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Recently, the half-year 2021 performance reports of China’s three major oil companies – PetroChina, Sinopec, and CNOOC (the \"Big Three Oil Companies\") – were released. Together, they achieved a net profit of 126.37 billion yuan, equivalent to approximately 694 million yuan per day. It is worth noting that, driven by factors such as an improving economy, rising demand, and increasing prices, the chemical business segments of Sinopec and CNPC generated combined profits of 21.73 billion yuan, with daily earnings of nearly 120 million yuan. In terms of operating revenue, Sinopec had the highest figure at 1.26 trillion yuan, a 22% increase year-on-year ； China National Petroleum follows closely behind, with revenue of 1.197 trillion yuan, a year-on-year increase of 28.8% ； CNOOC’s oil and gas sales revenue reached RMB 100.63 billion, a year-on-year increase of 51.7%. In terms of net profit: PetroChina achieved a net profit of 53.04 billion yuan, compared with a loss of 29.983 billion yuan in the same period last year; its net profit saw the largest increase among the \"Big Three\" oil companies ； Sinopec achieved a net profit of 40 billion yuan, compared with a loss of 21.844 billion yuan in the same period last year ； China National Offshore Oil Corporation achieved a net profit of 33.33 billion yuan, a 221% increase year-on-year. According to calculations, the three major oil companies generated a total revenue of around 2.57 trillion yuan in the first half of 2021, achieving a net profit of 125.52 billion yuan, which translates to an average daily profit of around 694 million yuan. In the first half of 2021, the refining and chemical sectors of CNPC and Sinopec maintained stable gross profits, achieving good operational results. The chemical business segment of Sinopec maintained a strong level of profitability in the first half of the year, achieving operating revenues of 13 billion yuan. In the first half of the year, ethylene production reached 6.46 million tons, a year-on-year increase of 11.9%. The total volume of chemical products traded was 40 million tons. Meanwhile, the refining segment of Sinopec saw a strong rebound in profitability, achieving an operating income of 39.4 billion yuan in the first half of the year. In the first half of the year, 126 million tons of crude oil were processed, a 13.7% increase on a year-on-year basis, while 72.19 million tons of refined oil were produced, representing a 7.4% increase compared to the previous year. In the first half of the year, China National Petroleum’s refining and chemical business generated an operating profit of 22.19 billion yuan. Among them, the chemical industry segment achieved an operating profit of 8.73 billion yuan, an increase of 5.63 billion yuan compared to the previous year, representing a growth rate of 1.82 times ； The refining business achieved an operating profit of 13.456 billion yuan, an increase of 27.1 billion yuan compared with the same period last year. In the first half of the year, the recovery of the macroeconomy, the rise in international oil prices, and the continued growth in demand for domestic petroleum and petrochemical products were the main reasons behind the strong performance of the ‘Big Three Oil Companies’. According to Sinopec’s semi-annual report, in the first half of 2021, the world economy began to recover gradually, while the Chinese economy continued to recover steadily, with its GDP growing by 12.7% on a year-on-year basis. Domestic natural gas demand continued to grow rapidly, with apparent consumption increasing by 17.5% year-on-year. Demand for refined oil products within the country has recovered, with apparent consumption increasing by 5.7% on a year-on-year basis. Among these, gasoline and kerosene saw increases of 10.7% and 39.8% respectively, while diesel consumption declined by 3.5% year-on-year. Demand for major chemical products in the domestic market continued to grow, with ethylene equivalent consumption increasing by 1.1% on a year-on-year basis. Meanwhile, in the first half of 2021, international crude oil prices saw slight upward fluctuations; the average spot price of Brent crude oil was 65.23 dollars per barrel, up 62.8% compared to the previous year. Regarding the market conditions in the second half of the year, Sinopec is optimistic; it expects demand for refined oil products within the country to remain stable, demand for chemical products to show strong growth, and demand for natural gas to continue growing rapidly. CNPC believes that in the second half of 2021, as the global pandemic continued to evolve and new variants of COVID-19 led to some **resurgences of the epidemic, the process of world economic recovery was faced with numerous factors of instability and uncertainty. The trend of international crude oil prices is expected to be highly volatile and uncertain ； Consumption in the domestic refined oil market continues to recover, but overcapacity in refining remains a significant issue. Competition in the refined oil sector is intensifying, while demand for natural gas continues to grow at a rapid pace, leading to increased competition in that area as well.