Research On The Location Selection Of Foreign Direct Investment Of China's Three Major Oil Companie

Petroleum has unique strategic characteristics and plays a very important role in economic growth and social development.In recent years,with the rapid growth of the economy,China’s demand for oil has been increasing.However,due to the difficulty in matching the rapidly growing demand for oil reserves,China has had to import oil to maintain a balance between supply and demand.This has also made China the world’s largest oil importer and the most important oil consumer,and the external dependence of oil resources continues to rise.Obtaining oil resources through import trade is easily restricted by trade barriers from other countries.Therefore,foreign direct investment has become an important way for China to obtain overseas oil resources.Under the guidance of the "going global" strategy,China’s three major oil companies have taken the lead in opening up a path of outward direct investment in the international oil market.Over the past thirty years,the three major oil companies have increasingly expanded their scale of foreign direct investment and expanded their investment locations,gradually becoming the main force of China’s oil companies’ foreign direct investment.They transport a large amount of oil resources to the domestic market every year,making great contributions to filling the shortage of domestic oil supply,promoting rapid economic growth,and promoting stable social development.This article first discusses the core ideas related to location selection in the process of outward direct investment by enterprises based on location selection theory and outward direct investment theory,providing a theoretical basis for the location selection of outward direct investment by China’s three major petroleum enterprises.Secondly,this article provides a detailed analysis of the investment status of the three major oil companies,including their investment history,investment overview,investment location distribution,and their advantages.Once again,this article constructs an econometric model to empirically test the factors that affect the investment of the three major oil companies,and divides the sample into different locations.Based on the empirical results,it analyzes the impact of factors such as energy endowment,institutional distance,and technological level on the location selection of the three major oil companies’ outward direct investment,and then discusses how the three major oil companies should choose the optimal investment location.Finally,based on the cases of foreign direct investment by three major oil companies,this study investigates the impact of political and legal risks on their investment location selection,and analyzes the location selection issues of the three major oil companies.The research results found that labor participation rate,energy endowment,institutional distance,technological level,and corrected geographical distance have a significant impact on the outward direct investment of the three major oil companies.The results of regional regression show that the energy endowment and institutional distance in Asia have a significant impact;The labor participation rate,energy endowment,institutional distance,technological level,bilateral exchange rates,and economic distance in Europe have significant impacts;The labor participation rate,energy endowment,institutional distance,technological level,and environmental regulations in North America have significant impacts;The institutional distance and social development in South America have a significant impact;Africa’s technological level and bilateral exchange rates have a significant impact.In the process of location selection,the optimal investment location should be selected based on the investment purpose and the different impacts of different locations.The case analysis results show that political and legal risks in different regions have varying impacts on them.The three major oil companies can choose investment locations based on the magnitude of political and legal risks in each region.This study provides theoretical basis,data support,and case reference for the selection of the optimal investment location for China’s three major oil companies in their outward direct investment process.