An Approach To The Concentration Of China's Petroleum Industry

Industrial concentration, in SCP (Structure-Conduct-Performance) analytical frame of traditional industrial organization theory, is one of main factors in forming market structure, and affects market performance by influencing market conduct. The level of concentration has always been the key content of industry industrial organization theory. This paper's research object is China's petroleum industry. The basic characters in market structure of China's petroleum industry are area intersected and monopolistic operation on industry level, and low concentration level and non-economy in scale on enterprise level. Meanwhile, high entry barriers hinder other competitors from participation, result in more difficulty to realize scale economy caused by high market concentration. So, it's quite necessary to re-integrate the market structure of China's petroleum industry as a whole. On this point, the study on concentration level and its influencing factors of China's petroleum industry should be of great significance. Especially, with the entry to WTO, China's petroleum industry is facing more and more intensive international competition. Thus, how to optimize industrial structure and enhance international competitiveness has already become an urgent issue.On the basis of analyzing and comparing the market structures of developed countries' petroleum industries, this paper concludes that market structure of China's petroleum industry should be oligopoly, with both scale economy and competitive energy. Then, divides China's petroleum industry into upstream and downstream, and carries out quantitative study on industrial concentration under the condition of open market. In the core part, defines indexes of factors affecting concentration and the quantitative relations between independent variable and consequence variable, by using relevant mathematic methods such as statistical yearbook analysis, correlation analysis and regression analysis. At last, figures out the real reasons causing the concentration fall in light of the regression conclusion, and puts forward countermeasures to enhance the concentration, further more, to optimize the structure of China's petroleum industry.