{"id":54,"date":"2012-05-30T16:16:34","date_gmt":"2012-05-30T16:16:34","guid":{"rendered":"http:\/\/www.chinaoiltrader.com\/?p=54"},"modified":"2012-10-04T16:52:30","modified_gmt":"2012-10-04T16:52:30","slug":"shaanxi-yanchang-petroleum-the-biggest-chinese-oil-company-you-probably-never-heard-of","status":"publish","type":"post","link":"https:\/\/www.chinaoiltrader.com\/?p=54","title":{"rendered":"Shaanxi Yanchang Petroleum: The Biggest Chinese Oil Company You Probably Never Heard of"},"content":{"rendered":"

Gabe Collins, \u201cShaanxi Yanchang Petroleum: The Biggest Chinese Oil Company You Probably Never Heard of<\/span><\/a>,<\/strong>\u201d China Oil Trader\u2122, No. 2 (30 May 2012).<\/span><\/p>\n

INSIGHTFUL AND ACTIONABLE ANALYSIS OF CHINA\u2019S OIL & GAS SECTOR.<\/strong><\/span><\/p>\n

Of China\u2019s four largest oil companies, CNPC\/PetroChina, Sinopec, and CNOOC are well known. In a sample Google search, each name garnered more than 3 million search results while a Chinese-language search on Baidu had over 2 million hits for CNOOC, 3 million for CNPC, and over 9 million for Sinopec.<\/span><\/p>\n

The fourth company, Shaanxi Yanchang Petroleum (\u9655\u897f\u5ef6\u957f\u77f3\u6cb9\u6709\u9650\u8d23\u4efb\u516c\u53f8), yielded only 46,400 Google hits and 533,000 Baidu hits. \u00a0Yet it employs 97,000 workers and produces nearly 250,000 bbl of oil per day\u2014roughly 6% of China\u2019s total domestic crude oil production and more oil than Devon Energy, a leading U.S. independent producer<\/span>.<\/span><\/p>\n

Three Reasons Shaanxi Yanchang Deserves More Attention<\/strong><\/span><\/p>\n

First, <\/strong>it posted the fastest production growth of the three major Chinese onshore oil producers between 2005 and 2011\u2014a 47% increase, as opposed to 8.8% for Sinopec and only 1.5% for PetroChina (Exhibit 1<\/strong>) <\/strong><\/span><\/p>\n

Exhibit 1: Production increases for China\u2019s 4 Largest Oil Companies, 2005-2011<\/strong><\/span><\/p>\n

\u00a0\"\"<\/span><\/a><\/span><\/p>\n

Source: Company reports, National Bureau of Statistics, China Oil Trader\u2122<\/span><\/p>\n

Second<\/strong>, the company offers foreign firms a route into China\u2019s developing shale gas sector. China\u2019s Ministry of Land and Natural Resources aims to auction the rights to 20 shale gas development blocks, perhaps as soon as July 2012 (Wall Street Journal). Foreign companies cannot bid independently on acreage, but can partner with a Chinese firm. Shaanxi Yanchang\u2019s geographic position in shale-rich Shaanxi and its underappreciated oil and gas production heft make it an attractive partner for a foreign firm seeking a foothold in China\u2019s emerging shale gas plays.<\/span><\/p>\n

Third<\/strong>, the company\u2019s profile is not commensurate with its production in a large part because it is not publicly traded, whereas the three largest domestic oil producers are. For reference, in 2011, CNPC\/PetroChina produced 53% of the country\u2019s domestic crude oil output, Sinopec nearly 21%, CNOOC just under 15%, and Shaanxi Yanchang just over 6% (Exhibit 2<\/strong>). China\u2019s total daily domestic crude oil output in 2011 was 4.06 million barrels per day, making it the world\u2019s 5th<\/sup> largest oil producer.<\/span><\/p>\n

Exhibit 2: China \u201cBig Four\u201d Oil Company Domestic Oil Production<\/strong><\/span><\/p>\n

% of total domestic oil production<\/strong><\/span><\/p>\n

\"\"<\/span><\/a><\/span><\/p>\n

\u00a0Source: Company reports, China Oil Trader\u2122<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Gabe Collins, \u201cShaanxi Yanchang Petroleum: The Biggest Chinese Oil Company You Probably Never Heard of,\u201d China Oil Trader\u2122, No. 2 (30 May 2012). INSIGHTFUL AND ACTIONABLE ANALYSIS OF CHINA\u2019S OIL & GAS SECTOR. Of China\u2019s four largest oil companies, CNPC\/PetroChina, Sinopec, and CNOOC are well known. In a sample Google search, each name garnered more […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[17],"class_list":["post-54","post","type-post","status-publish","format-standard","hentry","category-upstream-2","tag-upstream"],"_links":{"self":[{"href":"https:\/\/www.chinaoiltrader.com\/index.php?rest_route=\/wp\/v2\/posts\/54","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chinaoiltrader.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chinaoiltrader.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chinaoiltrader.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chinaoiltrader.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54"}],"version-history":[{"count":0,"href":"https:\/\/www.chinaoiltrader.com\/index.php?rest_route=\/wp\/v2\/posts\/54\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.chinaoiltrader.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chinaoiltrader.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chinaoiltrader.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}