Market Research Report :Oil and Gas Market in China 2012
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Oil and Gas Market in China
March 2012
2
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Executive Summary
Market
Drivers & Challenges
Competition
Domestic oil demand is expected to reach x mn tonnes growing with a CAGR of y% during 20‐‐ ‐ 20‐‐Domestic gas production reached z bcm growing with a CAGR of a% during 20‐‐ ‐ 20‐‐Oil and Gas accounted for b% of China’s energy consumption mix in 20‐‐
Major Players
Company 1 Company 2 Company 3 Company 4 Company 5 Company 6
Government Initiatives
Chinese 12th Five Year PlanTax and Pricing Reforms
Drivers: Untapped Potential
Rising Population and Urbanization
Growing Automobile Sector
Low Penetration
Power Generation
Growing Petrochemical Industry
Challenges: Foreign Dependence
Reduction in CO2 Emission
Increase in Renewable Energy
Construction and Expansion of LNG TerminalConstruction and Upgrading of Oil RefineriesOverseas InvestmentsReliance on Unconventional Gas
Trends
3
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
•Market Overview• Global
• China
•Exports and Imports
•Drivers & Challenges
•Government Initiatives
•Trends
•Competition
•Key Takeaway
4
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Global oil consumption grew z% in 2010, registering an increase of g mn tons from 20‐‐
• Global oil production reached x4 mn tonnes growing with a CAGR of y % during 20‐‐ ‐ 20‐‐
• Global oil consumption reached 4,028 mn tonnes growing with a CAGR of 0.2% during 2007‐10
• Due to economic recovery post recession in 20‐‐ ‐ 20‐‐, global oil consumption surged by z% in 20‐‐over the previous year
• Global oil reserves increased from y1 thousand mn barrels in 20‐‐ to y4 thousand mn barrels in 20‐‐
• Country 4 accounted for b4% of the global oil reserves in 20‐‐, registering a decline of r% percentage points during 20‐‐ ‐20‐‐
Global Oil Market – Overview Global Oil Production
Global Oil Consumption
0
1,000
2,000
3,000
4,000
z%
y%
20‐‐
x4
20‐‐
x3
20‐‐
x2
20‐‐
x1mn tonnes
0
1,000
2,000
3,000
4,000
5,000
mn tonnes q%
p%
20‐‐
y4
20‐‐
y3
20‐‐
y2
20‐‐
y1
Global Oil Reserves
0
500
1,000
1,500
a3% a2% a1%
‘000 mn barrels
20‐‐
z2
b6%b5%
b4%
b3%b2%
b1%
20‐‐
z1
a6% a5%
a4%Country 6
Country 5
Country 4
Country 3
Country 2
Country 1
5
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Global gas production grew by y% in 20‐‐, increasing e bcmfrom 20‐‐
• Global gas production reached x4 bcm growing with a CAGR of z% during 20‐‐ ‐ 20‐‐
• Global gas consumption reached y4 bcm growing with a CAGR of p% during 20‐‐ ‐ 20‐‐
• Country 4 accounted for b4% of the global gas reserves in 20‐‐ registering an increase of t% during 20‐‐ ‐ 20‐‐
• Global gas reserves increased from s1 tcm in 20‐‐ to s2 tcm in 20‐‐
• In 20‐‐, Place 1 and Place 2 registered d% decline in gas reserves from 20‐‐
Global Gas Market – Overview Global Gas Production
Global Gas ConsumptionGlobal Gas Reserves
0
1,000
2,000
3,000
4,000
bcmz%
y%
20‐‐
x4
20‐‐
x3
20‐‐
x2
20‐‐
x1
0
1,000
2,000
3,000
4,000
5,000
20‐‐
y4
20‐‐
y3
20‐‐
y2
20‐‐
y1
bcm q%
p%
0
500
1,000
1,500
tcm
20‐‐
z2
b6%b5%
b4%
b3%b2%
b1%
20‐‐
z1
a6% a5%
a4%
a3% a2% a1%
Country 6
Country 5
Country 4
Country 3
Country 2
Country 1
6
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
In 20‐‐, global R/P ratio of oil and gas was x and y respectively
•At the end of 2010, global R/P ratio of oil was x
• In 20‐‐, R/P ratio of oil was the highest for Country 2
at a2
• In 20‐‐, R/P ratio of oil was the lowest for Country 1
and Country 2 at a1 each
Global Oil Reserves Global Oil Reserve to Production Ratio
Global Gas Reserve to Production RatioGlobal Gas Reserves
• At the end of 20‐‐, global R/P ratio of gas was y
• In 20‐‐, R/P ratio of gas was the highest for Country 5
at b5
• In 20‐‐, R/P ratio was lowest for Country 1 at b1
0
50
100
Country 3
a3
Country 2
a2
Country 1
a1
Country 6
a6
Country 5
a5
Country 4
a4
0
20
40
60
80
Country 5
b5
Country 4
b4
Country 3
b3
Country 2
b2
Country 1
b1
Note: Reserves‐to‐production (R/P) ratio: If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time (yrs.) that those remaining reserves would last if production were to continue at that rate.
