In recent years to foreign big petrochemical companies “low cost strategy” in an all-round and perspectives, the comprehensive analysis, and put forward the suitable for China’s national conditions of petroleum and petrochemical industry “low cost strategy”.
In the 90 s, facing the world petroleum and petrochemical industry of the increasingly intense competition, all-round reduce the cost and improve the economic benefit, has become the foreign petroleum and petrochemical company philosophy of goals. The lowest cost to the pursuit of a big company to promote the merger between, accelerate the adjustment of industrial structure, improve the level of performance in assets, optimize the allocation of resources and market, and promote the progress of technology, strengthen the management of the enterprise management, streamline personnel agencies, increase the economic benefit.
With the world of the 21 st century, petroleum and petrochemical industry also into maturity period. The globalization of economy and the coming of the knowledge economy time, the petrochemical industry expanded oil market, improve the technical level, but also make the competition is more intense, the profit space became smaller. Vigorously carry out the “low cost strategy” in recent years, is foreign big petrochemical companies improve competitiveness and increase benefits the practice.
1, foreign big petrochemical companies the low cost of strategy
1.1, through the merging, combining lower production and operation cost
Large-scale merging, combining based on this and realize the optimal allocation of factor of production and the reasonable combination, which is complementary, and the effect is foreign petrochemical companies lower the cost of main methods.
In August, 1998, BP merger, both most business complementary and synergy effect can reduce cost about 2 billion dollars a year. BP-then, o most acquisition, and improve the production efficiency of Alaska upstream, a decrease in Alaska and the other 48 states repeat assets, and form the United States off the coast of things across the oil sales network, every year, and can produce some $1 billion of collaborative benefits. In December 1998, exxon and mobil comprehensive company merger, produced the world’s largest oil company. According to its December 1999, figures released by the merger between each year with at least $3.8 billion produced benefits (pre-tax profit), due to improve operation efficiency, reduce the operation cost in 1999 (us $1.2 billion), compared with 1998 in 2000 will increase net profit of $1 billion, 2003 years ago will increase net income of about $2.5 billion. In October 1998, the Japanese oil company and mitsubishi oil company merger as Japan’s largest oil companies-mitsubishi, due to the depletion of stone, oil refining and oil sales network integration, to make new company reduce costs $451 million. France’s total and Belgium, Philip oil company merger become the world’s fifth largest oil company, both to refining the main characteristics of integrating with the synergies generated for its in 2001, 2002 in, each more business profit of about $300 million and $460 million, in the financial and operating on the use of fund and the coordination effect will also increase of about 1.8 ~ $350 million operating profit.
The merger of the chemical company in the world there are many lower the cost of successful cases. 1998 years Switzerland ciba-refinement and Clariant merged to the world’s largest specialty chemicals company, cut costs about 600 million Swiss francs, save labor costs about 400 million Swiss francs, etc. In August, 1999, chemical purchase way union carbide subsidiary, after the merger will produce $250 million in the first year of the second year, with benefits for 500 million dollars.
This shows, the big company between merging, combining can be in a short time, cost greatly decreased significantly improve economic efficiency, enlarging the scale and increase the competitive power.
1.2, through the assets structure adjustment and replacement reduced operating costs
For assets displacement, the optimization and upgrading, strengthening the core business advantage, streamlined non-core business, petroleum and petrochemical company is abroad in the 90 s is generally used to reduce cost, get reset funds, improve labor productivity, improve the quality of the assets and effective way of the profit level.
Shell group in the upstream of the low cost strategic measures through asset replacement is the key region shall realize development, improve the economic scale and reduce operating costs. In January 1997, shell group to the state of Louisiana Bayou Black oil field in exchange bought most company in Michigan state of north oil and gas assets. Both in Michigan is very close to the upstream assets, for an make shell in the area where the development achieved, and to reduce the production cost. In April 1999, shell in the gulf of Mexico the continental shelf almost half of production (nearly a quarter of the oil crude oil production) sold to the company, I can with Apache exploration and development business in large scale, low cost and has long-term significance of oil and gas fields, to achieve the assets of upgrades. In June 1999, shell group for the same consider also sold its in Montana and North Dakota Williston basin in the outer reaches of the southeast oil field. Shell with other company established through joint venture enterprise to reduce operating costs. Shell group, and most companies in 1996 founded the joint venture the third largest oil production company-Altura energy Co., LTD, reduce the repeated infrastructure, increase the economic scale and reduce operating costs.
