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With innovation-driven development, two subsidiaries of Kerui Petroleum awarded the title “National High...

News Time:2016.02.02       Traffic:

  Recently, we’ve heard from innocom.gov.cn and science and technology and finance departments of Shandong Province that 2015 List of National High-tech Enterprises of Shandong Province was released with more 700 enterprises from various sectors included. Two subsidiaries of Kerui Petroleum were in the list, rarely seen in the appraisal in Shandong Province. According to our knowledge, in order to become one of national high-tech enterprises, an enterprise must continuously conduct research and development and conversion of technological outcome and create own core intellectual properties of the enterprise within high-tech areas supported by the country. Therefore, it is very difficult and valuable for an enterprise to be accredited as a national high-tech enterprise. According to relevant responsible persons from Kerui Petroleum, Kerui annually invested 4% of its sales revenue into research and development. On the basis of enhanced internal capacity of research and development, Kerui Petroleum, while being encountered with the general situation of the industry, is actively building more cost-effective solutions for customers with respect to technological innovation and service value added. 

  Since the second half of 2014 with oil and gas sector depressed, a lot of internationally famous oilfield service companies and oilfield equipment manufacturers have suffered the market situation of cooperative merger and re-structuring. At that time, given that the entire industry was depressed in general situation, Kerui Petroleum, relying upon strong innovation capacity and global marketing service network, repeatedly won complete rig orders from Middle East customers and old oilfield re-exploitation and enhancement contracts in Latin American region. In addition, Kerui Petroleum also concluded strategic cooperation for natural gas energy with Middle Asian countries including Uzbekistan and achieved a series of exciting results including delivery of EPC Phase I and continuous building of Phase II for Pakistan. 

  When it comes to high-end oil and gas equipment area that Kerui Petroleum is involved in, in view of ceaseless focus on and investment in research and innovation, Kerui Petroleum has successively researched and developed complete set of enhancement equipment for radial well since the second half of 2014, making it the second enterprise that integrates research, development and manufacturing of drilling equipment and downhole tools with radial well drilling service in the world; it has also researched and developed 1200m3 50MPa and 1800m3 50MPa nitrogen production equipment, being the first domestic special operating equipment with greatest pressure for oilfield enhancement operations, of which successful creation means that domestic nitrogen production equipment formally enter the high-pressure era by crossing the line; the first 3000HP smart integrated desert quick-moving rig was successfully delivered to the customer in December 2015. Being the first equipment of same kind, such rig had many advantages and features, such as smart remote control, high-level integration and automation, including automatic connection and drain-down of drill pipe 9000m ultra-deep drilling in any geological environment. 

  In view of current socio-economic development, oil and gas, as the most fundamental energy source, is not only the one that cannot be replaced in short term, but also the core and essential energy source that is widely applied to all aspects of daily life in addition to fuel. Distributed energy utilization and new energy development will not impose a replacement effect on oil and gas in a short period. According to our observation on midday trade in New York on January 22, 2016, Brent Crude Oil increased by nearly USD 2.5, up 8+%. Following sharp rise of 7% yesterday, international oil price for today kept punching back and US Oil and Brent Crude Oil prices got back to USD 31 and kept the increasing trend. Until recently, WIT US Oil increased by up to 7.18%, up USD 2.12, closing at USD 31.54 per barrel; Brent Crude Oil increased by up to 8.43%, closing at USD 31.71 per barrel; rising oil price brought about the bounce of Russia ruble and exchange rate of USD to ruble declined by 5.8%, closing at 78.09, approaching the level of 78. This was strong bounce of energy market following continuous pressurizing in the cycle of one and a half year, and also a premonitory signal that the market approached the lowest point. Driven by oil and gas energy, global economy could not get rid of the driving force brought by oil and gas energy. Based on these considerations, Kerui Petroleum, while properly manufacturing oilfield equipment, was also eager to progress in innovation of oilfield service technology. Specifically, it has leading technology and outcome accumulation in many areas such as nitrogen generation and injection enhancement technology, research and development and customized production of special compressor, underwater high-end wellhead and special operating equipment for oilfield. In terms of talent import, development and continuous training, Kerui Petroleum has set up 16 technology research and development centers in Beijing, Shanghai, Singapore, Houston and Calgary with professional technical staff accounting for 50% of total staff. 

  According to our knowledge on January 21, 2016, Yasushi Kimura, President of Japan Petroleum Association and Chairman of Board of JX Holdings, the largest refinery in Japan, forecasted at a press conference regarding the trend of crude oil price that oil price would rise toward USD 40 per barrel from mid-year to the year end. With respect to current oil price of less than USD 30 per barrel, he indicated that “oil price is too low, possibly at the bottom”. What he said was Dubai Crude Oil Price as Asian crude oil market indicator. As for the reason for decreasing price, he indicated by virtue of an example that economic slowdown in emerging markets including China resulted in declining demand, together with excess supply in oil producers, but he said that “the market over-reacted”. Yasushi Kimura added that energy enterprises were cutting down investment in oilfield development, and “the demand gap would be definitely eliminated gradually.” Actually, as for deeper and broader reasons, when oil price fluctuates, there must be troughs and peaks and mixing of various reasons including political, economic and anti-terrorism. Persisting low-price trend violates general rule of energy market and does not meet the progress trend of socio-economic development. Though it is impossible for quick bounce in a short term, we believe that energy market will gradually return to its healthy function following one and a half year’s low price level. 

  However, it is undoubted that clean energy and low-carbon style have become a popular choice for life value criteria. The direction for oil and gas energy enterprises to keep sustained exploration will be how to acquire and use energy more efficiently. Following more than a decade years of development, Chinese private enterprises represented by Kerui Petroleum have been equipped with details and accumulation for technological innovation. Though there is a long way to explore and move forward, innovation is a eternal topic. The title National High-tech Enterprise is a recognition and encouragement for all candidates for such title. Represented by Kerui Petroleum, Chinese private enterprises are required to devote themselves to innovation and exploration and confront the new trend of oil and gas prices calmly, thereby facilitating the innovation to the much deeper area.