Proved reserves of natural gas – Generally taken to be those quantities that geological and engineering information indicates with reasonable certainty can be recovered in the future from known reservoirs under existing economic and operating conditions.
7
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
China is the world’s second largest consumer of crude oil; oil consumption witnessed a growth of x% during 20‐‐ ‐20‐‐
•Domestic oil demand is expected to reach a3 mn tonnes growing with a CAGR of x1% during 20‐‐ ‐ 20‐‐
•Domestic oil production reached c4 mn tonnes growing with a CAGR of x2% during 20‐‐ ‐ 20—
•Domestic oil consumption reached b4 mn tonnes growing with a CAGR of x3% during 20‐‐ ‐20‐‐
• In 20‐‐ the R/P ratio of oil in China was t implying that if oil production continues at the current rate the reserves would last for only t years
Domestic Oil Market – Overview Domestic Oil Demand
Domestic Oil Consumption
0
200
400
600
mn tonnes x1%
20‐‐e
a3
20‐‐e
a2
20‐‐
a1
Domestic Oil Production
0
100
200
300
400
500
q%x3%
20‐‐
b4
20‐‐
b3
20‐‐
b2
20‐‐
b1
mn tonnes
0
50
100
150
200
250
mn tonnes
20‐‐
c3
20‐‐20‐‐
p%
c2
20‐‐
c1
x2%
c4
8
SAMPLE Development of oil industry in China
Phase I19‐‐ ‐19‐‐
Phase IV20‐‐ ‐ Present
• Point 1
Phase II19‐‐ ‐19‐‐
• Point 2
Phase III20‐‐ ‐ 20‐‐
• Point 3 • Point 4
Event 1 Event 2 Event 3
9
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Demand and consumption of gas in China is higher than production leading to foreign dependence
•Domestic gas production reached a4 bcm growing with a CAGR of x1% during 20‐‐ ‐20‐‐
•Domestic gas consumption reached b4 bcm growing with a CAGR of x3% during 20– ‐ 20‐‐
•Natural gas demand is expected to reach c2 bcm with a CAGR of x5% during 20‐‐ ‐20‐‐• In 20‐‐ the R/P ratio for gas in China was t implying that if gas production continues at the current rate the gas reserves would last for another t years only
Domestic Gas Market – Overview Domestic Gas Demand
Domestic Gas ConsumptionDomestic Gas Production
0
20
40
60
80
100
bcmx2%
x1%
20‐‐
a4
20‐‐
a3
20‐‐
a2
20‐‐
a1
0
20
40
60
80
100
120
20‐‐
b4
20‐‐
b3
20‐‐
b2
20‐‐
b1
bcm x4%x3%
0
50
100
150
bcmx5%
20‐‐e
c2
20‐‐
c1
10
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Major oil fields are concentrated in Eastern China accounting for t1 a and t2 b oil fields
Major Oil Fields in China
• x% of total oil production in China is from a oil fields, remaining y% contributed by the b oil fields
•Majority of the growth in Chinese oil production is expected to be from the Chinese b oil fields
b exploration and production activities has increased over the years particularly in the Bay 1 and the Sea 1 region
x1
x7
x5
x6
x8
x3
x2
x4
b Oil Fields
11
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Three major gas basins contribute x% of the natural gas production in China
Major Gas Basins in China
x1
b Gas Fields
x2
x3
x4
x5
x6
• Basin 1 in the south west, basin 2 and Basin3 in the north west and basin 4 in the north account for x% of the natural gas production in China
• Place 1 is the largest gas producing province in China accounting for z bcf of gas production in 20‐‐
• Place 2 is the second largest gas basin in China accounting for p% of the gas production in 20‐‐
12
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Country 1 is the major oil exporter to China accounting for d1% of the total oil imports
