A Study On "Foreign Direct Investment"of Chinese Petroleum Enterprise

Petroleum is the essential strategic resources for economic development and it has political, economic and other attributes. Petroleum security is the fundamental driving force of Chinese economy.With the rapid development of economy, the demand of petroleum in China is increasing, and the dependence on foreign oil is increasing too. In the complicated international economic and political background, how to carry out the strategy of "going out" and makefull use of the global oil resources, provide protection for domestic petroleum supply and sustainable development of society and economy, is the urgent task that should be solved. The national economy of China is developin rapidly,the demand for oil has is increasing dramatically,and the dependency on foreign oil resource increasing dramatically which will increase year by year. Increasingly acerb contradiction of petroleum supply and demand is the internal driving force for Chinese petroleum enterprises to carry out foreign direct investment strategies. Construction of Chinese characteristic socialist is continuing advancing, international discourse rights is increasing gradually, and require of national security strategy is improving, and all of the condition require of Chinese petroleum enterprises to actively carry out foreign direct investment. Since reform and Opening-up, Chinese petroleum enterprises have developed rapidly, the core competition ability has increased year by year and has already carried out some foreign direct investment. But it is still at the starting stage, and it is not fit to the development of China’s economy. The rapid development of world economy and economic globalization provides the objective environment for Chinese petroleum enterprises to invest in foreign countries.As the oil industry of large country, it is the requirement of world economy for Chinese petroleum enterprises going out to participate in the international market and production. It is significant for the world economy, Chinese national economy and enterprises.The experience of practice and developing strategy to obtain global oil resources of developed countries, other developing countries which are similar to China and the major multinational oil companies, is useful for oil enterprises of China to formulate and implement the strategy and measures of "going out".For China’s petroleum enterprises, the strategy of "going out" has been carried out for more than ten years. In the process of "going out", China National Petroleum Corporation, the China Petrochemical Corp and China National Offshore Oil achieved some important experience, but they also encountered many difficulties. Therefore, it is need for China’s oil enterprises to analyze the external environment and internal environment to identify their position and development direction more clearly, which is useful to make feasible "going out" strategy and specific measures.During the process of "going out", the risks that oil enterprises face are resource risk, economic risk and political risk. These risks need us choose the countries and regions with relatively stable, relatively low cost of exploration and high degree of petroleum reserves to access to international petroleum exploration and development market and participate in the redistribution of international oil and gas resource.Chinese petroleum enterprises should actively participate in overseas oil exploration and development, and actively participate in competition of international petroleum futures market, and establish "oil finance strategic system ". In the process of "going out ", the Chinese petroleum enterprises should alliance whit foreign oil company, and the domestic petroleum enterprise must unite to participate in the competition of international petroleum resources. During the process, Chinese petroleum enterprises should pay equal attention to the upstream and downstream of petroleum industry, take combining measures of the capital and risk. On this basis, the internal system environment and a good international operation conditions and environment which are also benefit for "going out" of oil enterprises should be created, the operation and management of petroleum enterprises should be strengthened. All of these measures are useful for the sustainable development of Chinese petroleum enterprises in the overseas market.The full text is divided into seven chapters:The first chapter is introduction. In this chapter, t research background and the significance of the study is elaborated. The related research literature is reviewed. And the innovation and deficiency is pointed out. The second chapter is the introduction of foreign direct investment theories. This chapter mainly elaborates the theory basis for reason, method and measure of the enterprise foreign direct investmen. The theories of foreign direct investment can provide basis for the petroleum enterprises to implement foreign direct investment strategy, select specific investment modes, and establish specific measures.The third chapter:experience of foreign direct investment of foreign large petroleum enterprises. This chapter mainly describes the history and the status quo of petroleum enterprises of the developed countries and some developing countries. On this basis, summaries the problems and achievements during the process of foreign direct investment. And provide experience for Chinese petroleum enterprises’foreign direct investment.The fourth chapter:the development and main causes for Chinese petroleum enterprises’foreign direct investment. This chapter mainly introduces the foreign investment practice, course, achievements and problems of China National Petroleum Corporation, the Sinopec Group and CNOOC. On this basis, select two typical cases——the CNOOC bid for Unocal and Rui Thorpe to analyze the successful experience and lessons during the foreign direct investment of Chinese petroleum enterprises.The fifth chapter:the SWOT analysis for foreign direct investment of Chinese petroleum enterprises. This chapter primary analyzes the series of difficulties in the process of foreign direct investment of Chinese petroleum enterprise. On the basis of analysis about the internal and external environment, points out the advantages, disadvantages opportunities and threats, and make corresponding strategy.The sixth chapter:the selection of target areas for Chinese petroleum enterprise’ foreign direct investment. This chapter mainly studies the influence elements of foreign direct investment for petroleum enterprise in China. According to the actual situation of regional resources, political, economic and other aspects of some countries, this chapter gives quantitative analysis for their respective investment environment. On this basis, combining with the global resource distribution, considering influence elements, determine the target areas for Chinese petroleum foreign direct investment. The seventh chapter:the overall strategy and specific measures of Chinese petroleum enterprise’foreign direct investment. This chapter formulates the overall strategy and specific measures for Chinese petroleum enterprise to invest in foreign countries on the basis of the former analysis (including the experience of foreign oil companies’ multinational management, the dilemma of domestic petroleum companies’foreign direct investment).