Chapter 1337 Xiangjiang Oil Market

Chapter 1336 Hong Kong Oil Market

"Mr. Xia, in terms of policy, the Hong Kong government has given a lot of support to these three major industries, but in the final analysis, market players still need to play a supporting role."

"The Hong Kong government has been actively attracting investment, but in these major industries, foreign giants are not interested, and local capital investment is relatively small, so it is difficult to see results."

"Especially in the petrochemical industry, since we determined the development strategy of Heungkong, it has been greatly constrained. All of them come from Star City. Facing the competition of Star City, it is difficult for Heungkong to attract giants to invest."

After Su Xingjian finished talking about the difficulty, he looked at Xia Yu helplessly.

The market economy is like this. The government can only play a guiding and auxiliary role. In the final analysis, it depends on whether the capital is willing to invest or not. If the capital is not willing, it will sit on the wax.

Among the three major industries, the petrochemical industry has the greatest potential, but the economic added value in the first half of the year is only 1.786 billion Hong Kong dollars, and it is more than 30 billion Hong Kong dollars in the whole year, except for a series of small-scale investment companies with local capital , that is, the contribution of the gas station market.

It’s not that the Hong Kong government doesn’t work hard, it’s just that Star City is too insidious. Taking advantage of the market position and advantages it already has, it continues to disrupt Hong Kong and make international oil giants give up investing in Hong Kong.

This is to kill Heung Kong's petrochemical market at the very beginning and avoid future competition.

"Mr. Xia, today I specially brought a report on the development of the petrochemical industry in Xingcheng, which I specially asked to investigate."

Having said that, Su Xingjian took out another document and handed it to Xia Yu.

Xia Yu didn't say much, just took the report and read it.

The current situation of the petrochemical industry in Xingcheng was gradually learned by Xia Yu.

Star City, which is smaller in area than Hong Kong, has almost no mineral and petroleum resources. At this time, it is already a well-known oil refining country in Asia, becoming the largest oil refining center in Asia and the third largest oil refining center in the world, second only to Houston in the United States and Rotterdam in the Netherlands. .

Star City's oil refining industry has become one of the main pillars of Star City's economic achievements. Currently, it accounts for 37% of Star City's entire industrial output value, and its petroleum product exports account for one-third of Star City's total exports!

It all started more than twenty years ago.

In 1960, Star City had almost just obtained autonomy, and was thinking of finding a suitable development path for Star City based on its own situation.

At that time, the Star City government adopted the industrialization plan designed by the Dutch economist Albert Wensmin and developed the petrochemical industry as a pillar industry.

Under the guidance of this industrial plan, Star City has brought in the first batch of large multinational oil giants, such as Royal Dutch Shell Oil Company in 1961, British Petroleum Company in 1964, and Exxon Oil Company in the United States in 1966, etc. .

Then in 1973, there was a very crucial step, that is, Star City Development Bank, British Petroleum Corporation, and Chevron's Caltex Oil Company jointly invested and established Star City Oil Refining Company in that year.

At present, Star City Refinery has five refineries, which belong to Star City Shell Oil Company and Star City Exxon Oil Company. Star City Mobile Oil Company, Star City Refining Company and BP.

Among the five refineries, Star City Shell Oil Company has the highest production capacity, with a daily refining capacity of 440,000 barrels, followed by Star City Exxon Oil Company with 225,000 barrels per day, and Star City Mobile Oil Company with 200,000 barrels per day. Star City Refinery's 155,000 bpd and BP's 25,000 bpd.

A total of 1.045 million barrels per day!

For the whole year, it is 380 million barrels per year, which is equivalent to 53 million tons of refining capacity per year!

Of course, this production capacity is at full capacity. In fact, the operating rate of the five major refineries in Star City is about 80%, which is higher than the 50% to 70% of developed countries in Europe and the United States.

At present, the daily refining volume is about 844,000 barrels per day, of which 174,000 barrels are consumed domestically, 340,000 barrels are exported, and 330,000 barrels are processed for Indonesia, Malaysia, Bangladesh and other oil merchants.

Of the 340,000 barrels exported, the largest market was the island nation, which absorbed 22 percent of the export value.

Next is Heung Kong, which absorbs 18% of the export value, about 62,000 barrels per day!

Even according to the current situation, Heung Kong has to import more than three million tons of oil from Star City a year.

The current oil consumption of Hong Kong is 138,000 barrels per day on average, and it is estimated that it will reach 7 million tons in the whole year, basically relying on imports!

Therefore, the oil exported by Xingcheng to Heungkong accounts for nearly half of Heungkong's oil imports!

...

"So, last year, Hong Kong's oil imports were about $2 billion?"

After reading the information, Xia Yu had the international crude oil price and the local gasoline price in Xiangjiang in his mind. Combined with the local oil consumption in Xiangjiang last year, he calculated an answer.

"Yes, in that range!"

Su Xingjian nodded and said.

Two billion US dollars is not a small amount, equivalent to 12.3 billion Hong Kong dollars.

If there is a local oil refining company in Hong Kong that can fully eat this market, according to the gross profit margin of 30% to 40%.

It means that the gross profit will reach 3.69 billion -4.92 billion Hong Kong dollars!

So the net profit is at least two billion Hong Kong dollars!

The local oil market in Hong Kong is enough to support an oil refining company with a market value of more than 20 billion yuan. This is only for oil refining, excluding the oil retail market.

With the geographical advantage of Xiangjiang, it is located at the junction of the Pacific Ocean and the Indian Ocean. The geographical advantage is actually equal to that of Star City.

The most important thing is that Xiangjiang is closer to the southeast peninsula, closer to the island countries and Taiwan Province, and backed by the mainland with infinite potential in the future. The development potential of Xiangjiang's petrochemical industry is higher than that of Star City!

Xingcheng has always been the world's three major oil refining centers in future generations, and Xiangjiang is also eligible to compete.

As far as Xia Yu knows, of the top ten oil refineries in the world in later generations, Asia occupied five except the Middle East, South Korea had three exclusively, and the rest were one each in India and Xingcheng, and the three in South Korea were more than those in Xingcheng. big.

This proves that the Asian refining market is still in an incremental market, and there is still a lot of room for market competition.

Although Xiangjiang has a weak foundation, there is still time and space to catch up.

It's just that because of Star City, it is difficult to attract international oil giants to invest in Hong Kong.

There are many local bigwigs in Hong Kong who have the strength to invest in refineries, but they all suffer from lack of technology and experience, as well as huge competition risks. The advantages in their hands are not enough to hedge the risks, so this situation occurs.

Sure enough, at the critical moment, he still had to rely on him!

It happened that his Pacific Oil Company had annexed the oil refining business of Gulf Oil Company in northern and western Europe. After nearly half a year of integration, it has already stabilized.

After that, Xia Yu chatted with Su Xingjian about the big health industry and the tourism and entertainment industry. He had a general idea in his heart, but he still needed to further understand and judge.

...

"Governor Su, I understand. I will solve the development difficulties encountered by these three industries."

"It's just that the policy support from the Hong Kong government is needed at that time, and I'm asking someone to contact you directly."

Xia Yu took a sip of tea and said with a light smile, taking everything over.

Su Xingjian suddenly felt relieved and said with a smile on his face: "No problem, as long as I stay in Hong Kong for one day, the Governor of Hong Kong can fully assist me."

"Mr. Xia, then I won't disturb you for now. I'll have something to do when I go back."

"OK."

"Jianning, send Governor Su for me."

"Okay, Chairman."

...

PS: The first update

(End of this chapter)