Friday, October 7, 2011

New 36: private capital into the energy field there are three difficult - new, 36, private capital - by hi joiney

(625, 'HC Environmental Network quot State Council to encourage and guide private investment Health Development of a number of Opinion quot to encourage private capital participation Oil Natural gas development In this regard the trade figures in an interview with Shanghai Securities News said on private capital this is a big plus But now private capital into Energy There are three main areas of difficulty br br Difficult than is currently the largest available for distribution to a few blocks of private capital Although the quot opinion quot explicitly quot support private capital into the oil and gas exploration and development quot But the industry said quot China blocks for exploration and development a decade ago was registered over not to mention private capital even if like other state owned enterprises involved in oil and gas exploration and development it is difficult to pin inserted quot br br To CITIC Group for example the oil business has long been clear for the company 39 s main business the company has been Dagang oil field and other exploration blocks some blocks but not the oil and some blocks of hard mining eventually the majority of without success br br Industry said quot can not say that the land has no blocks but has not been registered more difficult to block the development economic value is difficult to find quot Onshore oil resources in the Source Increasingly nervous at the same time offshore oil more and more intense competition Thus private capital to enter the offshore oil exploration more difficult br br As a pioneer of offshore oil development the Chinese offshore oil group has most of the offshore blocks of development rights although in recent years PetroChina and Sinopec also recognized the potential of offshore oil but the two giant offshore blocks are approved do not add up and one fifth of CNOOC Insiders believe that quot the two giants 39 sea 39 are so difficult let alone private company quot br br Private capital into the energy field of the second difficulty is that there is no entry point quot Opinions quot in support of private capital quot and the state owned oil companies Cooperation To carry out oil and gas exploration and development quot But for the domestic block a state owned enterprises do not lack technology and no shortage of money no power and private enterprise cooperation As for the international block the host government in order to get more support state owned enterprises are more willing and local energy companies private companies have no advantage br br Private capital into the energy field of the third difficulty is the lack of pricing power and bargaining power quot Opinions quot clear quot to support construction of private capital shares of crude oil natural gas refined oil storage and transportation and pipeline transportation facilities and networks quot In this regard the experts say to natural gas storage device for example to build a natural gas storage tank a one time investment in a lot of money but did not block domestic exploration and development rights gas installation is completed private enterprises will have to purchase natural gas to the state owned enterprises In the monopoly market structure the private enterprises have little bargaining power br br For users the price of natural gas pricing of goods belonging to the Government private companies can not arbitrarily pass through price increases the cost Thus caught in the state owned enterprises and private gas enterprises between users often in a very awkward position br br However Fortunately under the relevant departments including natural gas resource price reform is expected to speed private capital participation in oiland gas development in the quot ceiling quot is about to loose br br Industry said that if the above three problems can be solved step by step quot to encourage private capital participation in oil and gas development quot will be truly implemented ')

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