For the complete report, get in touch with us at : info@netscribes.com Oil and Gas sector in China is expected to witness tremendous growth owing to the robust growth of the economy of China. The report begins with a detailed overview of the global oil and gas market that includes detailed coverage of global production, consumption and reserves for both oil and gas. This section features a detailed study on the global scenario of the oil and gas production to reserve ratio. It also illustrates the regional split of oil and gas production to reserve ratio. A snapshot of the oil and gas market in China covers the demand, production and consumption levels for both oil and gas. Furthermore, a timeline description of the development of the Chinese oil industry has also been included in this section. This section also incorporates major oil and gas hubs in China. The report provides detailed information about the exports and imports of oil and gas in China. It provides country-wise import and export for the year 2010 both in terms of value and volume. Key drivers of the industry explain the factors influencing the growth of the oil and gas market in China in detail. Some of them include untapped potential, rising population and urbanization, growing automobile sector, low penetration, power generation and growth in petrochemical industry. Major challenges that could impede the development and growth of the Chinese oil and gas market include foreign dependence, reduction in CO2 emission and increase in renewable energy mandates. The government initiatives section includes a detailed description of the development of energy regulatory framework in China covering key steps taken by the government in the 12th five year plan to accelerate the growth of oil and gas market during 2010-15. This section also highlights the key tax and pricing reforms adopted by the government to boost the oil and gas market in China. Key emerging trends that are of marked importance to the oil and gas market in China include construction and expansion of LNG terminal, construction and upgrading of oil refineries, overseas investments and reliance on unconventional gas. The competition section outlays the competitive landscape of the oil and gas market in China briefing about the domestic and foreign players existing in the market. This section provides a three dimensional analysis of key players’ total income, profits and market capitalization. The report also features brief profiles of major domestic and foreign players in the market and a snapshot of their corporation, financial performance, business highlights and their product portfolio, providing an insight into the existing competitive scenario. Some of the key statistics or factors impacting the oil and gas market in China covered in the report include, global market size, global oil and gas reserves, reserve to production ratio of oil and gas, domestic market size, depth of reserves, quality of

1. Insert Cover Image using Slide Master View
Do not distort
Oil and Gas Market in China
March 2012

2. Executive Summary
 Domestic oil demand is expected to reach x mn tonnes growing with a CAGR of y% during 20‐
‐ ‐ 20‐‐
Market  Domestic gas production reached z bcm growing with a CAGR of a% during 20‐‐ ‐ 20‐‐
 Oil and Gas accounted for b% of China’s energy consumption mix in 20‐‐
Drivers:
 Untapped Potential
LE Challenges:
 Foreign Dependence
P
 Rising Population and Urbanization  Reduction in CO2 Emission
Drivers &
 Growing Automobile Sector
M
 Increase in Renewable Energy
Challenges  Low Penetration
Government S A
 Power Generation
 Growing Petrochemical Industry
 Chinese 12th Five Year Plan
Initiatives  Tax and Pricing Reforms
 Construction and Expansion of LNG Terminal
 Construction and Upgrading of Oil Refineries
Trends  Overseas Investments
 Reliance on Unconventional Gas
Major Players
Competition Company 1 Company 2 Company 3 Company 4 Company 5 Company 6
OIL AND GAS MARKET IN CHINA 2012.PPT 2

3. •Market Overview
• Global
• China
LE
MP
•Exports and Imports
•Drivers & Challenges
S A
•Government Initiatives
•Trends
•Competition
•Key Takeaway
OIL AND GAS MARKET IN CHINA 2012.PPT 3

4. Global oil consumption grew z% in 2010, registering an
increase of g mn tons from 20‐‐
Global Oil Market – Overview Global Oil Production
CAGR of y % during 20‐‐ ‐ 20‐‐
LE
• Global oil production reached x4 mn tonnes growing with a y%
z%
P
mn tonnes
• Global oil consumption reached 4,028 mn tonnes growing x1 x2 x4
x3
with a CAGR of 0.2% during 2007‐10 4,000
SAM
• Due to economic recovery post recession in 20‐‐ ‐ 20‐‐, global oil
consumption surged by z% in 20‐‐over the previous year
• Global oil reserves increased from y1 thousand mn barrels in
20‐‐ to y4 thousand mn barrels in 20‐‐
3,000
2,000
1,000
• Country 4 accounted for b4% of the global oil reserves in 20‐‐, 0
registering a decline of r% percentage points during 20‐‐ ‐20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Global Oil Reserves Global Oil Consumption
‘000 mn barrels p%
Country 1 mn tonnes
q%
1,500 z2 Country 2
b1% 5,000
z1 b2% y1 y2 y3 y4
Country 3 4,000
1,000 a2% a1% b3%
a3% Country 4 3,000
b4% Country 5 2,000
500 a4%
Country 6 1,000
b5% b6%
0 a6% a5% 0
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
OIL AND GAS MARKET IN CHINA 2012.PPT 4

