Restructuring Domestic Oil And Gas Industries

Another approach that China has taken to diversifying its energy sector is embarking on a major restructuring of its state-owned oil and gas entities, beginning in 1998. The purpose of the restructuring effort was to simplify the energy system in China, making the state-owned firms more like the vertically integrated oil corporations in other countries. These state-owned oil companies, known for their massive overstaffing, are the China National Petroleum Corporation (CNPC), the China Petrochemical Corporation (Sinopec), and the China National Offshore Oil Corporation (CNOOC). Under China's oil-company restructuring program, CNPC, Sinopec, and CNOOC began shedding unprofitable ancillary businesses and instituting massive layoffs. CNPC, which had engaged mainly in oil and gas exploration and production, and Sinopec, which had been engaged in refining and distribution, were reorganized so that CNPC focused on oil activities in the north and west of China, and Sinopec in the south. In 2003 China also created a regulatory agency to oversee its energy industry, the State Energy Administration (SEA).

Was this article helpful?

0 0
Solar Panel Basics

Solar Panel Basics

Global warming is a huge problem which will significantly affect every country in the world. Many people all over the world are trying to do whatever they can to help combat the effects of global warming. One of the ways that people can fight global warming is to reduce their dependence on non-renewable energy sources like oil and petroleum based products.

Get My Free Ebook


Post a comment