Shell chemical company from 1998 began with great dynamics business restructuring, the purpose is to keep the business use return on capital raised from 12% to 15%. The core business shell chemicals company positioning in cracking products, oil chemical basic raw materials and large polymer, sold, about 40% of the business, to keep only 21 kinds of chemicals in the business of 13. The adjustment that shell fell about 40% the occupation of the capital, reduce cost about 350 million dollars, and sell assets cause cut 3500 jobs, keep business will further cut 1000.
Through the structure adjustment, realize the upgrade of assets, and improve the management efficiency of the foreign petroleum and petrochemical company, is the effective measures to reduce the operating cost, is also using the capital remain higher returns in an effective way.
1.3, through the streamlined, JianRen efficiency to reduce labor costs and management fees
To close to the market, improve the ability of fast reaction of market changes for the purpose of institutional reform and adjustment, streamlined, reduce the management level, JianRen efficiency, the foreign petroleum and petrochemical company efficiency and reducing the main practices.
In most companies during 1991 to 1992 to reduce the cost and its workforce. 1994 “most cancelled the middle” production company management, make the company become a “legal person” level, reduce the management level, more press close to market, close to their customers. Most companies will also be original 14 paramedical units into a Shared public service. This adjustment for most each year to save about $1.2 billion in pre-tax spending, the number of companies from 1991 in 54120 to reduce with BP before merger in 1997 to 43451 in.
Exxon in the 1995 to 1996 period, to global supply of raw materials service department was a major adjustment, reduce the about 5000 employees to the United States, but also the upstream and downstream business, European oil refining business and lube oil and plant overhaul, cut workers about 2000 people, reduce the cost before tax about $1 billion. Caltex oil company in June 1998 to its headquarters in Dallas moved to Singapore from the United States, reduce the management level, reduce the cost at least $50 million a year, because the efficiency, reduce annual costs increase of $250 million, 170 jobs.
JianRen efficiency is foreign petroleum and petrochemical company management has always theme. “JianRen” broadly refers to the adjustment of the business and institutions, concise and brought about by the dead wood cuts, is a means: “efficiency” is because the business and institutions of the restructuring, concise and improve the management and operation efficiency, so as to achieve the increase of recent benefit and cost reduction and long-term benefits for growth, purpose is to lay a solid foundation. Therefore, including the increased efficiency and increase benefits double meaning.
1.4, by strengthening the capital management, and optimize the investment structure to reduce the financing cost and investment costs
Foreign big oil company capital strength, but still much attention to financial and capital management, pay attention to the investment direction and specific investment project of choice to ensure investment rate of return. This is fundamentally to reduce cost and increase economic benefits of another important measures.
Exxon company has always kept good prestige, improve the investment capital efficiency, do well the optimal selection of investment projects. The “three A” grade credit rating makes exxon company can get cheap loans to the extent that reduce the financial cost. Chevron pays attention to the management of investment projects because, compared with 1991 cost saving 15%. The French company due to long totalfinaeif attention to choose the oil field of the low cost, the cost of that project from 1992 1996, the average $2.1 / barrel down to 1994-1998 years of $1.3 / barrel.
1.5, through the optimized combination, develops the market lower marketing costs and circulation costs
In the oil refining and marketing field, in the face of oil refinery profits fall in recent years, oil sales increasingly competitive situation, foreign oil companies to take all measures to consolidate and expand the market, reduce the cost and increase the competitive power.
1.5.1, through the set up a joint venture company expand market share and improve competitive position
In the oil refining and oil sales of regional field joint venture, change an olive-branch, become rivals for the partners, is in recent years foreign big oil companies to adapt to the market competition situation of one of the main approach.