5. Global gas production grew by y% in 20‐‐, increasing e bcm
from 20‐‐
Global Gas Market – Overview Global Gas Production
z% during 20‐‐ ‐ 20‐‐
LE
• Global gas production reached x4 bcm growing with a CAGR of y%
z%
P
bcm
• Global gas consumption reached y4 bcm growing with a CAGR x1 x2 x4
x3
of p% during 20‐‐ ‐ 20‐‐ 4,000
SAM
• Country 4 accounted for b4% of the global gas reserves in 20‐
‐ registering an increase of t% during 20‐‐ ‐ 20‐‐
• Global gas reserves increased from s1 tcm in 20‐‐ to s2 tcm in
20‐‐
3,000
2,000
1,000
• In 20‐‐, Place 1 and Place 2 registered d% decline in gas 0
reserves from 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Global Gas Reserves Global Gas Consumption
tcm p%
bcm
q%
1,500 z2
b1% Country 1 5,000
z1 b2% y1 y2 y3 y4
4,000
1,000 a2% a1% b3% Country 2
a3% 3,000
Country 3
500 a4% b4% 2,000
Country 4
Country 5 1,000
b5% b6%
0 a6% a5% 0
Country 6
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
OIL AND GAS MARKET IN CHINA 2012.PPT 5

6. In 20‐‐, global R/P ratio of oil and gas was x and y
respectively
Global Oil Reserves Global Oil Reserve to Production Ratio
• At the end of 2010, global R/P ratio of oil was x
LE 100 a2
a4
P
• In 20‐‐, R/P ratio of oil was the highest for Country 2
at a2 50 a5
SAM
• In 20‐‐, R/P ratio of oil was the lowest for Country 1
and Country 2 at a1 each 0
a1 a3
Country 1 Country 2 Country 3 Country 4 Country 5 Country 6
a6
Global Gas Reserves Global Gas Reserve to Production Ratio
• At the end of 20‐‐, global R/P ratio of gas was y 80 b4
b3
60 b2
• In 20‐‐, R/P ratio of gas was the highest for Country 5
40 b5
at b5
20 b1
• In 20‐‐, R/P ratio was lowest for Country 1 at b1 0
Country 1 Country 2 Country 3 Country 4 Country 5
Note: Reserves‐to‐production (R/P) ratio: If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time
(yrs.) that those remaining reserves would last if production were to continue at that rate.
Proved reserves of natural gas – Generally taken to be those quantities that geological and engineering information indicates with reasonable certainty can be
recovered in the future from known reservoirs under existing economic and operating conditions.
OIL AND GAS MARKET IN CHINA 2012.PPT 6

7. China is the world’s second largest consumer of crude oil;
oil consumption witnessed a growth of x% during 20‐‐ ‐20‐‐
Domestic Oil Market – Overview Domestic Oil Demand
growing with a CAGR of x1% during 20‐‐ ‐ 20‐‐
LE
• Domestic oil demand is expected to reach a3 mn tonnes
mn tonnes x1%
P
600 a3
• Domestic oil production reached c4 mn tonnes growing a1 a2
M
with a CAGR of x2% during 20‐‐ ‐ 20— 400
SA
• Domestic oil consumption reached b4 mn tonnes
growing with a CAGR of x3% during 20‐‐ ‐20‐‐ 200
• In 20‐‐ the R/P ratio of oil in China was t implying that if oil
production continues at the current rate the reserves would last for 0
only t years 20‐‐ 20‐‐e 20‐‐e
Domestic Oil Production Domestic Oil Consumption
x2% x3%
mn tonnes mn tonnes q%
p%
250 500 b4
c2 c3 c4 b3
200 c1 400 b1 b2
150 300
100 200
50 100
0 0
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
OIL AND GAS MARKET IN CHINA 2012.PPT 7

8. Development of oil industry in China
SAMPLE
Event 1 Event 2 Event 3
Phase I Phase II Phase III Phase IV
19‐‐ ‐19‐‐ 19‐‐ ‐19‐‐ 20‐‐ ‐ 20‐‐ 20‐‐ ‐ Present
• Point 1 • Point 2 • Point 3 • Point 4
8

