The Efficiency Study On Oil And Natural Gas In The Main Areas Of China

The oil and natural gas in relation to us, is the modern industrial development power and vitals, and both have the important influence in a country comprehensive national strength, security and the people’s life. With the sustained and rapid economic development, the energy consumption is also increasing. For a long time, China’s oil industry has been in the national high degree of monopoly, and the planned economic system has been broken after reforms in the1980s and1990s gradually. But the oil market is affected by the intervention of the national policy, and has not achieved market-oriented. This is not only confined to the international competitiveness of China’s petrochemical enterprises, but also hinders the efficiency of the industry. Now China has entered the second year of the12th Five-Year Plan, the shortage of oil resources has become an important factor restricting China’s economic development. In backdrop of the energy saving, we can go sustainable development strategy, enhance industrial competitiveness, and realized of China’s petrochemical industry to grow stronger. To improve energy productivity will not only help solve the issues related to energy saving and emission reduction in China’s energy production process, guarantees our full and rational use of resources, reduces dependence on foreign oil, and protects the safety of China’s oil resources, so it’s necessary for China to complete the oil and natural gas production efficiency analysis.This paper attempts to study the productive efficiency based on Malmquist index in the "field of oil and gas production, because we can discuss the relations of decision making units and avoid the mistake in the time to explore the lack of data depth information. The results show that the total factor productivity of China’s oil and natural gas as a whole is low and productive isn’t efficiency with a downward trend. Under the assumption of the same scale, it can be found that further decomposition of the Malmquist index into technical change and technical efficiency change, technical efficiency of the contribution of TFP growth is very low, less than technology regress causing mainly change of the total factor productivity. From geographical area, the technical efficiency of eastern region and western region is more than the middle and technological progress of the southern region is significantly higher than the north. At last, B-convergence model shows that technical efficiency of China’s oil and gas among the main producing areas is different, but the technology efficiency isn’t of convergence.This paper focuses on two aspects, technological progress and technical efficiency, puts forward several measures about the quality of the labor force, policy guidance, and business innovation level in China which should be taken immediately to improve TFP.Although we can verify that oil and natural gas in main producing areas are lack of efficiency and technology is the main reason of change of the total factor efficiency, due to the complex situation of the main producing areas, we can’t know what causes the technical regress of various producing areas, and the paper did not carry out a detailed discussion. At the end of the empirical analysis, the different methods calculating efficiency may cause difference in the β-convergence test results.