How can small oil companies survive in such an environment?
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Small oil processing companies no longer have much room to survive; **with the raw materials under monopoly control, everything depends on those few big corporations. Now that oil prices are rising, the benefits go to them. Price cuts have nothing to do with small businesses either; they’re all on the verge of survival. Soon, all those obstacles will be overcome; the only option is to grow stronger, advance in technology, and use it to generate profits.
I also work in a private enterprise, and there’s one thing I’m not quite sure about: is the oil you produce purchased by CNPC or Sinopec? How is the price determined? If one doesn’t have the right to sell, wouldn’t that mean being bullied?
Reply to 2# dugutianzuo5: Our raw materials come from Sinopec; they decide whether to supply them to us or not – it depends on whose connections and influence are stronger. .
Small companies also have their advantages: they are easier to maneuver, more flexible in their operations, and provide services that allow for competitive differentiation. Of course, life is tougher for them compared to monopolistic state-owned enterprises.
It’s inevitable that small businesses will eventually be eliminated; nothing can change that. Unless you have the strength to grow and become stronger, they will acquire you, and in that way you can make your way within state-owned enterprises. It’s even possible to secure some position or role if you have good relationships with the management.