In 1998 the shell group in the United States in the field of oil refining and marketing business and Texaco, Saudi oil refining company joint venture for Equilon and Motiva, changed the pattern of oil refining market, improving the shell group in the United States and oil refining and position of the competitive market. Due to the low cost and synergy effect, Texaco in Equilon Motiva and the share each company to save before the tax cost more than 30 million dollars. In March 1998, shell and caltex respectively with the Thailand petroleum administration bureau of the joint venture LuoYong refining companies and star refining companies established a joint venture company, oil refining margin from 4 to 5 dollars a barrel to raise $6 per barrel, reduce the operating personnel, reduce cost about $50 million each year. Shell group and exxon in August 1998 in Australia the merger between four and improve the refinery logistical and maritime transport efficiency, reduce the purchase cost, each year 2000 years ago can save costs around $80 million, in the business field will also reduce the cost of about 1 ~ $150 million. Exxon and BP in Europe each year for the downstream joint venture enterprise mobil save about $500 million investment in 1998, a $170 million pretax income, cutting staff 2700 people.
1.5.2, through the will focus on oil and gas station refinery near decrease flow cost
In oil circulation field of gas station, foreign oil companies exchange or buy, make its focus on the company’s advantage, especially focused on the market the company oil refinery and near to reduce cost, the circulation.
The 80 s to the early 90 s, chevron to the acquisition, exchange and the American oil means sales business in its refinery nearby the west and the south’s 16 states in 1992, it acquired in the Atlanta area shell of the 69 gas stations and exxon in Los Angeles area 20 home gas station; 1993 will the adjacent the Atlantic region in the United States in the middle of 60 gas station and exxon in southeast Florida company gas station on the exchange. Murphy oil company, in 1997, most of the gas station in east Germany and other company for exchange, won the core region in western Germany more than 20 gas station, make its more close to the Philippines in Antwerp, and to reduce the oil refinery transport costs.
1.5.3, a gas station scale large-scale and diversified services
In the oil refining industry profit continued to sluggish sales of gas station, oil field of large scale can be obtained more profit, this is foreign oil companies to lower marketing cost and improve the economic benefit of the other main methods.
1994-1998, total sales of the increase in oil, most foreign oil companies are almost in reducing the number of gas station, and scale but increased apparently. Such as company eni of Italy in domestic gas station number from 1994 in to about 11400 home reduce to 1998 in 9828, but the average home estimating from 1994 in is about 13500 m3 increase in 1998 to close to 15000 m3. Chevron in 1989 to 1998 years of 10 years, the company investment of the construction of the gas station of the Numbers from over 3000 to 1637, but reduce the scale is a nearly 50% increase.
The diversity of gas station service is foreign big oil companies oil sales field of another major practices. The design of the new company exxon gas station concept including can sell coffee, with hot milk, fresh fruits of the coffee shop, the combination of bread to provide lounge, travel, maps, AMT, postal services, tax and other services. Italian company eni in carrying out of the cafeteria in the customer on activity, by the end of 1998, the company has more than 2410 self-help, accounting for its domestic gas station about 25% of the total number of gas station, but the oil company sold 45% of total sales.
1.6, through the device large-scale, integrated refinery, saving energy and reducing consumption and reduce production operation cost
The refinery and petrochemical, refining, integration, large-scale device configuration, optimize material share services infrastructure, steam electricity, energy saving, consumption reduction and strengthen the joint take off the bottleneck and improve the flexibility and compatibility device operation technical transformation to fit the various sources of the raw materials, and make upstream and downstream processes supporting more reasonable, is foreign big petrochemical companies in oil refining and petrochemical production device of building, operating, and operation of the main approach to reduce the cost.
1.6.1, device the size of the large-scale
The size of the device, large-scale oil refining and petrochemical industry is one of the important measures of reducing costs. According to estimates, 12 Mt/a refinery of than 6 Mt/a refinery, unit of investment saving 25% and production cost saving 12% ~ 15%, and covers an area of and consumption materials will be reduced. The international famous consulting institution at Stanford research institute of ethylene plant showed that: 750 kt/a capacity for project cost 100%, capacity fell to 500 kt/a, rising costs by 4% ~ 9%, the production fell to 200 to 250 kt/a, rising costs by 14% ~ 33%. From the point of view of investment, according to reports in the literature, ethylene scale by 250 kt/a increases to 500 kt/a, the latter scale is former 2 times, but only for the former investment 1.74 times; By 250 kt/a scale increased to 750 kt/a, the latter scale is former 3 times, but investment is 2.46 times of the former.