9. Demand and consumption of gas in China is higher than
production leading to foreign dependence
Domestic Gas Market – Overview Domestic Gas Demand
CAGR of x1% during 20‐‐ ‐20‐‐
LE
• Domestic gas production reached a4 bcm growing with a bcm
x5%
P
150
• Domestic gas consumption reached b4 bcm growing with c2
c1
M
a CAGR of x3% during 20– ‐ 20‐‐ 100
SA
• Natural gas demand is expected to reach c2 bcm with a
CAGR of x5% during 20‐‐ ‐20‐‐ 50
• In 20‐‐ the R/P ratio for gas in China was t implying that if gas
production continues at the current rate the gas reserves would last 0
for another t years only 20‐‐ 20‐‐e
Domestic Gas Production Domestic Gas Consumption
x1%
x2% x3%
bcm bcm x4%
a4
100 120 b4
a2 a3
80 100 b3
a1 b2
80 b1
60
60
40
40
20 20
0 0
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
OIL AND GAS MARKET IN CHINA 2012.PPT 9

10. Major oil fields are concentrated in Eastern China
accounting for t1 a and t2 b oil fields
LE
Major Oil Fields in China
MP
A
• x% of total oil production in China is from a oil fields, remaining y% contributed by the b oil fields
S
• Majority of the growth in Chinese oil production is expected to be from the Chinese b oil fields
 b exploration and production activities has increased over the years particularly in the Bay 1 and the Sea 1 region
x2
x3
x1 x5
x4
x6
x7
x8
b Oil Fields
OIL AND GAS MARKET IN CHINA 2012.PPT 10

11. Three major gas basins contribute x% of the natural gas
production in China
LE
Major Gas Basins in China
MP
• Basin 1 in the south west, basin 2 and Basin3 in the north west and basin 4 in the north account for x% of the natural
SA
gas production in China
• Place 1 is the largest gas producing province in China accounting for z bcf of gas production in 20‐‐
• Place 2 is the second largest gas basin in China accounting for p% of the gas production in 20‐‐
x2
x6
x1
x3
x5
x4
b Gas
Fields
OIL AND GAS MARKET IN CHINA 2012.PPT 11

12. Country 1 is the major oil exporter to China accounting for
d1% of the total oil imports
LE
Oil Market – Exports
MP Exports Country Split – 20‐‐
SA
USD mn c4% o1%
x%
c3% c5% o2% Region 1
20,000 a4
a2 c6% o3% Region 2
a3 o4%
15,000 Region 3
a1
c2% Region 4
10,000 o5%
Region 5
5,000
c1% Others
0
Country 1 Country 3 Country 5
20‐‐ 20‐‐ 20‐‐ 20‐‐
Country 2 Country 4 Others
Oil Market – Imports Imports Country Split – 20‐‐
USD mn d5%
y% o6%
200,000 d3% d4% o7% Region 6
b2 b4 o8% Region 7
150,000 d6% o9% Region 8
d2%
b1 b3
Region 9
100,000
o10% Region 10
50,000 d1%
Others
Country 6 Country 8 Country 10
20‐‐ 20‐‐ 20‐‐ 20‐‐ Country 7 Country 9 Others
OIL AND GAS MARKET IN CHINA 2012.PPT 12

13. China is the world’s second largest importer of crude oil
importing x% of its consumption
Oil Market – Exports Exports Country Split – 20‐‐
mn tonnes x%
LE c4% o1%
P
c3% c5% o2% Region 1
20,000 a4
a2 c6% o3% Region 2
o4%
M
a3 Region 3
15,000 a1
SA
c2% Region 4
10,000 o5%
Region 5
5,000
c1% Others
0
Country 1 Country 3 Country 5
20‐‐ 20‐‐ 20‐‐ 20‐‐
Country 2 Country 4 Others
Oil Market – Imports Imports Country Split – 20‐‐
mn tonnes d5%
y% o6%
200,000 d3% d4% o7% Region 6
b2 b4 o8% Region 7
150,000 d6% o9% Region 8
d2%
b1 b3
Region 9
100,000
o10% Region 10
50,000 d1%
Others
Country 6 Country 8 Country 10
20‐‐ 20‐‐ 20‐‐ 20‐‐ Country 7 Country 9 Others
OIL AND GAS MARKET IN CHINA 2012.PPT 13

14. In terms of value, gas market in China witnessed a trade
deficit of over USD x mn in 20‐‐
LE
P
Gas Market – Exports Exports Country Split – 20‐‐
USD mn
1,500
a2
x1%
a3
A
x2%
S M a4
c3%
c4%
c5%
c6%
Country 1
Country 2
Country 3
1,000 c2%
Country 4
a1
500 c1% Country 5
Others
0
20‐‐ 20‐‐ 20‐‐ 20‐‐
Gas Market – Imports under HS Codes Imports Country Split – 20‐‐
Country 6
USD mn x3%
x4% d9% Country 7
d1%
8,000 Country 8
b4 d8%
6,000 Country 9
d7%
4,000 b1 b2 b3 Country 10
d6% d2%
Country 11
2,000
d5% Country 12
0
d4% d3% Country 13
20‐‐ 20‐‐ 20‐‐ 20‐‐
Others
OIL AND GAS MARKET IN CHINA 2012.PPT 14