Oil Market – Exports
Oil Market – Imports
0
5,000
10,000
15,000
20,000
20‐‐
a4
20‐‐20‐‐
a3
20‐‐
x%USD mn
a1
a2c3%
c2%
c1%
c6%c5%
c4%
Country 4
Country 3Country 1
Country 2
Country 5
Others
USD mn
200,000
150,000
100,000
50,000
b2
20‐‐
b4
20‐‐
b3
20‐‐
b1
20‐‐
y%
Exports Country Split – 20‐‐
Imports Country Split – 20‐‐
o1%
Others
o5%
o4%
o2%o3%
Region 1
Region 5
Region 4
Region 3
Region 2
d6%d2%
d5%
d1%
d4%d3%
Country 8
Country 7
Country 6
Country 9
Country 10
Others
o9%
o8%o7%o6%
o10%
Others
Region 6
Region 10
Region 7
Region 9
Region 8
13
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
China is the world’s second largest importer of crude oil importing x% of its consumption
Oil Market – Exports
Oil Market – Imports
0
5,000
10,000
15,000
20,000
mn tonnes x%
20‐‐
a4
20‐‐
a3
20‐‐
a2
20‐‐
a1
c6%c5%
c4%c3%
c2%
c1%
Others
Country 5
Country 4
Country 3
Country 2
Country 1
20‐‐
b3
20‐‐
b2
20‐‐
b1
mn tonnes
200,000
150,000
100,000
50,000
y%
20‐‐
b4
Exports Country Split – 20‐‐
Imports Country Split – 20‐‐
Others
o5%
o4% o3%o2%o1%
Region 5
Region 4
Region 3
Region 2
Region 1
d4%
d6%
d5%d3%
d2%
d1%
Country 10
Country 9 Others
Country 8
Country 7
Country 6
o8%
o6%o7%
Others
o9%
o10%
Region 8
Region 7
Region 6
Region 9
Region 10
14
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
In terms of value, gas market in China witnessed a trade deficit of over USD x mn in 20‐‐
Gas Market – Exports
Gas Market – Imports under HS Codes
0
500
1,000
1,500
20‐‐20‐‐20‐‐
a2
x2%
a4USD mn
x1%
20‐‐
a1
a3
c4%
c6%c5%c3%
c2%
c1%
0
2,000
4,000
6,000
8,000
USD mn
20‐‐20‐‐
x4%
b1
20‐‐
x3%
b4
b3
20‐‐
b2
d3%
d2%
d1%
d7%
d4%
d5%
d6%
d8%
d9%
Country 9
Country 8
Country 7
Country 6
Country 10
Country 11
Country 13
Others
Country 12
Others
Country 2
Country 5
Country 4
Country 3
Country 1
Exports Country Split – 20‐‐
Imports Country Split – 20‐‐
15
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
In terms of volume, Chinese gas market witnessed a trade deficit of y mn tons in 20‐‐
Gas Market – Exports
Gas Market – Imports under HS Codes
0
500
1,000
1,500
20‐‐
x2%
20‐‐
a4
20‐‐20‐‐
USD mn
a2
x1%
a1
a3
c6%
c4%c3%
c2%
c1%
c5%
0
2,000
4,000
6,000
8,000
20‐‐
USD mn
20‐‐
b4
b2
x4%
20‐‐
b1
20‐‐
b3
x3%
d8%
d9%
d7%
d6%
d3%
d5%
d4%
d2%
d1%
Others
Country 12
Country 11
Country 13
Country 6
Country 7
Country 10
Country 9
Country 8
Country 4
Country 2
Country 5
Others
Country 3
Country 1
Exports Country Split – 20‐‐
Imports Country Split – 20‐‐
16
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Drivers & Challenges – Summary
Drivers
Untapped Potential
Rising Population and Urbanization
Growing Automobile Sector
Low Penetration
Power Generation
Growth in Petrochemical Industry
Challenges
Foreign Dependence
Reduction in CO2 Emission
Increase in Renewable Energy
17
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Presence of high amount of untapped oil reserves to act as a major growth driver for the oil market in China
Untapped Potential (1/2) ‐ Oil Reserves Impact
Regional DistributionQuality of ReservesDepth* of Reserves
0
2
4
6
8
10
C
b6b5
A
b2
b1
bn tons
B
b3b4
0
1
2
3
4
5
6
7
8
<2000 2000‐5000
a3a6
a5a2
a1
3500‐4500
a4 a7
>4500
a8
bn tons
• Finding 1
• Finding 2
• Finding 3
• Finding 4
69.60
500
1,000
1,500
2,000
c2
Region 1
