The Competitiveness Of Coal To Oil Industry

Coal is the main mineral resources in China, the reserves of coal in China’s energy and mineral resources reserves accounted for more than 95%. Coal is still the main source of energy in China. But in recent years, most parts of China, especially to the north of the lingering haze of the serious environmental problems caused by coal combustion has been the focus of attention. The purpose is to reduce consumption of coal by coal equivalent substitution into the calorific value of oil or natural gas resources. By reducing the proportion of coal consumption in order to reduce carbon dioxide emissions and reduce the air pollution caused by coal burning. Energy-saving emission reduction actions to the coal industry caused great pressure. From the beginning of 2013, coal prices fell rapidly, low prices caused by the coal industry downturn, urgent transformation.Coal to Liquid and Coal to Gas(CTL & CTG) is a process coal to product of gasoline, diesel, or natural gas, in particular conditions and containers. The based on research by CTL & CTG, coal chemical enterprises of production data, financial data and environmental data, the cost of coal to oil and gas industry, environmental impact,market conditions and industrial cluster were in-depth analysis, to explore the coal to oil and gas in the feasibility of economy, environment and society in China, and puts forward vigorously strengthen the coal to oil and gas industry.This study analyzes the total cost of CTL & CTG enterprises through a number of cases, including production costs, management costs, tax costs and financial costs.The conclusion is that when the international oil price is higher than 50 dollars per barrel, CTL & CTG will be able to achieve profitability. The full cost of coal to natural gas is about 2.32 yuan per cubic meter, in the current natural gas market prices,only a small profit.According to the theory of scale economy, only when an industry reaches a certain scale, it can reduce the cost, and it has a certain competitive power. According to Michael Porter’s theory of industrial clusters, in a specific region gathered relatedenterprises, inter enterprise sharing regional public facilities, the market environment and the external economic and reduce the exchange of information and logistics costs,the formation of regional agglomeration effect, scale effect, external effect and regional competitiveness. CTL & CTG is a kind of coal chemical industry, and coal to methanol, coal to olefins and thermal power of traditional coal chemical industry gather together, formed coal industry cluster, shared resources of coal, sharing such as highway, shared pipelines and other infrastructure, and the formation of upstream and downstream industries.The author believes that the development of CTL & CTG is an important part of China’s energy security project, so that it can ease the dependence on foreign oil market in China.Besides, the research shows that the oil and gas of coal manufactured oil is better fuel economy and emission clean than oil and conventional natural gas. It is a relatively cleaner and more efficient energy source. The development of CTL & CTG industry is an important way of ecological civilization construction. Fischer Tropsch synthesis process on the quality of the raw coal demand is low, China coal structure complex, lignite, the content of low rank coal should be give priority to the development of Fischer Tropsch synthesis technology.