15. In terms of volume, Chinese gas market witnessed a trade
deficit of y mn tons in 20‐‐
LE
P
Gas Market – Exports Exports Country Split – 20‐‐
USD mn
1,500
a2
x1%
a3
A
x2%
S M a4
c3%
c4%
c5%
c6%
Country 1
Country 2
Country 3
1,000 c2%
Country 4
a1
500 c1% Country 5
Others
0
20‐‐ 20‐‐ 20‐‐ 20‐‐
Gas Market – Imports under HS Codes Imports Country Split – 20‐‐
Country 6
USD mn x3%
x4% d9% Country 7
d1%
8,000 Country 8
b4 d8%
6,000 Country 9
d7%
4,000 b1 b2 b3 Country 10
d6% d2%
Country 11
2,000
d5% Country 12
0
d4% d3% Country 13
20‐‐ 20‐‐ 20‐‐ 20‐‐
Others
OIL AND GAS MARKET IN CHINA 2012.PPT 15

16. Drivers & Challenges – Summary
Drivers
LE
Untapped Potential
MP
Rising Population and Urbanization
S A Challenges
Foreign Dependence
Growing Automobile Sector
Reduction in CO2 Emission
Low Penetration
Increase in Renewable Energy
Power Generation
Growth in Petrochemical Industry
OIL AND GAS MARKET IN CHINA 2012.PPT 16

17. Presence of high amount of untapped oil reserves to act as
a major growth driver for the oil market in China
Untapped Potential (1/2) ‐ Oil Reserves Impact
• Finding 1
• Finding 2
LE
• Finding 3
• Finding 4
MP
SA
Depth* of Reserves Quality of Reserves Regional Distribution
Recoverable In Place
bn tons bn tons
a1 Bn tons
8 10 b1 2,000
7 c8
8
6 1,500
5 6 c9
4 1,000 c6
3 4
c7
2 a2 b2 500 c1
a3 2 c2 69.6 c3 c4 c5
a5 b3
1 a4 a6 a7 a8 b4 b5 b6 0
0 0
Region 1 Region 2 Region 3 Region 3 Region 4
<2000 2000‐5000 3500‐4500 >4500 A B C
OIL AND GAS MARKET IN CHINA 2012.PPT 17

18. High untapped recoverable gas reserves in China is a major
driver for the growing gas market in China
Untapped Potential (2/2) – Gas Reserves Impact
• Finding 1
• Finding 2
LE
• Finding 3
• Finding 4
MP
SA
Depth* of Reserves Quality of Reserves Regional Distribution
Recoverable In Place
bcm
a1 bcm bcm
8
3,000 b1 2,000
7 c8
2,500
6 1,500
5 2,000
b2 c9
4 1,500 1,000 c6
3 1,000 c7
2 a2 500 c1
a3 500 b3 c2 69.6 c3 c4 c5
a5 b4
1 a4 a6 a7 a8
0 0
0
A B Region 1 Region 2 Region 3 Region 3 Region 4
<2000 2000‐5000 3500‐4500 >4500
OIL AND GAS MARKET IN CHINA 2012.PPT 18

19. Rising population and rapid urbanization to drive the growth
of oil and gas industry in China
Rising Population and Urbanization Impact
•Finding 1
LE
P
•Finding 2
 Sub‐ Finding 1
•Finding 3
•Finding 4
SAM
Household Energy Consumption Rise in Population
Urban population Rural population
EJ mn y%
20 1,500 b1 b2 b3 b4
x% a2
15
1,000 43% 47% 52% 57%
10 a1
500
5 57% 53% 48% 43%
0 0
20‐‐ 20‐‐e 20‐‐ 20‐‐ 2‐‐‐e 20‐‐e
OIL AND GAS MARKET IN CHINA 2012.PPT 19

20. Rise in demand for automobiles acts as a major growth
driver for the oil and gas market in China
Growing Automobile Sector Sales Segmentation (20‐‐) Impact
• Finding 1
• Sub‐finding 1
LE a2%
• Finding 2
M
• Sub‐finding 2
P
SA
a1%
Passenger Vehicles Commercial Vehicles
Annual Demand – Gasoline and Diesel Automobile Production
mn tons mn units
c6
300 x% b2 30
y% c5
250 25
b1
200 20 c4
150 15 c3
c1 c2
100 10
50 5
0 0
20‐‐ 20‐‐e 20‐‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐e 20‐‐e
OIL AND GAS MARKET IN CHINA 2012.PPT 20