c1
Bn tons
Region 2
c7
c8
Region 4
c6c9
Region 3
c5c4
Region 3
c3
In PlaceRecoverable
18
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
High untapped recoverable gas reserves in China is a major driver for the growing gas market in China
Untapped Potential (2/2) – Gas Reserves Impact
Regional DistributionQuality of ReservesDepth* of Reserves
69.60
500
1,000
1,500
2,000
c1
bcm
c6
Region 1 Region 4
c9
c8
Region 3
c7
Region 3
c5c4
Region 2
c3c2
In PlaceRecoverable
0
500
1,000
1,500
2,000
2,500
3,000
b2
b1
bcm
B
b4b3
A
• Finding 1
• Finding 2
• Finding 3
• Finding 4
0
1
2
3
4
5
6
7
8
bcm
>4500
a8a7
3500‐4500
a6a5
2000‐5000
a4a3
<2000
a2
a1
19
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Rising population and rapid urbanization to drive the growth of oil and gas industry in China
•Finding 1
•Finding 2 Sub‐ Finding 1
•Finding 3
•Finding 4
Rising Population and Urbanization Impact
Rise in PopulationHousehold Energy Consumption
0
500
1,000
1,500
53%
47%
57%
20‐‐
43%
b1 b2
20‐‐
mn y%
20‐‐e
b4
43%
57%
2‐‐‐e
b3
48%
52%
Rural populationUrban population
0
5
10
15
20
EJ
x%
20‐‐e
a2
20‐‐
a1
20
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Rise in demand for automobiles acts as a major growth driver for the oil and gas market in China
Impact
• Finding 1• Sub‐finding 1
• Finding 2• Sub‐finding 2
Growing Automobile Sector
Annual Demand – Gasoline and Diesel
0
50
100
150
200
250
300
mn tons
x%
20‐‐e
b2
20‐‐
b1
Automobile Production
Sales Segmentation (20‐‐)
0
5
10
15
20
25
30
20‐‐ 20‐‐e
c2
c5
20‐‐‐
c4
c3
20‐‐20‐‐ 20‐‐e
c6mn units
y%
c1
a1%
a2%
Commercial VehiclesPassenger Vehicles
21
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Relatively low level of oil and gas consumption is expected to provide a huge opportunity for market growth
•Finding 1• Finding 2• Finding 3• Finding 4
Low Penetration Impact
Per Capita Oil Consumption Per Capita Natural Gas Consumption
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Country 4
Country 3
a4
a5
China 20‐‐
a6
a3
a1
a2
Country 2
Country 1
tons
China 20‐‐e
0
500
1,000
1,500
2,000
2,500
b3
cms
China
b2
Country 6 Country 7Country 5
b4
b1
22
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Growing capacity of gas fired power plants is expected to act as a major growth driver for the gas market in China
Thermal Power Generation Impact
Thermal Power Capacity
• Finding 1
• Finding 2
• Finding 3
• Finding 4
0
500
1,000
1,500
2,000
GW
20‐‐e
a2
20‐‐
a1
x%
20‐‐e
a3
Gas Fired Power Plants Installation
0
10
20
30
40
50
60
GW
20‐‐e
b2
20‐‐
b1
y%
23
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Growth in petrochemical industry to raise the crude oil refinery capacity to x1 mn metric tons in 20‐‐
Growth in Petrochemical Industry Impact
Oil Product Demand
0
100
200
300
400
20‐‐
mn tons
x%
a1
20‐‐
a2
•Finding 1•Finding 2•Finding 3•Finding 4
24
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Increase in foreign dependence for oil and gas supply to act as a major challenge to the Chinese oil and gas market
Foreign Dependence Impact
Foreign Crude Oil Dependence
0
20
40
60
80
%
20‐‐ 20‐‐
y%
a2
a4
a3
20‐‐ 20‐‐
a1
•Finding 1•Finding 2•Finding 3•Finding 4
25
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Reduction in carbon emission under the 12th FYP to emerge as a major challenge to the oil and gas market in China
