China Oilfield Service Industry Report, 2010-2011 - Published by ResearchInChina

Beijing, Zhong Guo (PressExposure) July 21, 2011 -- With the rapidly growing demand of oil and gas at home in recent years, supply shortage is increasingly severe in China. Oil demand and output of China reached 455 million tons and 203 million tons respectively, with a supply and demand gap of 252 million tons and over 50% external dependency.

Although the gap between oil gas supply and demand widens, it does not indicate that the exploitation of energy resources has exhausted in domestic China. It is the exploration equipment, services and so forth that caused the lower proven rate and low recover recovery ratio of oilfields.

In terms of the oil proved rate, it is only 33.7% on average in China, less than half of the world level. Especially for offshore oil, its proved rate in China is even less than 1/3 of the world average. Regarding gas proved rate, it is also less than half of that of the world, a far cry from the proved rate of 70% in America. In respect of recovery ratio of oilfield, for instance, oil output in the eastern region of China presented a downward trend, with recovery ratio of 56% during 9th Five-Year-Plan (1996-2000) down to 28% during 11th Five- Year-Plan (2006-2010). This has put forward a higher request for oilfield service industry in China.

In order to ensure national energy security, three state-owned enterprises including CNPC, Sinopec and CNOOC are constantly increasing their exploration investment. During 2003-2008, the expenses for exploration of the three enterprises continued to grow, with an AAGR of 22.6%. In 2009, being affected by the financial crisis, the costs totaled RMB238.2 billion, a fall of 2.9% YoY. In 2010, the exploration costs of the three enterprises increased by 10.6% YoY and the exploration investment for CNPC, Sinopec and CNOOC was RMB160.89 billion, RMB52.68 billion and RMB49.77 billion, respectively.

Oil gas exploration and production exerts direct effect on market demand for oilfield service. In general, 70%-80% of the exploration investment goes to oilfield service. Therefore, the market size of oilfield service reached at least RMB184.34 billion in 2010 in China, and it is predicted to exceed RMB232.77 billion in 2011.

In China, most of the large-scale oil gas equipment manufacturers and technical service companies are subsidiaries or research institutions subordinated to CNPC, Sinopec and CNOOC, and directly provide products and services to the oilfields of theirs. What's more, some private firms provide professional services by relying upon their advantages in equipment and products and they occupy certain market shares certain market shares in their respective market segments, take example for the composite perforating service and deflagration fracturing service provided by Tong Oil Tools Co., Ltd., the cutting re-injection unit produced by Yantai Jereh Oilfield Services Group Co., Ltd., and mobile logging service delivered by Lanzhou Haimo Technologies Co., Ltd.

About ResearchInChina

Established in 1999, ResearchInChina is the vertical portal for Chinese business intelligence. Our services are used in a variety of ways, including strategic planning, research report, and as investment research. For details, please visit http://www.researchinchina.com


Press Release Source: http://PressExposure.com/PR/ResearchInChina.html

Press Release Submitted On: July 21, 2011 at 12:46 am
This article has been viewed 32580 time(s).