks, focus more efforts on cost management and control, and pay attention to improvement of the long-term core competitiveness. The concrete countermeasures include adjusting the business development plan to change development methods and management priorities, optimizing the market distribution to concentrate on the key areas, aiming at digital offshore business to focus on the key value points, and taking advantage of energy technological development to make an active involvement in the areas other than oil and gas.