The Research Of Location Selection For Chinese Oil Enterprises’ Foreign Direct Investment

After the reform and opening-up, the economic development in China has been inan amazingly fast pace. China has quite relied on the import of oil. In this situation, it isnecessary to encourage Chinese oil enterprise to explore new oil resource abroad..At present, China has three methods to solve the problem ofoil shortage, which arereinforcing the location survey inside the country, buying oil through foreign tradedirectly and carrying out foreign direct investment. By practice, carrying out foreigndirect investment（FDI） is proved to be suitable for globaldevelopment trend and befavorable toward utilizing foreign resource, markets and technology. However,Chinese oil enterprise is confronting three major problems while investing abroad-lacking of excellent oil, high cost and high risk. As a result, launching a researchingand analyzing the investing environment of the candidate countries with a scientificand efficient way has significant meaning to Chinese oil enterprises.In this article, I reviewed some relevant researches made by experts and listedsome theories about FDI location selection to support my research. After analyzing theoil distribution in the world, I summarized some problems that Chinese oil enterpriseswere facing while investing abroad. Based on the former analysis, I designed anevaluation system to launch an empirical analysis with17indexes, separating15aimcountries into four ranks. Finally, both macro and micro suggestions for Chinese oilenterprises to select FDI locations were given to enhance their performance abroad.