Research On Privatization Reform Towards Petroleum Industry

Our petroleum industry features high monopoly by the government and the chaos of supervision, which will weaken the free market mechanism severely and make the refined oil price reformation which is a core part of the resource products price reformation difficult to continue. Meantime, social wealth is collected by state-owned enterprise supported by the power. This will enlarge the income gap drastically and lead to the loss of the public trust of government. On the one hand, private enterprises are forbidden to explore and exploit the crude oil; on the other hand, they are also deprived of the right to sell the crude oil imported from the international market freely because of the quota system. All of these have hit the enthusiasm of private enterprises heavily. However, in consideration of the grim situation, we cannot rely on import excessively and must reform the existing petroleum system to make our petroleum self-sufficient, including that we should break the monopoly and grant private enterprises the right to explore and exploit the crude oil. Privatization reform needs our thorough institutional design from the law perspective, which should include whether we can make sure that private enterprises enjoy equal rights when it comes to the entry into this market; whether there is a kind of scientific and reasonable dispute resolution mechanism for us to abide by when disputes appear; institutions about the transference of relevant mining rights; reformation to existing quota system. What is more, questions about administrative law are ubiquitous within this institutional reformation, such as the registration and administration of mining rights, initial grant of mining rights, the transference of mining rights, administrative licensing, administrative reconsideration and administrative litigation. We must establish those institutions that did not exist and harmonize the contradictory ones. Finally, privatization reform also puts forward new demands towards government'function featuring role's change from administration to services.