【Weekly Topic】Week 4 of 2016: Share your views on the impact of falling international crude oil prices on your company! (As the New Year approaches....
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This post was last edited by Xiao Gong 1985 on 2016-1-26 at 07:59. To boost the popularity of in-depth petrochemical processing, a new 【Weekly Topic】 campaign was launched last week. Building on that previous topic, it has been decided to use “Discuss the impact of falling international crude oil prices on your company” as this week’s topic! . Given the decline in international crude oil prices, we invite everyone to share their insights based on the industries, companies, and projects that are of interest to them; feel free to express your opinions freely. We also welcome valuable suggestions regarding the topics for each subsequent week, and we will proceed based on everyone’s comments and summaries. We encourage active participation from all of you. @Guan Gongyu @Yitailong'er
Oil prices have fallen, reducing the cost of chemical raw materials; oil companies are facing financial difficulties, leading to the postponement or cancellation of projects. The mood is even worse than it was yesterday.
It’s still mainly the issue of overcapacity in the refining sector – it’s not profitable at the moment. But if one can deal in crude oil and stock up more when there are ample supplies, then refining it when prices rise a bit should yield good profits
Since 2015, crude oil prices have dropped from their peak levels, yet our company has not seen any benefits from this. How can we actually make a profit? All we can do is think daily about ways to save energy and reduce consumption, in order to lower processing costs. An article claims that an economic crisis worse than that of 2008 will occur in 2016, and CNOOC has already decided to reduce its production; it’s unclear how many smaller chemical companies will be able to survive!
The development of oil fields is decreasing, and some marginal oil fields are no longer being developed. As the industry shrinks, related construction and installation activities will surely suffer as well. Income also began to decline.
An economic downturn naturally affects each of us
The economic situation is poor, and businesses are facing difficulties.....
Companies like Coca-Cola are set to make huge profits, as sales declines will be limited or even non-existent. The two largest cost items – packaging materials and shipping fees – will both decrease significantly due to low oil prices. The tough times for the petrochemical fuel industry have just begun; currently, there is an overabundance of supply. If electric vehicles become more widespread in a few years, demand will further decline, and it’s hard to see what the future holds for this industry.
With the overall economic situation being poor, it is we at the lowest levels who are most affected. With fewer or no projects available, how can we still afford to eat?
There is a customer in the area who produces oil catalysts and has finalized plans to use hydrogen; however, due to falling oil prices, they have delayed starting operations and thus no income to earn