【HaiChuan Chemical Forum】With low oil prices, should petrochemical companies accelerate production or take the opportunity to upgrade their facilities?
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From April to May, international oil prices experienced a sharp drop; they have now recovered slightly. Under these circumstances, should petrochemical companies focus on increasing production, or take this opportunity to upgrade their facilities? Let’s all talk about it! ! !
The astonishing \"negative oil prices\" of today have indeed occurred, and for oil companies, the \"winter of low oil prices\" seems to be even colder than we had imagined. This also makes us more acutely aware that we must align our thinking with the overall work plan and various requirements of the group company, and ensure that these are fully implemented in every aspect of our work. The mobilization meeting for improving quality and efficiency at China National Petroleum Corporation issued a call to strive for a \"double victory\" in epidemic prevention and control as well as in the reform and development of production and operations. This battle will surely be extremely brutal. For those of us caught in this storm, there is no time to hesitate; we must recognize the overall situation, give up illusions, and take action immediately if we are to remain undefeated. Abandon illusions and fight this tough battle; we must see the favorable conditions and bright prospects. We should view the current difficulties and risk factors from a comprehensive, dialectical, and historical perspective, strengthen our confidence and boost our morale, seek advantages and avoid disadvantages, and turn crises into opportunities. It should be noted that **Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era serves as the guiding principle that helps us overcome difficulties**, and a series of measures have been introduced, bringing us new opportunities. The group’s large scale, strong resilience, and prominent political culture advantages are all favorable conditions and solid guarantees that help us overcome difficulties. We must actively seize opportunities, make full use of them, view market changes in a dialectical manner, carefully analyze our own strengths and potential, turn passivity into initiative, and break through in difficult circumstances. Abandon illusions and fight this tough battle by following the deployment requirements of the Party leadership group of the group company; by using the thematic education campaign of \"Fighting the Severe Winter, Changing Mindsets, Taking on Responsibilities, and Reaching New Heights\" as a driving force, we must steadily advance the special initiatives aimed at improving quality and efficiency, and wage a strenuous \"people’s war\". It is a battle that involves everyone; currently, the entire oil and gas industry chain is under severe pressure. There are no bystanders in this struggle, nor any outsiders – everyone must take action immediately, using their skills and efforts at their respective positions to contribute to improving quality and efficiency. Only in this way can we achieve success in everything we do ； It is necessary to carry out a coordinated effort, making full use of the advantages of integration in order to \"accelerate\" the journey of every drop of oil from underground to the market; each stage should contribute to adding value and enhancing efficiency” ； To wage a decisive battle, it is necessary to focus on the problems and weaknesses. Addressing issues such as rigid cost increases, significant losses in efficiency, prominent market shortcomings, and a lack of innovation drive requires thorough efforts and effective measures to overcome the challenges to development ； We need to engage in a protracted struggle, adapting to the normalization of low oil prices. It is necessary to identify the challenges promptly and take action, while also using a systematic approach to address chronic problems, so as to sustain strong momentum for development, keep enterprises vibrant, and achieve genuine high-quality growth.
Low oil prices mean low demand, and pushing production ahead at all costs will lead to accumulations of products from the raw material stage to the final product stage, increasing the burden on manufacturers
The astonishing \"negative oil prices\" of today have indeed occurred, and for oil companies, the \"winter of low oil prices\" seems to be even colder than we had imagined. This also makes us more acutely aware that we must align our thinking with the overall work plan and various requirements of the group company, and ensure that these are fully implemented in every aspect of our work. The mobilization meeting for improving quality and efficiency at China National Petroleum Corporation issued a call to strive for a \"double victory\" in epidemic prevention and control as well as in the reform and development of production and operations. This battle will surely be extremely brutal. For those of us caught in this storm, there is no time to hesitate; we must recognize the overall situation, give up illusions, and take action immediately if we are to remain undefeated. Abandon illusions and fight this tough battle; we must see the favorable conditions and bright prospects. We should view the current difficulties and risk factors from a comprehensive, dialectical, and historical perspective, strengthen our confidence and boost our morale, seek advantages and avoid disadvantages, and turn crises into opportunities. It should be noted that **Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era serves as the guiding principle that helps us overcome difficulties**, and a series of measures have been introduced, bringing us new opportunities. The group’s large scale, strong resilience, and prominent political culture advantages are all favorable conditions and solid guarantees that help us overcome difficulties. We must actively seize opportunities, make full use of them, view market changes in a dialectical manner, carefully analyze our own strengths and potential, turn passivity into initiative, and break through in difficult circumstances. Abandon illusions and fight this tough battle by following the deployment requirements of the Party leadership group of the group company; by using the thematic education campaign of \"Fighting the Severe Winter, Changing Mindsets, Taking on Responsibilities, and Reaching New Heights\" as a driving force, we must steadily advance the special initiatives aimed at improving quality and efficiency, and wage a strenuous \"people’s war\". It is a battle that involves everyone; currently, the entire oil and gas industry chain is under severe pressure. There are no bystanders in this struggle, nor any outsiders – everyone must take action immediately, using their skills and efforts at their respective positions to contribute to improving quality and efficiency. Only in this way can we achieve success in everything we do ； It is necessary to carry out a coordinated effort, making full use of the advantages of integration in order to \"accelerate\" the journey of every drop of oil from underground to the market; each stage should contribute to adding value and enhancing efficiency” ； To wage a decisive battle, it is necessary to focus on the problems and weaknesses. Addressing issues such as rigid cost increases, significant losses in efficiency, prominent market shortcomings, and a lack of innovation drive requires thorough efforts and effective measures to overcome the challenges to development ； We need to engage in a protracted struggle, adapting to the normalization of low oil prices. It is necessary to identify the challenges promptly and take action, while also using a systematic approach to address chronic problems, so as to sustain strong momentum for development, keep enterprises vibrant, and achieve genuine high-quality growth.
That makes a lot of sense! If the losses from production are greater, it is possible to systematically raise the industry standard and develop high-end products
It’s just an idea; everyone can share their thoughts on it
Life is not easy either. Upgrading and renovation require investment; state-owned enterprises generally have no such issues, while most private enterprises have not yet considered this. After all, a considerable portion is still in the accumulation phase
Is it related to oil prices or to domestic refining? The accumulation level is already sufficient; with low oil prices, costs are even lower, so those with the capacity to store oil are probably storing it
Storage is possible, but there isn’t that much space for storage. Just as futures oil prices turn negative, it is mainly because storage becomes impossible. Our situation is probably not much better either
It seems that some places are rushing to build oil depots