The world’s major oil company the size of the refinery is larger, according to 1998 data, exxon refineries of average size for 7760 kt/a, mobil for 9010 kt/a, BP for 8040 kt/a, most for 10100 kt/a. The world has competitive advantage of the vinyl economic scale 70 s is 300 kt/a, 80 s is 450 kt/a, 90 s is 600 kt/a, 21 century will reach 800 to 900 kt/a, even 1000 kt/a above. Murphy oil and basf, currently in the United States Texas Arthur port construction the largest single series world, ethylene cracking unit capacity of 816 kt/a year. Exxon, mobil, recent construction company of ethylene plant for 800 kt/a most of the scale.
In addition, the original ethylene plant bottleneck of the emergence of the revamping is also a recent ethylene industry lower the cost of one of the main methods. According to estimation, from 1993 to 2000, with the us through the bottleneck of the revamping off increase ethylene production capacity reached about 1600 kt/a.
1.6.2, refining integration
Integration can produce huge refinery synergy, can be more than 25% of the refinery feed into higher value of petroleum products, can improve the joint enterprise return 2 ~ 5%. Gulf coast oil refining and petrochemical joint enterprise through the integration can be obtained more than $50 million a year), the coordination of benefit, oil and basf Arthur port in Texas oil refining and petrochemical integration device can produce more than $60 million a year the synergy of benefits. Integration can also have a significant refining cost advantages, namely (1) reduce the storage facilities sharing and shipment cost; (2) service and utilities sharing; (3) from the cost of trade intermediaries; (4) have operation of flexibility on the. In addition, refining integration can provide safe and reliable sources of supply of raw materials and by-products way out.
General look, refining integration is a can not only improve business, and can improve refinery petrochemical plant management to reduce cost and increase economic benefits of the effective method.
1.6.3, steam electricity, saving energy and reducing consumption cogeneration
Foreign oil firms in the downstream lower the cost of an alternative is to develop the steam joint electricity. A steam electricity cogeneration can realize saving energy and reducing consumption, and waste heat utilization, and environmental advantages.
Exxon company refinery and petrochemical plants steam electricity through joint reduce about 30% of the energy consumption. In 1998, exxon company in Louisiana baton rouge construction a set of 150 MW of electricity, reduce the combined power of outsourcing. At present, the company in the world scope exxon joint power generation device of total capacity has reached 1500 MW. CSN energy companies and phillips petroleum company, a joint venture in refinery built near whinny the pooh power export enterprise use of fuel gas refinery, using natural gas as added, generating 330 MW, invested about $200 million, and 33% for the rest of the export, electric power, for 45000 families of electricity.
1.6.4, strengthening operation management device reduce operating costs
Improve starts, extend the maintenance cycle can be utmost make existing assets into play, reduce maintenance cost and open parking loss, reduce the production cost.
Major foreign oil companies of the refinery almost all above 90% in starts, such as exxon refineries in recent years of 89%, starts shell and BP refinery starts of more reached 98.4%, and more than 100% year individual to the United States. LuMSi company design of ethylene plant of the survey shows that more than 95%, the common starts, some even more than 99%; Device running cycle to 3 years, even five years. Exxon company in improving reliability and maintenance in the device to make the exxon company every year about 150 million dollars to save the operation cost.
1.6.5, strengthening of device flexibility and adaptability of the reform
Foreign petrochemical companies to adapt to the price of the raw material and by-products the change of demand, generally improve the oil refining and ethylene device feeding flexibility.
BP refinery used the proportion of high sulphur crude oil, up from 28% in 1994 to 34% in 1997, to reduce raw material cost. Chevron chemical company in 1997 in Texas port Arthur of ethylene plant making a improvement of the low temperature fractionation and the selective cracking and urgent cold system, can adapt to all kinds of ethane/propane than, reduce the energy consumption by 30%. Exxon in 1998, the company in Texas refinery construction the soup a set of 2000 kt/a of the coking unit from Mexico, in order to adapt to the processing of heavy fuel oil.
