In 2011, the petroleum and chemical industry achieved steady and rapid growth, further improved profitability, improved operational quality, accelerated the pace of industrial structure upgrading, extended product technology to various fields, achieved significant energy-saving and emission reduction effects, improved resource utilization efficiency, continued to grow rapidly in imports and exports, accelerated stable investment, and basically stable market supply and demand, achieving the goal of a good start to the 12th Five Year Plan. In 2011, the cumulative total output value of enterprises above designated size in the entire industry was 11.28 trillion yuan, a year-on-year increase of 31.5%; The total profit was 8070.1 billion yuan, an increase of 18.83%; The main business revenue was 10.8 trillion yuan, an increase of 30.44%; The total assets amounted to 7.74 trillion yuan, an increase of 18.73%; There were 6.6953 million employees, an increase of 8.59%. The industry's fixed assets investment was 1.43 trillion yuan, up 23.4%. The fixed assets investment in oil and gas exploration industry was 272.035 billion yuan, up 12.2%, accounting for 19% of the total investment in the industry; Fixed assets investment in oil processing industry was 147.2 billion yuan, up 14.7%, accounting for 10.29% of the industry; Fixed assets investment in the chemical industry was 96.0126 billion yuan, up 28.1%, 4.7 percentage points higher than the average growth of the whole industry, accounting for 67.13%. The total import and export volume of the industry was 607.146 billion US dollars, an increase of 32.3%, and the trade deficit was 262.46 billion US dollars, an expansion of 38%. Among them, the total import and export volume of the oil and gas extraction industry was 208.547 billion US dollars, an increase of 47.2%, accounting for 34.35% of the industry's total import and export volume; The total import and export volume of the petroleum processing industry was 62.345 billion US dollars, an increase of 32%, accounting for 10.3% of the industry; The total import and export volume of the chemical industry was 323.996 billion US dollars, a year-on-year increase of 24.6%, accounting for 53.4% of the industry.
In 2012, it is expected that the economic growth rate will further slow down, and the European debt crisis will become the primary risk factor, leading to a loosening of global oil supply and demand. The overall oil price will be lower than the 2011 level, with WTI oil prices expected to be $90-100 per barrel and Brent oil prices at $105 per barrel, and the price difference between the two will narrow. The main factors affecting oil prices include the development of the world economy, the trend of the US dollar, and the geopolitical situation in the Middle East. In the short term, the continued escalation of the situation in Iran has led to this wave of rising oil prices. However, in the medium to long term, the dominant factor in the trend of oil prices is the growth rate of the world economy. In 2012, the European economy struggled to operate, the US economy struggled to recover, and the growth rate of emerging market countries slowed down. There is a high probability of further economic downturn, so it is difficult for oil prices to exceed the level of 2011. However, due to the expectation of loose liquidity and the complex evolution of the situation in the Middle East, oil prices are expected to remain high. The high operation of oil prices is favorable for upstream oil extraction related enterprises, while for downstream basic chemical enterprises, the cost squeeze on the demand side makes the situation even worse. In 2012, the total investment in oil and gas exploration and development reached a new high, with an increase of 10% on the basis of 12% in 2011, reaching 598 billion US dollars, an increase of more than 10% for three consecutive years. The hotspots of exploration and development will still be deepwater, unconventional oil and gas, and LNG. Investment in oil and gas exploration and development will receive more attention in China, mainly determined by China's energy structure. China's energy structure is' rich in coal, poor in oil, and low in gas', and its dependence on oil and gas is increasing. In 2011, the dependence on oil and crude oil exceeded 55%. China's huge demand for oil and gas has forced the government and enterprises to increase their efforts in oil and gas exploration and development. At the same time, the country has also introduced a series of policy plans, such as the "Strategic Action Plan for Mineral Exploration Breakthrough (2011-2020)" and the "12th Five Year Plan" for various sub industries, emphasizing the need to increase exploration and development efforts for related oil and gas resources. The "12th Five Year Plan" period in the future will be an important development opportunity for our oil and gas exploration and development.