An Analysis On "Going Out" Strategy By Domestic Petroleum "Three Giants"

As a kind of scarce and strategic resource, every country has now entered a more and more fierce competition for oil. Although China's petroleum reserves and exploitation are listed on the forefront all over the world, it has become one of the most rapid growing countries in petroleum consumption since 1990s; meanwhile, oil has been one of the scarce resources in China. Faced with an increasingly widening gap between domestic petroleum supply and demand, China's petroleum companies have to "go out" for more stable supplies; only in this way currently, can we meet domestic petroleum demand, maintain and insure our petroleum security, even the economic security. As the main oil and gas operators in China, state-owned petroleum "three giants" manage 80 percent oil and gas resources of our country. Hence, "three giants" deservedly shoulder the mission to acquire more oil in "going out'".This paper consists of six chapters; it analyzes certain issues of "three giants" in their "going out" for oil. First of all, it introduces the proposition of "going out". Secondly, the paper presents us the situations of "three giants" respectively with explicit wording. Thirdly, the background of "going out" is analyzed; this background includes international, domestic and industry background. This chapter also briefs the courses of "going out" by "three giants"; meanwhile, it analyzes their modes used and location selection in "going out". In Chapter Four, it gives an anatomy to the problems and handicaps faced by "three giants" in "going out", including problems brought by themselves, local economic nationalism and powerful competitors. In Chapter Five, the paper presents Patronas' experiences and measures in its international operation. Finally, the paper recommends some solutions to problems faced accordingly.The major distinguishing feature of this paper is after the detailed introduction to "three giants" respectively, it takes them as a whole, and then analyzes the problems and handicaps faced in "going out", and also it puts forward solutions accordingly.