Reduction in CO2 Emissions Impact
Per Capita CO2 Emission
0
2
4
6
8
tons
20‐‐
a2
19‐‐
a1
p%
20‐‐
q%
0
5
10
15
%
20‐‐e
y%
20‐‐
x%
r%
Rise in Non Fossil Fuel Usage
•Finding 1•Finding 2•Finding 3•Finding 4
26
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Growing emphasis on renewable energy utilization to act as a major challenge to the oil and gas market in China
Increase in Renewable Energy Impact
• Finding 1
• Finding 2
Renewable Energy Share
0
5
10
15
20‐‐
ad1
x% ad2%
20‐‐e
0
50
100
150
200
250
300
a1
a2
a4 a6
A
a3
GW
C
a5 a8
B
a7
D
20‐‐e20‐‐c2%c1%
z2
b4%
z1
b3%
0%
b2%b1%
80%
c4%
GW
100%
60%
40%
20%
c3%
20‐‐ 20‐‐e
Renewable Energy Source Split
B
D
C
A
27
SAMPLE
Regulatory body 1
Development of energy regulatory framework in China
Regulatory body 2 Regulatory body 3
• Point 1
• Point 2
• Point 3
• Point 1
• Point 2
• Point 1
• Point 2
28
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Chinese 12th five year plan has outlined several steps to develop the oil and gas industry in China
Initiatives
Target
• Point 1• Point 2
Initiative 1
• Point 1
• Point 2
• Point 3
• Point 4
Initiative 2
• Point 1
• Point 2
• Point 3
12th Five Year Plan‐ Focus on Oil and Gas Market in China
29
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Tax and Pricing Reforms
Acknowledging the need for reforms, China has revised pricing and tax policies of its oil and gas market
KeyReforms
• Key Reform 1
• Key Reform 2
Conclusion 1
30
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Trends ‐ Summary
Construction and Expansion of LNG Terminal
Construction and Upgradingof Oil Refineries
Reliance on Unconventional Gas
Overseas Investments
Trends
31
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Chinese oil and gas players are venturing into construction and expansion of…
•Finding 1
• Finding 2
• Finding 3
Construction and Expansion of LNG Terminal (1/2)
Players invest in LNG terminals to secure unhindered supply of natural
gas
LNG Terminals – Current and Proposed Development Plans
Terminal Name Status/Online Date DeveloperInitial / Expansion Capacity (Mncf/d)
Possible Supplier
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
32
SAMPLE OIL AND GAS MARKET IN CHINA 2012.PPT
…oil and gas terminals with a view to obtain a secure supply of natural gas
Construction and Expansion of LNG Terminal (2/2)
LNG Terminals – Current and Proposed Development Plans
Terminal Name Status/Online Date DeveloperInitial / Expansion Capacity (MMcf/d)
Possible Supplier
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
33
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Following a surge in demand for oil, key players are foraying into the construction and…
Construction and Upgrading of Oil Refineries (1/2)
Players invest in oil refineries to increase
production and earn higher profit
‐
Oil Refinery Projects
Company Location Capacity Planned start‐date Features
‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
• Finding 1
• Finding 2
• Finding 3
34
SAMPLE OIL AND GAS MARKET IN CHINA 2012.PPT
…upgrading of oil refineries to maintain a steady supply of oil
Construction and Upgrading of Oil Refineries (2/2)
‐
‐
‐
‐
‐
‐
‐
‐
‐
Oil Refinery Projects
Company Location Capacity Planned start‐date Features
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
35
