Research On Location Choice And Influencing Factors Of FDI In Chinese Petroleum Enterprises

Oil is an irreplaceable resource for economic development in a country. It is called "the blood of industry ".Especially in today’s world economic integration and the political pattern of diversification,the oil resources can be referred to as one of the country’s energy security strategic resources".With the rapid development of economy in recent years, the contradiction between the supply and demand of petroleum in our country has become increasingly prominent, until the end of 2015, China from once a net exporter of oil transformation into the world’s largest importer of crude oil, petroleum investment superpower and the second largest crude oil consumer, in the international market become an important buyer power. However, the dependence of China’s oil imports up to about 60%. There are three ways to solve the problem of oil shortage:first, increase the intensity of oil exploitation; second, through trade acquisition; third, foreign direct investment. The theory and practice have proved that the direct investment in overseas market is in line with the development trend of today’s society and the situation of our country. In recent years, the FDI theory of petroleum enterprise and the practice of FDI of our country petroleum enterprise, the first consideration is the location choice. China’s three major oil companies FDI have more than ten years of development history, but in the process of overseas investment is still repeated difficulties, as is frequently billions of dollars of funds. If there is a failure of location decision, huge loss is unavoidable. With the enhancement of China’s three major oil companies of strength, the investment sector has been all over the world, mainly distributed in six plates (the Middle East, Africa, North America, Latin America, Europe and Asia, Asia Pacific). This paper conduct a comprehensive system for scientific and reasonable evaluation of the FDI location choice in China’s oil enterprises.This paper selected six major sections of the 13 countries as the research object, category five categories of factors influence the oil companies direct investment in the host country (resource endowment, economic factors, risk factors, investment cost, cultural factors) using the AHP analytic model of each factor weight of scoring and weighting, and the actual the location of FDI, China’s petroleum enterprises were evaluated from the future development situation, the world oil market face many uncertainties, discussed the choice of strategy of FDI of China’s oil enterprises location, finally from the security policy of the government and oil companies to make strategic choices to meet their own development FDI location the proposed specific measures.