1.7, through the technological innovation financial efficiency
The progress of science and technology is the world petroleum and petrochemical industry development, the most lasting the fundamental power.
In oil and gas exploration and development area, with the 3 d seismic technology, horizontal drilling technology, deep water drilling technology, large displacement drilling, plexus type well and reservoir simulation computer and other technical progress, western country every mouth the reserves of the drilling increase from 1986 in to less than 2000 barrel rise to the present 8000 barrels. The 3 d seismic technology can improve the precision of geological structure, increase the exploratory Wells observation success rate, reduce excavated well number. Drilling technology improve the level of production rate, make for oil and gas development of exploratory Wells, and more than 50% reduction of the number that the past no business value of mining become economic and feasible, but also improves the oil well production. Deep water drilling technology makes the cost of oil production in the depths of the sea and land can be comparable, such as the north sea and the gulf of Mexico oil field development costs for an average of about $4.5 / barrel, and in the 80 s of the north sea mido-suji introduce single large clamping $10 / barrels, small oil field 17 and 18 dollars/barrel; In the north sea production latest Norwegian oil production costs less than $1 a barrel. In the past 10 years of oil and gas technology progress has made the big oil companies developed countries average crude oil exploration and development costs fell by 60%, and proved reserves than 10 years ago, a 60% increase.
In the oil refining and petrochemical field, the technological progress is to reduce the production cost, improve product competitiveness of the key. Such as German bayer in recent years the development of gas-phase like polybutadiene production technology can make the production costs by 25%, wired production capacity of 90 to 120 kt/a. Mobil and Kellogg company of the joint development Atomax TM nozzle used in RFCC process, can make gasoline production rate increased by 5% (volume percentage), and conversion rate increased by 4% (volume percentage) above. In organic raw material production field, optimize production technical route has been the most of the main way to reduce costs. Such as ABB LuMSi round-the-world company developed can adapt to DuoZhong cracking raw materials, improve generation ethylene selectivity, reduce the cost of raw materials and energy consumption Ethylene2000 process design. Brown, a road developed low cost ALCET ethylene technology. Epoxy propane production technology eliminated the old LvChun method, switch technology advanced epoxy propane-styrene, epoxy propane-uncle butanol process technology, etc. Responsibility
Foreign petrochemical companies to the lowest cost of long-term unremitting efforts to make the technology progress and innovation of technology, uninterruptedly, endless pursuit. To exxon for example. Mobil took the lead in the industry on the load resistance coefficient LRFD (design) technology, only one year in Nigeria successfully reduced 34% of the oil well casing costs. Exxon development sea LNG processing technology, reduced to the land transport and processing the cost of construction land. Exxon still in its own refinery established the refinery monitor system, with electronic sensors to monitor the key equipment in refinery, eliminate hidden dangers and extend the service life of facilities and running time.
As noted, as the 1990 s global the high speed development of information technology, information technology in petrochemical industry is the application of the deep, wide, petroleum and petrochemical industry has entered into the integration of information era. The general trend is relying on network of petrochemical production process and management to realize in the process of each section of central planning, monitoring, management and coordination, depending on the model of the production process and business process and strategic decision for simulation and adjusted to integration and scientific. The petroleum and petrochemical production management decision-making scientific and technology production and business operation rationalization, optimize the allocation of factor of production has been, is and will have a significant effect, which also has become a big foreign petroleum and petrochemical company increase financial the important means. For example, Finland’s poll refinery since 1986, the application of computer technology popularization pinch analysis technology, technology, optimize energy use. Comprehensive The more than 30 sets of devices in 1994 years earlier pinch analysis, always reduce energy consumption by 4.3% and the investment capital is recovered in only 1.8 years. The refinery on energy consumption has become one of Europe’s most advanced refinery, the energy consumption than European standard refinery low half. Italy eni group, the company put forward early jeep with data model as the core of the refinery information integrated system solutions, and since 1983 in the subordinate seven refinery in four of implementing, economic effect is remarkable.
