Peiyang Chemical Equipment Co., Ltd.
The Future Direction of the Alliance
I. Overseas adjustment of raw materials
Crude oil is adjusted overseas which can reduce prices, save production costs and store costs from the perspective of supply
2. Build pipelines, logistics and warehousing systems
Driven by the government, led by the enterprise and implement the following three development directions:
2.1 Accelerate the construction of crude oil terminal
2.2 Build reserve tank area
2.3 Joint charter, float or spline
2.4 Accelerate the construction of pipelines
3. Unified negotiations and long contract signing on oil
The structural features of the production facilities of the independent refinery, the centralized procurement of the alliance, the savings of logistics costs, the operation of funds, and the stable demand provide the conditions for long-term oil contracts. The alliance plans to speed up direct talks with national oil companies to build up the pool of funds, to secure oil sources, lock in costs and prevent the cost of rising oil prices.
4. Rapid integration of financial markets
Oil deals have strong financial attributes. Exchange rates, interest rates, and volatility of commodities futures market will bring both risks and opportunities, alliance associates with financial business which can avoid the risk of exchange rate fluctuations in crude oil procurement, the changes of interest rates among countries, and crude oil procurement of valuation risk, and then obtain the proceeds.
In public ownership as the main body of the economic system, large state-owned enterprises and state-owned enterprises long-term oil are at the dominant position of the energy industry. Local independent refinery is just "catfish" of the industry. And Local independent refinery once gets equal market main body status, and policy for industry fair, will achieve rapid development, also can contribute to the national economy.