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From the perspective of **’s policy orientation, small-scale oil refining is an industry that is not encouraged for development, whereas the deep processing of petrochemical products is an industry that is encouraged. As a result, small-scale oil refineries face pressure to be shut down gradually, but they also have the opportunity to develop in the field of petrochemical deep processing. It can be said that the small-scale refining industry is concerned in the short term about product upgrades, and in the long term about industrial restructuring. According to statistics from the **Bureau of Statistics, among the existing local small refineries, the processing volume is concentrated in 3 facilities in Shandong Province, 16 in Liaoning Province, 6 in Hebei Province, 5 in Jiangsu Province, 5 in Heilongjiang Province, 5 in Xinjiang, 3 in Jilin Province, 3 in Shaanxi Province, and 1 each in Henan, Hubei, Guangxi, and Ningxia. From the perspective of resource utilization, small refineries are of limited scale, lack complete processing capabilities, and it is difficult for them to meet quality standards. Some small refineries have an annual output rate of refined products of only 20%–23%, while the vast majority have a rate ranging from 20% to 70% (compared to 91%–93% for large refineries). The utilization rate of the core equipment in foreign oil refining companies is generally between 80% and 85%. In contrast, local small-scale oil refineries have inadequate equipment configurations; as a result, the load rate of their equipment does not reach high levels. The lowest load rate is 12.7%, while the highest is 76.5%, with an average load rate of 40% to 50%. This leads to high energy consumption and elevated costs. Furthermore, local small oil refining enterprises in our country have a complex capital structure, high debt levels, and low overall efficiency, making it difficult for them to cope with the fierce market competition. Under these circumstances, some small oil refineries have developed new approaches to growth: Sinopec Hangzhou Refinery is well-known in both domestic and international markets for producing white oil. The mid-to-high-end lubricant products produced by Sinopec Nanchong Refinery have excellent quality and economic benefits. The Qiqihar Refinery and the Wuxi Refinery have also made good progress in developing in the fields of petrochemicals and plastics. In some places, several enterprises form group companies and introduce a shareholding system; the transformation and expansion of the Yan’an and Yongping refineries into large-scale refineries is one such example. Some facilities process heavy oil intensively to produce heavy traffic asphalt, while the light oil fraction is used, along with new technologies, to produce high-quality petrochemical products. In areas with associated gas from oil fields or light hydrocarbons, the resources are utilized for that purpose