21. Relatively low level of oil and gas consumption is expected
to provide a huge opportunity for market growth
Low Penetration Impact
• Finding 1
• Finding 2
LE
• Finding 3
• Finding 4
MP
SA
Per Capita Oil Consumption Per Capita Natural Gas Consumption
tons cms
3.0 a1 2,500
b1
2.5 a4 2,000
2.0
a3 1,500
1.5 a2
1,000 b2 b3
1.0
a5 a6 500
0.5 b4
0.0 0
Country Country Country Country China China Country 5 Country 6 Country 7 China
1 2 3 4 20‐‐ 20‐‐e
OIL AND GAS MARKET IN CHINA 2012.PPT 21

22. Growing capacity of gas fired power plants is expected to
act as a major growth driver for the gas market in China
Thermal Power Generation Impact
• Finding 1
• Finding 2
LE
• Finding 3
• Finding 4
MP
SA
Thermal Power Capacity Gas Fired Power Plants Installation
GW
GW b2
60 y%
2,000 x% a3
50
a2
1,500
40
a1 30 b1
1,000
20
500
10
0 0
20‐‐ 20‐‐e 20‐‐e 20‐‐ 20‐‐e
OIL AND GAS MARKET IN CHINA 2012.PPT 22

23. Growth in petrochemical industry to raise the crude oil
refinery capacity to x1 mn metric tons in 20‐‐
Growth in Petrochemical Industry Impact
•Finding 1
•Finding 2
LE
•Finding 3
•Finding 4
MP
SA
Oil Product Demand
mn tons
400 x%
a2
300 a1
200
100
0
20‐‐ 20‐‐
OIL AND GAS MARKET IN CHINA 2012.PPT 23

24. Increase in foreign dependence for oil and gas supply to act
as a major challenge to the Chinese oil and gas market
Foreign Dependence Impact
•Finding 1
•Finding 2
LE
•Finding 3
•Finding 4
MP
SA
Foreign Crude Oil Dependence
%
y% a4
80
a3
60 a2
40 a1
20
0
20‐‐ 20‐‐ 20‐‐ 20‐‐
OIL AND GAS MARKET IN CHINA 2012.PPT 24

25. Reduction in carbon emission under the 12th FYP to emerge
as a major challenge to the oil and gas market in China
Reduction in CO2 Emissions Impact
•Finding 1
•Finding 2
LE
•Finding 3
•Finding 4
MP
SA
Per Capita CO2 Emission Rise in Non Fossil Fuel Usage
tons %
8 q% 15
r%
p% y%
6
10 x%
4 a2
a1 5
2
0 0
19‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐e
OIL AND GAS MARKET IN CHINA 2012.PPT 25

26. Growing emphasis on renewable energy utilization to act as
a major challenge to the oil and gas market in China
Increase in Renewable Energy Renewable Energy Share Impact
• Finding 1 %
x% ad2
• Finding 2 15
10 ad1
5
0
20‐‐ 20‐‐e
E
Renewable Energy Source Split
L
P
GW GW
z1 z2
a2
300 100% b1% c1% c2%
M
b2%
b3% c3%
20‐‐ 20‐‐e
A
250 80%
a1
S
200 A
60% B
150
40% b4% c4% C
100
D
50 a3 a4 a6 20%
a5 a7 a8
0
A B C D 0%
20‐‐ 20‐‐e
OIL AND GAS MARKET IN CHINA 2012.PPT 26

27. SAMPLE
Development of energy regulatory framework in China
• Point 1
• Point 2
Regulatory body 1
Regulatory body 2 Regulatory body 3
• Point 1
• Point 2 • Point 1
• Point 3 • Point 2
27

28. Chinese 12th five year plan has outlined several steps to
SAMPLE
develop the oil and gas industry in China
12th Five Year Plan‐ Focus on Oil and Gas Market in China
Target
• Point 1
• Point 2
Initiative 1
• Point 1
• Point 2
• Point 3
Initiatives
• Point 4
Initiative 2
• Point 1
• Point 2
• Point 3
OIL AND GAS MARKET IN CHINA 2012.PPT 28

29. Acknowledging the need for reforms, China has revised
pricing and tax policies of its oil and gas market
SA MPLE Tax and Pricing Reforms
• Key Reform 1
Key
Reforms
• Key Reform 2
Conclusion 1
OIL AND GAS MARKET IN CHINA 2012.PPT 29

30. Trends ‐ Summary
SAMPLE
Construction and Expansion of Construction and Upgrading
LNG Terminal of Oil Refineries
Trends
Reliance on
Overseas Investments
Unconventional Gas
OIL AND GAS MARKET IN CHINA 2012.PPT 30