2, several Suggestions
To sum up, foreign large petrochemical companies in lower cost and improve the efficiency of the way is comprehensive, stereo, many angles, and is a long, never-ending unremitting pursue process. The authors of the macro, meso measures have the and micro. Many scholars at home and abroad has increased to the strategic height to know, called the “low cost strategy”.
2.1, foreign “low cost strategy” applies to China petrochemical enterprise
Foreign petrochemical companies of the industrial structure, product structure and the enterprise organization form with domestic similar, roughly international petrochemical industry and the characteristics of the Chinese petrochemical industry, the foreign similar basic large petrochemical companies in the implementation of the strategy of low cost to the experience of practice in principle also apply to our country petrochemical enterprise. At present, China’s state-owned enterprise reform is in a crucial stage, foreign petrochemical companies experience and practice, for we complete the fourth plenum of the 15 for the reform of state-owned enterprises, petroleum and petrochemical enterprise target for putting the hook has a lot of inspiring. Especially in our country is faced with the challenge of joining the WTO, China petroleum and petrochemical enterprise in the management system and operation mechanism need comprehensive reform, so the reference of foreign counterparts reduce cost effective experience, practice, for our country the petroleum and petrochemical enterprises to improve the international competitiveness is very important. Comprehensive implementation “low cost strategy”, should be the future of China’s industrial development of the petroleum and petrochemical a basic strategy.
2.2, abandon the old ideas, the change in new “low cost strategy” thought
The domestic enterprise and business managers most lower the cost of concept is still limited in on microscopic how to reduce the financial costs, artificial cost, production cost of narrow scope and foreign petroleum and petrochemical company’s “low cost strategy” has become an all-round, multi-level and from the macro, meso to micro a complicated system engineering, penetrated its business operation and all aspects of each field. Petroleum and petrochemical industry is the pillar industry in China, and relate to the industry of the national economy, the influence of the range, degree, and is deep technology and capital intensive industry in our country, so petroleum and petrochemical enterprise should renew the idea, according to the national condition the full implementation of the “low cost strategy”.
2.3, “low cost strategy” to resolve our country’s petroleum and petrochemical enterprise is one of the problems of the remedy
Due to long-term extensive management and some historical reasons, the petrochemical industry in China and the developed countries advanced level than there is a device is small in size and low industrial centralization, layout is not rational, have too many, low labor productivity, energy consumption is on the high side, the material consumptions, high cost management problems such as low efficiency. For example, with ethylene plant in the world is competitive advantage cracking unit the economies of scale in the 90 s for 600 kt/a, the beginning of the 21 st century will reach 800 to 900 kt/a; And our country at present the most massive only for 450 kt/a, of average size for 230 kt/a. From the refinery, the world average refinery scale for 5430 kt/a, and our country of average size only 3370 kt/a. Crude oil costs in China also significantly higher than foreign oil. Therefore, the implementation of the strategy of “low cost”, is undoubtedly solve China petroleum and petrochemical enterprise problems of one of the good.
2.4, China petrochemical industry the content of strategic cost Suggestions
According to foreign experience, with China’s national conditions, suggested that our cost for petrochemical industry, strengthen management, strategy: downsizing to improve efficiency and reduce labor costs and administrative expenses and financial expenses; Develop scale economy, to set up a number of and refinery of ethylene plant, implement, improve petrochemical refining and integration of the enterprise, and promoting the concentration of central heating power supply for steam, common public projects; Increase the technical strength, speed up the old enterprise technical transformation, eliminate bottleneck restriction, enhance the crude oil processing ability, improve intermediates and petrochemical product comprehensive utilization degree, enhancing device, prolong maintenance cycle starts, development and energy-saving technology; Optimize the investment structure, adjust investment direction, take “low investment, high yields, timely input, output of intensive” rapid development road of investment; Relying on scientific and technological progress, reduce cost, reduce oil refinery and petrochemical production cost; Through the implementation of the strategy of marketing and implementation, greatly reduce the cost of circulation field, reduce the cost of sales; Strengthen asset management, timely merger, closing a number of small refinery, and activate the state-owned assets stock, save money, give prominence to the core business and improving the competitive advantage.