A Study On The International Strategy Of CNPC

As the lifeblood of modern industry, oil is an important strategic material which decide the national economy and national security. Following the rapid growth of economy, China has been the second-largest oil consumer in the world, and the contradiction between demand and supply is more and more serious. In2010, the volume of oil net import of China is up to258million ton, and the degree of import dependence is more than55.9%, which exceeds the international warning level. And it has posed a serious threat to China’s economic development and energy security. Faced this situation, some measurements such as the implementation of operating overseas, actively acquiring overseas oil and gas resources has become major strategy issues to the oil companies such as China National Petroleum Corporation (we call it’CNPC’). Therefore, the internationalization strategies of CNPC are both important to the internationalization operation of CNPC and safeguard to China’s energy security. So, it is meaningful and essential to study the internationalization strategies of CNPC.Based on theories of strategic enterprise management, the multinational company, as well as energy security, this dissertation elaborates the current situations, motives and reasons of CNPC’s internationalization operation. To constructs the system of CNPC’s internationalization strategies, this dissertation analyzes the internal conditions and external circumstances of CNPC’s internationalization operation based on the SWOT framework, and summarizes the lessons and experiences of multinational oil companies. The last, this dissertation gives the framework of CNPC’s internationalization strategies and measures. There are7chapters in this dissertation.The first chapter of this dissertation provides an introduction, expounds research purpose and its meaning to study the CNPC’s internationalization strategy under the circumstances of globalization and national energy security. Additionally, this chapter introduces the research framework, methods and basic structure of this dissertation.The second chapter overviews all related theories, including the strategic enterprise management theory, the multinational company theory.The current situations, motives and reasons of CNPC’s internationalization are elaborated in chapter3. Firstly, this chapter introduces the processes and characters of CNPC’s internationalization operation, and gets the7issues in the internationalization process of CNPC. Secondly, this chapter analyzes the importance and urgency of the energy security especially the oil security on the internal and international eye sights, and points out it is essential of the CNPC’s internationalization strategy. Finally, this chapter analyzes the motives of CNPC’s internationalization strategy, which includes the needs of promoting the operation effective and acquiring resources.The fourth chapter analyzes the internal condition and external circumstances based on the SWOT framework. This chapter studies the strength, weakness, opportunity and threat of CNPC’s internationalization operation by the SWOT methods. By the SWOT analyzing, this chapter points that CNPC must operate internationally, compete in the global market actively, and arouse the largest potentiality for the maximum profit and sustainable development. The analysis and conclusions could provide some basis and reference for the CNPC’s internationalization strategy in the respect of its understanding of its advantages, weakness, opportunities and threats.In chapter5, it introduces and analyzes the internationalization of some major oil companies as some experience reference for CNPC’s internationalization strategy. Firstly, this chapter introduces and summarizes the characters and experiences of the multinational oil companies in developed countries/areas (such as USA, EU), Asia-Pacific and the Middle East. Secondly, this chapter focuses on the internationalization development of three oil companies including Mobil Exxon,&BP analyzes their achievements and experiences of internationalization. Finally, this chapter gives some inspirations of these companies’internationalization strategy for CNPC based on the trend analysis of Chinese oil companies.Based on the previous analysis, chapter6constructs the system of CNPC’s internationalization strategy. Based on the analysis of current situation, complexity and hindrances to which CNPC is facing, this chapter offers the guiding ideology, principal objective, some policies, and components for CNPC’s internationalization strategy. Additionally, this chapter gives some advices and measurements.The last chapter summaries analysis and conclusions of this dissertation, and gives some perspectives of the further research.