31. Chinese oil and gas players are venturing into construction
and expansion of…
Construction and Expansion of LNG Terminal (1/2)
LE
• Finding 1
• Finding 2
MP Players invest in
LNG terminals to
A
secure unhindered
• Finding 3
S
supply of natural
gas
LNG Terminals – Current and Proposed Development Plans
Initial / Expansion
Terminal Name Status/Online Date Developer Possible Supplier
Capacity (Mncf/d)
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
OIL AND GAS MARKET IN CHINA 2012.PPT 31

32. …oil and gas terminals with a view to obtain a secure supply
of natural gas
Construction and Expansion of LNG Terminal (2/2)
LNG Terminals – Current and Proposed Development Plans
Initial / Expansion
Terminal Name Status/Online Date Developer Possible Supplier
Capacity (MMcf/d)
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT 32

33. Following a surge in demand for oil, key players are foraying
into the construction and…
Construction and Upgrading of Oil Refineries (1/2)
LE
P
• Finding 1
Players invest in oil
M
• Finding 2 refineries to
increase
A
• Finding 3 production and
S Oil Refinery Projects
earn higher profit
Company Location Capacity Planned start‐date Features
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
OIL AND GAS MARKET IN CHINA 2012.PPT 33

34. …upgrading of oil refineries to maintain a steady supply of
oil
Construction and Upgrading of Oil Refineries (2/2)
Oil Refinery Projects
Company Location Capacity Planned start‐date Features
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT 34

35. Chinese players are making overseas investments with a
SAMPLE
view to reduce foreign dependence for oil and gas
Overseas Investments (1/5)
Investment Motivations and Key Initiatives With a view to
increase
Point 1 resource base
overseas
investments are
Point 2 on the rise
Point 3
Point 4
Point 5
Point 6
Point 7
Point 8
Point 9
Point 10
OIL AND GAS MARKET IN CHINA 2012.PPT 35

36. Mergers & Acquisitions in Chinese Oil and Gas Market
Overseas Investments (2/5)
SAMPLE
Date Target Buyer/ Investor Share Size (USD bn)
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
Source: EIA
OIL AND GAS MARKET IN CHINA 2012.PPT 36

37. Heavy import dependence has led the players to shift their
focus on…
SAMPLE
Reliance on Unconventional Gas (1/2)
• Finding 1 Players are foraying
• Sub‐Findings into production and
development of
unconventional
resources to reduce
imports
Unconventional Gas
Type 1 Type 2 Type 3
Conclusion 1
OIL AND GAS MARKET IN CHINA 2012.PPT 37

38. …the development of unconventional sources to meet the
growing demand for energy
SAMPLE
Reliance on Unconventional Gas (2/2)
Shale Gas Non‐ Conventional Gas Reserves
• Finding 1 Reserves CBM Shale
• Finding 2 Total Reserve ‐ ‐
• Finding 3
Recoverable
‐ ‐
Resource
Proven Reserves ‐ ‐
Coal Bed Methane CBM Location CBM Production
• Finding 1 mncf/d mncf/d
• Finding 2 b3
60 a1 5
• Finding 3 c%
50 4
40
3
a2
30 b2
2
20 a3
b1
10 1
a4
0 0
North North South North 20‐‐ 20‐‐e 20‐‐e
west east
OIL AND GAS MARKET IN CHINA 2012.PPT 38

39. Domestic Competition – Summary (1/2)
Net Income Size of the Bubble represents Market Capitalization in USD mn
28,000
26,000
24,000
22,000 m1
SAMPLE
20,000
18,000
16,000
14,000
12,000
m2
10,000
8,000
6,000
4,000
2,000
0 m4
m3
-2,000
-4,000 Revenue
-50,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000
Company 1 Company 3
Company 2 Company 4
OIL AND GAS MARKET IN CHINA 2012.PPT 39

40. Domestic Competition – Summary (2/2)
Revenue and Profit for Major Domestic Companies
0 5,000 10,000 15,000 20,000 25,000
USD
10,890
Company 1
68
22,230
Company 2
46
106
SAMPLE
Company 3
131
104
Company 4
13
Revenue Net Income
OIL AND GAS MARKET IN CHINA 2012.PPT 40

41. Domestic Company – Company 1
Company Information
SAMPLE Locations – China
‐
Corporate Address
Tel No. xxx‐yyy‐zzz
Fax No. xxx‐yyy‐zzz
Website www.xxx.com
Year of Incorporation 20‐‐
Ticker Symbol ‐‐‐ (‐‐‐)
Stock Exchange ‐‐‐ (‐‐‐)
Products and Services
Category Products/Services Headquarters
Category 1 Product 1, Product 2 Key People
Category 2 Product 3, Product 4 Name Designation
Category 3 Product 5, Product 6, Product 7, Person 1 Vice Chairman
Product 8
Person 2 Chief Finance Officer
Person 3 Senior Vice President
Category 4 Product 9 and Product 10
Person 4 Senior Vice President
OIL AND GAS MARKET IN CHINA 2012.PPT 41

