Research On Low Cost Strategy Of CNOOC Huizhou Refinery Project

Oil is important resource and strategic material.It is very important to economy and safety of one nation.China is a country with peer oil,but also a country with high oil consumption.Oil strategy is directly concerned to a nation's safety and wealth.Economic globalization has been the inevitable tendency of the world economic development.This provided development opportunity,at the same time this brought serious challenges.The sharp fall of world oil price provide profit margin.But the world financial crisis caused the world economy recession and low oil demand.Furthermore, at the same time,China is extending the capacity of oil refinery.The unbalance of oil demand and supply may be improved and buyer market is expected to form.As a result, this means the warmer competition in the oil refinery industry.Facing the current world and domestic environment,the manager of China oil and petrochemical company must overcome the traditional economic abstraction;adjust operation strategy,takes effective measures to reduce the cost from all the supply links to improve the competitive ability.CNOOC Huizhou Refinery is both the first refinery branch of the CNOOC and the first refinery plant which refine high-acid content crude oil in the world.By studying the world and domestic economic environment and comparing with the situation of world oil refinery industry,the paper analysis the present operation situation of China oil refinery industry.Using associated economic or principle on management and with the aid of analysis tools of SWOT,the paper researches the need and methods of low cost strategy for CNOOC Huizhou Refinery Company.The operation of the CNOOC Huizhou Refinery is the milestone of CNOOC beginning to develop its refinery products and plays a vital role for the development of the CNOOC.By analyzing the low-cost method,the paper has put some valuable advice which can benefit both CNOOC Huizhou Refinery's first phrase operation and its second phrase operation.