A new wave of oil refining and chemical industry construction

The long-awaited plan for the revitalization of the petrochemical industry was not discussed at the executive meeting of the State Council held yesterday; it is reported that this plan will likely be formally reviewed and approved next week. 　　It was submitted to the National Development and Reform Commission before the Spring Festival. Yesterday afternoon, officials from the China Petroleum and Chemical Industry Association confirmed that the plan for reviving the petrochemical industry was submitted to the National Development and Reform Commission for approval before the Spring Festival; after the festival, it underwent several rounds of revisions and discussions, with the China Petroleum and Chemical Industry Association playing a role in those revisions. 　　According to the information currently available, the plan for revitalizing the petrochemical industry introduced this time is similar to the plans for revitalizing the steel and equipment manufacturing industries; it is primarily a general guiding framework based on policy directives, with various industrial sectors and industries offering additional revision suggestions during implementation. 　　Sun Weishan, director of the Industry Development Department at the China Petroleum and Chemical Industry Association, who was involved in drafting the plan for revitalizing the petrochemical industry, told a newspaper reporter earlier that there are roughly over 40,000 different chemical products in the petrochemical industry; some of these products generate profits while others result in losses, making the situation quite complex. However, the revitalization plan focuses on several key areas such as the refining industry, ethylene, and specialty chemicals. When the final draft of the plan is seen, it will be similar to the already released plans for the development of industries such as steel and automobiles. 　　Reducing the huge losses of domestic oil refining and chemical companies is listed as one of the key priorities in the plan, which includes proposing to raise the threshold for the oil windfall tax (commonly known as the \"profits tax\") to 60 dollars per barrel. And the current threshold is $40 per barrel. 　　According to calculations by analysts at Tianxiang Investment Consulting, if the average international crude oil price this year is around $50 per barrel, CNPC is expected to pay only about 10 billion yuan in oil windfall taxes this year. In 2008, CNPC paid 85.02 billion yuan in oil windfall taxes, which means that CNPC is expected to pay around 70 billion yuan less in such taxes this year compared to 2008. 　　According to an insider from the China Petroleum and Chemical Industry Association who participated in the discussions on the draft plan, the final version has not yet been seen, but raising the threshold for the oil windfall tax is only mentioned briefly in the draft. 　　The entity responsible for storing refined oil remains undecided. Additionally, it is still not clear whether the draft plan includes the alleged provision of 100 billion yuan in financial support for oil refining. It is certain, however, that in the areas of refining and ethylene production, the focus is on upgrading existing projects and accelerating the progress of those already under construction; major projects have all been included in the plans. 　　In line with the requirements of the 11th Five-Year Plan, 90 million tons of refining capacity will be put into operation in China by 2010. By the end of 2008 and the beginning of 2009, over 54 million tons of new crude oil processing capacity would come online in China, resulting in a significant increase in domestic production capacity. 　　Thus, the provisions regarding oil reserves have become an urgent issue. Increasing reserves can help balance market supply and demand when necessary to cope with oil price fluctuations. However, according to the information currently available, the draft plan does not specify which entities should be responsible for increasing reserves of refined oil. Yet the industry generally believes that it should be **those who fund the creation of large-scale storage facilities, separate from the commercial reserves held by various oil companies**. 　 　　In addition, the draft planning discussions include further measures to alleviate the difficulties faced by domestic oil companies, such as expanding the range of chemical products for which export tax rebates are available and increasing the scale of procurement and storage of refined oil products; priority will be given to purchasing products from key state-owned enterprises like CNPC and Sinopec in order to reduce inventory levels.

This news is truly inspiring and delightful. . . :lol

I have thanked my classmates who helped me here; I must study hard*, make progress every day, and improve my skills so that I can later switch to a refinery with higher salaries.

Good news; it seems that the prospects for those working in the oil refining industry are a bit brighter. Keep working hard to learn oil refining techniques...

Really? That’s really great; our design institute now has work to do!

May I ask which design firm is on the upper floor?

That’s great; the oil refining industry is thriving! I’m not sure if our company’s expansion project has been approved

Good news – our company’s project has found a home

Comrades, study hard* – the opportunity to demonstrate your own value has arrived