42. Domestic Company –Company 1
Financial Snapshot SAMPLE
Key Ratios
Particulars
y‐o‐y
change 2010 2009 2008 2007
Total Income Total Income Profit
(2010‐09)
USD mn USD mn
Profit / Loss a4 Profitability Ratios
300,000 a2 2,000 Operating Margin ‐ ‐ ‐ ‐ ‐
a3 1,500
200,000 a1 Net Margin ‐ ‐ ‐ ‐ ‐
1,000 Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐
100,000 Return on Equity ‐ ‐ ‐ ‐ ‐
500
Return on Capital Employed ‐ ‐ ‐ ‐ ‐
0 0
Return on Working Capital ‐ ‐ ‐ ‐ ‐
20‐‐ 20‐‐ 20‐‐ 20‐‐
Return on Assets ‐ ‐ ‐ ‐ ‐
Financial Summary Return on Fixed Assets ‐ ‐ ‐ ‐ ‐
Cost Ratios ‐ ‐ ‐ ‐ ‐
• The company incurred a net profit of USD x mn in FY 20‐‐, as Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐
compared to net profit of USD y mn in FY 20‐‐
Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐
• The company reported total Income of USD z mn in FY 20‐‐,
registering an increase of q per cent over FY 20‐‐ Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐
• The company earned an operating margin of t per cent in FY 20‐‐a Liquidity Ratios ‐ ‐ ‐ ‐ ‐
decrease of g percentage points over FY 20‐‐ Current Ratio ‐ ‐ ‐ ‐ ‐
Cash Ratio ‐ ‐ ‐ ‐ ‐
• The company reported debt to equity ratio of r in FY 20‐‐ a decrease
of u per cent over FY 20‐‐ Leverage Ratios ‐ ‐ ‐ ‐ ‐
Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐
Financial Summary Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐
Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐
Indicators Value (20/02/2012) Efficiency Ratios ‐ ‐ ‐ ‐ ‐
Market Capitalization (USD) ‐ Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐
Total Enterprise Value (USD) ‐ Asset Turnover ‐ ‐ ‐ ‐ ‐
EPS (USD) ‐
Current Asset Turnover ‐ ‐ ‐ ‐ ‐
Working Capital Turnover ‐ ‐ ‐ ‐ ‐
PE Ratio (Absolute) ‐
Capital Employed Turnover ‐ ‐ ‐ ‐ ‐
Improved Decline
OIL AND GAS MARKET IN CHINA 2012.PPT 42

43. Domestic Company –Company 1
Key Business Segments
Exploration and Production Marketing and Retailing
SAMPLE Key Geographic Segments
Refinery Chemical Industry 100%
100%
The company’s geographic
100% a1% a2% a3% a4% reportable segment is
a5 a6% a7% a8% 50% ‘Country 1’
50%
a9% a10% a11% a12% 0%
a13% a14% a15% a16% 20‐‐
0%
20‐‐ 20‐‐ 20‐‐ 20‐‐ Country1
Key Recent Developments
Description News
• Company is a petroleum and petrochemical enterprise group functioning as a state
Overview
authorized investment organization where the state holds the controlling share
• In 20‐‐ company has announced plans to increase the country1 crude oil imports from x
New business
barrels per day under a term contract
• In the first half of 20‐‐ company produced t million barrels of crude oil registering a YoY
Business highlights
rise of x %; and produced g billion cubic feet of natural gas registering a YoY rise of y %
OIL AND GAS MARKET IN CHINA 2012.PPT 43

44. Foreign Company – Company 2
Company Information
SAMPLE Locations – China
‐
Corporate Address
Tel No. xxx‐yyy‐zzz
Fax No. xxx‐yyy‐zzz
Website www.xxx.com
Year of Incorporation 19‐‐
Ticker Symbol ‐‐‐ (NYSE)
Stock Exchange New York Stock Exchange
Products and Services
Regional Office
Category Products/Services
Category 1 Product 1 Key People
Category 2 Product 2 Name Designation
Person 1 Chairman
Category 3 Product 3 Person 2 Chief Financial Officer
Person 3 Chief Administrative Officer
Person 4 Senior Vice President
Source: Company Websites; Press Articles; Databases
OIL AND GAS MARKET IN CHINA 2012.PPT 44