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Chinese players are making overseas investments with a view to reduce foreign dependence for oil and gas
Overseas Investments (1/5)
With a view to increase
resource base overseas
investments are on the rise
Point 1
Point 3
Point 2
Point 5
Point 4
Point 6
Point 7
Point 8
Point 9
Point 10
Investment Motivations and Key Initiatives
36
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Mergers & Acquisitions in Chinese Oil and Gas Market
Overseas Investments (2/5)
Source: EIA
Size (USD bn)ShareBuyer/ InvestorTargetDate
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
‐ ‐ ‐ ‐ ‐
37
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Heavy import dependence has led the players to shift their focus on…
Reliance on Unconventional Gas (1/2)
Players are foraying into production and development of unconventional
resources to reduce imports
Unconventional Gas
Type 2 Type 3Type 1
Conclusion 1
• Finding 1• Sub‐Findings
38
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
…the development of unconventional sources to meet the growing demand for energy
Reliance on Unconventional Gas (2/2)
CBM Location CBM Production
Shale Gas
Coal Bed Methane
• Finding 1• Finding 2• Finding 3
• Finding 1• Finding 2• Finding 3
Reserves CBM Shale
Total Reserve ‐ ‐
Recoverable Resource ‐ ‐
Proven Reserves ‐ ‐
Non‐ Conventional Gas Reserves
0
1
2
3
4
5
mncf/d
c%
20‐‐e
b3
20‐‐e
b2
20‐‐
b1
0
10
20
30
40
50
60 a1
SouthNorth Northwest
a2
a4
a3
Northeast
mncf/d
39
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
-50,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000
Net Income
Revenue
m3m4
m1
m2
Domestic Competition – Summary (1/2)
Size of the Bubble represents Market Capitalization in USD mn
Company 3
Company 4Company 2
Company 1
40OIL AND GAS MARKET IN CHINA 2012.PPT
Domestic Competition – Summary (2/2)
Revenue and Profit for Major Domestic Companies
104
106
22,230
10,890
13
131
46
68
0 5,000 10,000 15,000 20,000 25,000
USD
Company 4
Company 3
Company 2
Company 1
Revenue Net Income
SAMPLE
41
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Domestic Company – Company 1
Key People
Products and Services
Company Information Locations – China
Corporate Address‐
Tel No. xxx‐yyy‐zzz
Fax No. xxx‐yyy‐zzz
Website www.xxx.com
Year of Incorporation 20‐‐
Ticker Symbol ‐‐‐ (‐‐‐)
Stock Exchange ‐‐‐ (‐‐‐)
Category Products/Services
Category 1 Product 1, Product 2
Category 2 Product 3, Product 4
Category 3 Product 5, Product 6, Product 7, Product 8
Category 4 Product 9 and Product 10
Name Designation
Person 1 Vice Chairman
Person 2 Chief Finance Officer
Person 3 Senior Vice President
Person 4 Senior Vice President
Headquarters
42
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Financial Snapshot Key Ratios
Financial Summary
Domestic Company –Company 1
• The company incurred a net profit of USD x mn in FY 20‐‐, as compared to net profit of USD y mn in FY 20‐‐
• The company reported total Income of USD z mn in FY 20‐‐, registering an increase of q per cent over FY 20‐‐
• The company earned an operating margin of t per cent in FY 20‐‐a decrease of g percentage points over FY 20‐‐
• The company reported debt to equity ratio of r in FY 20‐‐ a decrease of u per cent over FY 20‐‐
Financial Summary
Profit / Loss
Total Income
0
100,000
200,000
300,000
0
500
1,000
