This year, our country will become the world’s largest producer of oil refining and ethylene

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According to China Economic Net, recently the Economic and Technical Research Institute of China National Petroleum Corporation released the latest annual \"Report on the Development of the Oil and Gas Industry at Home and Abroad\". The report indicates that China’s refining capacity continued to grow at a rapid pace; by the end of 2021 it had caught up with that of the United States, reaching 910 million tons per year. It is expected that this rapid growth in refining capacity will continue in 2022 as well. In 2021, China’s ethylene production capacity increased by 8.5 million tons per year, and its self-sufficiency rate in terms of ethylene equivalent rose significantly to 66.2%. It is expected that by 2022, China will become the world’s largest producer of oil refining and ethylene, but its large scale without corresponding strength, along with excess refining capacity, will hinder the effective development of China’s refining and petrochemical industry. 　　The report states that the main trend in the development of the oil and gas industry both domestically and internationally in 2021 was recovery and transformation, and this trend will continue in 2022 as well. However, the international environment has become even more complex and severe; rising instability and uncertainty have become key characteristics of the industry this year, and risk issues associated with recovery and transformation will be important concerns that the entire industry needs to address. 　　Li Ran, a senior economist at the Petroleum Market Research Institute of the China National Petroleum Corporation’s Economic and Technical Research Institute, explained that over the past year, the international oil market has shown a clear recovery, with the average price of Brent crude rising significantly to $70.95 per barrel, an increase of 64.18% ； Oil prices are expected to fluctuate at high levels in 2022, and it is not ruled out that they could exceed their historical highs in the short term. In 2021, gas prices surged in the three major global markets for natural gas: Europe, Asia, and the United States. 　In 2021, China’s apparent oil consumption experienced negative growth, a phenomenon that has been rare in recent years, with the country’s dependence on imported oil dropping to 72.2% ； It is expected that domestic oil consumption will shift from negative to positive growth in 2022, and the degree of dependence on imports will resume rising. During the same period, domestic natural gas consumption increased by 12%, raising the external dependence to 46% ； Gas consumption growth is expected to slow down in 2022. In 2021, investment in oil and gas exploration and development in China increased, with efforts focused on maintaining key projects while improving efficiency; as a result, both oil and gas reserves continued to grow. Crude oil production increased by more than 2%, reaching 199 million tons, while natural gas production exceeded 200 billion cubic meters for the first time ； It is expected that domestic oil and gas exploration and development will continue to accelerate in 2022. The **Guidelines for Energy Work in 2022** issued recently by the Energy Bureau set specific targets: crude oil production of around 200 million tons, and natural gas production of around 214 billion cubic meters. 　　“In 2021, the oil and gas industry as a whole saw a recovery, with the key performance indicators of oil companies improving significantly across the board. As countries set carbon neutrality targets and related commitments, the pace of transformation for oil companies has accelerated significantly. The focus in the upstream sector has shifted from oil to gas, while in the downstream sector it has shifted from oil to other products. Based on their own circumstances, oil companies are increasingly choosing to develop new energy businesses on a selective basis, which has become a major trend in their transformation. ”As explained by Huang Yingjia, an economist at the Petroleum Market Research Institute of the China National Petroleum Corporation’s Economic and Technical Research Institute. 　　Experts point out that this year, the uncertainty surrounding the operating environment for the oil and gas industry has increased significantly, with risk prevention becoming a key feature of the industry’s development this year. Our country will continue to introduce more supportive policies focused on ensuring supply, promoting fairness, and achieving low-carbon development. At the same time, in response to the deviations that occurred during the previous phase of development, policy directions will also be adjusted accordingly, guiding the energy sector to establish new systems first before phasing out old ones, so as to better leverage the fundamental role of fossil fuels during the transition period.