45. Foreign Company – Company 2
Financial Snapshot SAMPLE
Key Ratios
Particulars
y‐o‐y
change 2010 2009 2008 2007
Total Income Total Income Profit (2010‐09)
USD mn USD mn Profitability Ratios
Profit / Loss
30,000
a4 10,000 Operating Margin ‐ ‐ ‐ ‐ ‐
a2 Net Margin ‐ ‐ ‐ ‐ ‐
20,000 a3 Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐
a1 5,000
10,000 Return on Equity ‐ ‐ ‐ ‐ ‐
Return on Capital Employed ‐ ‐ ‐ ‐ ‐
0 0
20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Working Capital ‐ ‐ ‐ ‐ ‐
Financial Summary Return on Assets ‐ ‐ ‐ ‐ ‐
Return on Fixed Assets ‐ ‐ ‐ ‐ ‐
• The company incurred a net profit of USD x mn in FY 20‐‐, as Cost Ratios ‐ ‐ ‐ ‐ ‐
compared to net profit of USD y mn in FY 20‐‐ Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐
• The company reported total Income of USD z mn in FY 20‐‐, Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐
registering an increase of q per cent over FY 20‐‐
Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐
• The company earned an operating margin of t per cent in FY 20‐‐a Liquidity Ratios ‐ ‐ ‐ ‐ ‐
decrease of g percentage points over FY 20‐‐
Current Ratio ‐ ‐ ‐ ‐ ‐
• The company reported debt to equity ratio of r in FY 20‐‐ a decrease Cash Ratio ‐ ‐ ‐ ‐ ‐
of u per cent over FY 20‐‐ Leverage Ratios ‐ ‐ ‐ ‐ ‐
Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐
Financial Summary Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐
Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐
Indicators Value (21/02/2012)
Efficiency Ratios ‐ ‐ ‐ ‐ ‐
Market Capitalization (USD) ‐
Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐
Total Enterprise Value (USD) ‐ Asset Turnover ‐ ‐ ‐ ‐ ‐
EPS (USD) ‐ Current Asset Turnover ‐ ‐ ‐ ‐ ‐
PE Ratio (Absolute) ‐
Working Capital Turnover ‐ ‐ ‐ ‐ ‐
Capital Employed Turnover ‐ ‐ ‐ ‐ ‐
Improved Decline
OIL AND GAS MARKET IN CHINA 2012.PPT 45

46. Foreign Company – Company 2
Key Business Segments
Chemicals Exploration and Production
SAMPLE Key Geographic Segments
Country 1 Country 3 Country 5
Emerging Business Refining and Marketing Country 2 Country 4 Country 6
Midstream
b1% c1%
a4% a9% a14% 100% b3% c2%
100% a2% a1% a5% a10% a15% b2% b6% c4% c3%
a6% a11% a16%
a7% a12% a17% b4% c5%
50% a3% 50%
a8% a13% a18% b5% c6%
0% 0%
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Key Recent Developments
Description News
• Company is the xth largest energy company in the country 9 based on market
Overview
capitalization and proven reserves and production of oil and natural gas
• Company is investing in several emerging businesses like development of integrated
power generation, new technology projects to support exploration, production, refining
New business and marketing of oil and gas products
• Company 3 signed an agreement with the company to lease oil; and natural gas at Lowry
for USD x mn
OIL AND GAS MARKET IN CHINA 2012.PPT 46

47. Led by rising investments and infrastructure construction,
Oil and gas market in China to witness robust growth SAMPLE
Chinese energy industry has tremendous growth opportunity as the unexplored reserves of oil and gas available less
than 2000 feet is estimated to be X% and Y% respectively
Opportunities in the Government
Market Size
Market Initiatives
Huge untapped oil and gas
reserves to act as a major Oil Demand Gas Demand Measures to boost
growth driver for the oil the Oil and Gas
mn tonnes x1% bcm
and gas market in China x5% industry has been a
600 a3 150 c2
a1 a2 c1 major focus of the
400 100 12th five year plan in
Rising population and 200 50 China
urbanization coupled 0 0
with rising automobile 20‐‐ 20‐‐e 20‐‐e 20‐‐ 20‐‐e
Reforms in resource
demand and low tax by the
penetration to government
significantly contribute to benefited both the
the growth of the market buyers and
producers of the oil
Growing investments in Challenges
and gas market
gas fired power plants Pricing reforms has
along with the growing also been
• Foreign Dependence
petrochemical industry undertaken by the
to lead to rapid market • Reduction in CO2 Emission government to boost
growth • Increase in Renewable Energy the oil and gas
market
OIL AND GAS MARKET IN CHINA 2012.PPT 47

48. Thank you for the attention
The Oil and Gas Market – China report is a part of Netscribes’ Energy and Utility Industry
Series.
For more detailed information or customized research requirements please contact:
Jitendra Punjabi
Phone: +91 33 4064 6215
E‐Mail: jitendra.punjabi@netscribes.com
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OIL AND GAS MARKET IN CHINA 2012.PPT 48