1,500
2,000a2
a1
20‐‐20‐‐ 20‐‐20‐‐
Total IncomeUSD mn
a3
ProfitUSD mn
a4
Indicators Value (20/02/2012)Market Capitalization (USD) ‐
Total Enterprise Value (USD) ‐EPS (USD) ‐PE Ratio (Absolute) ‐
Particulars y‐o‐ychange (2010‐09)
2010 2009 2008 2007
Profitability Ratios
Operating Margin ‐ ‐ ‐ ‐ ‐Net Margin ‐ ‐ ‐ ‐ ‐Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐Return on Equity ‐ ‐ ‐ ‐ ‐Return on Capital Employed ‐ ‐ ‐ ‐ ‐Return on Working Capital ‐ ‐ ‐ ‐ ‐Return on Assets ‐ ‐ ‐ ‐ ‐Return on Fixed Assets ‐ ‐ ‐ ‐ ‐
Cost Ratios ‐ ‐ ‐ ‐ ‐Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐Liquidity Ratios ‐ ‐ ‐ ‐ ‐
Current Ratio ‐ ‐ ‐ ‐ ‐
Cash Ratio ‐ ‐ ‐ ‐ ‐Leverage Ratios ‐ ‐ ‐ ‐ ‐Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐
Efficiency Ratios ‐ ‐ ‐ ‐ ‐
Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐Asset Turnover ‐ ‐ ‐ ‐ ‐Current Asset Turnover ‐ ‐ ‐ ‐ ‐Working Capital Turnover ‐ ‐ ‐ ‐ ‐Capital Employed Turnover ‐ ‐ ‐ ‐ ‐
Improved Decline
43
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Key Business Segments Key Geographic Segments
Domestic Company –Company 1
Key Recent Developments
Description News
Overview• Company is a petroleum and petrochemical enterprise group functioning as a state authorized investment organization where the state holds the controlling share
New business• In 20‐‐ company has announced plans to increase the country1 crude oil imports from x barrels per day under a term contract
Business highlights• In the first half of 20‐‐ company produced t million barrels of crude oil registering a YoYrise of x %; and produced g billion cubic feet of natural gas registering a YoY rise of y %
0%
50%
100%
a15%
a11%
a7%
a3%
a14%
a10%
a6%
a2%
20‐‐
a13%
a9%
a5
a1%
20‐‐
a16%
a12%
a8%
a4%
20‐‐20‐‐
Chemical Industry
Marketing and Retailing
Refinery
Exploration and Production
0%20‐‐
100%100%
50%
Country1
The company’s geographic reportable segment is
‘Country 1’
44
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Foreign Company – Company 2
Key People
Source: Company Websites; Press Articles; Databases
Products and Services
Company Information Locations – China
Corporate Address ‐
Tel No. xxx‐yyy‐zzz
Fax No. xxx‐yyy‐zzz
Website www.xxx.com
Year of Incorporation 19‐‐
Ticker Symbol ‐‐‐ (NYSE)
Stock Exchange New York Stock Exchange
Category Products/Services
Category 1 Product 1
Category 2 Product 2
Category 3 Product 3
Name Designation
Person 1 Chairman
Person 2 Chief Financial Officer
Person 3 Chief Administrative Officer
Person 4 Senior Vice President
Regional Office
45
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Financial Snapshot Key Ratios
Financial Summary
Foreign Company – Company 2
Financial Summary
Profit / Loss
Total Income
0
10,000
20,000
30,000
0
5,000
10,000
20‐‐20‐‐
a2
a4
20‐‐20‐‐
ProfitUSD mn
Total IncomeUSD mn
a3a1
Indicators Value (21/02/2012)
Market Capitalization (USD) ‐
Total Enterprise Value (USD) ‐EPS (USD) ‐PE Ratio (Absolute) ‐
Particulars y‐o‐ychange (2010‐09)
2010 2009 2008 2007
Profitability Ratios
Operating Margin ‐ ‐ ‐ ‐ ‐Net Margin ‐ ‐ ‐ ‐ ‐Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐Return on Equity ‐ ‐ ‐ ‐ ‐Return on Capital Employed ‐ ‐ ‐ ‐ ‐
Return on Working Capital ‐ ‐ ‐ ‐ ‐
Return on Assets ‐ ‐ ‐ ‐ ‐Return on Fixed Assets ‐ ‐ ‐ ‐ ‐
Cost Ratios ‐ ‐ ‐ ‐ ‐Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐
Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐Liquidity Ratios ‐ ‐ ‐ ‐ ‐
Current Ratio ‐ ‐ ‐ ‐ ‐Cash Ratio ‐ ‐ ‐ ‐ ‐
Leverage Ratios ‐ ‐ ‐ ‐ ‐Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐Debt to Capital Ratio ‐ ‐ ‐ ‐ ‐Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐
Efficiency Ratios ‐ ‐ ‐ ‐ ‐Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐Asset Turnover ‐ ‐ ‐ ‐ ‐Current Asset Turnover ‐ ‐ ‐ ‐ ‐Working Capital Turnover ‐ ‐ ‐ ‐ ‐Capital Employed Turnover ‐ ‐ ‐ ‐ ‐
Improved Decline
• The company incurred a net profit of USD x mn in FY 20‐‐, as compared to net profit of USD y mn in FY 20‐‐
• The company reported total Income of USD z mn in FY 20‐‐, registering an increase of q per cent over FY 20‐‐
• The company earned an operating margin of t per cent in FY 20‐‐a decrease of g percentage points over FY 20‐‐
• The company reported debt to equity ratio of r in FY 20‐‐ a decrease of u per cent over FY 20‐‐
46
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Key Business Segments Key Geographic Segments
Foreign Company – Company 2
Key Recent Developments
Description News
Overview• Company is the xth largest energy company in the country 9 based on market capitalization and proven reserves and production of oil and natural gas
New business
• Company is investing in several emerging businesses like development of integrated power generation, new technology projects to support exploration, production, refining and marketing of oil and gas products
• Company 3 signed an agreement with the company to lease oil; and natural gas at Lowry for USD x mn
0%
50%
100% a11%
20‐‐
a12%
a18%
a17%a15% a16%
a8%
a7%a5% a6% a10%
20‐‐
a9% a14%
20‐‐
a2%
a13%
a4%
a3%
a1%
20‐‐
Refining and Marketing
Exploration and Production
Midstream
Emerging Business
Chemicals
0%
50%
100% c2%b1%
c6%
b4%
b3%
20‐‐
b6%b2%c5%
c3%c1%
c4%
b5%
20‐‐
Country 6
Country 5
Country 4
Country 1 Country 3
Country 2
47
SAMPLE
OIL AND GAS MARKET IN CHINA 2012.PPT
Led by rising investments and infrastructure construction, Oil and gas market in China to witness robust growthChinese energy industry has tremendous growth opportunity as the unexplored reserves of oil and gas available less
than 2000 feet is estimated to be X% and Y% respectively
Huge untapped oil and gas reserves to act as a major growth driver for the oil and gas market in China
Opportunities in the Market Market Size
Government Initiatives
Challenges
Rising population and urbanization coupled with rising automobile demand and low penetration to significantly contribute to the growth of the market
Growing investments in gas fired power plants along with the growing petrochemical industry to lead to rapid market growth
• Foreign Dependence
• Reduction in CO2 Emission
• Increase in Renewable Energy
Measures to boost the Oil and Gas industry has been a major focus of the 12th five year plan in China
Reforms in resource tax by the government benefited both the buyers and producers of the oil and gas marketPricing reforms has also been undertaken by the government to boost the oil and gas market
0
200
400
600
mn tonnes
20‐‐e20‐‐
a2a1
x1%
a3
20‐‐e0
50
100
150
bcm
c1
x5%
20‐‐e
c2
20‐‐
Oil Demand Gas Demand
48OIL AND GAS MARKET IN CHINA 2012.PPT
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