Shortage of oil
Oil has always been the fuse of wars time and time again, and now the price of oil is extremely high. It has gone up a lot this year. The United States is going to attack Iraq again in order to seize some "free oil."
What problems does China’s oil industry face? Our country is large, so of course the proportion of oil used daily is also relatively large. The price level shows that this substance is beginning to face insulation.
The starting price for taxis I used to go out was 5 yuan, but now it has increased to 10 yuan. In comparison, I can't help but shudder. This is not yet in the city, I am in the oil field. What does this mean? Oil is as valuable as gold, which further proves its nickname of black gold.
On several occasions, the oil supplied by the oil field was not enough, so we had to go to other areas to purchase it. Refining oil is a very cumbersome process. How can we supply the entire region if we don't even have enough to supply ourselves?
The shortage of oil has caused cars to become unusable and many factories to shut down. Economic problems have also stagnated accordingly. The economy represents the strength or weakness of a country.
So when extracting oil, we must use the most delicate techniques to extract all the oil and prevent residual oil from appearing in the formation.
Our country cannot always rely on imports to maintain its own supply. Now our country is constantly using new technologies to mine, whether on land or in the ocean, and has made good results.
Recently, international oil prices have repeatedly hit new highs. On Friday, international oil futures exceeded the $66 mark. Although the surge in oil prices contains bubbles speculated by speculators, the tight supply and demand will be an intrinsic factor in the long-term high oil prices. my country's price adjustments to refined oil products have always lagged behind changes in international oil prices. The continued rise in oil prices means that the price of refined oil products, which has been raised several times this year, still faces pressure to increase prices.
The high oil fever has also had different impacts on various sectors and individual stocks of the A-share market, which is currently in the recovery stage. Its position in the entire industrial chain and its ability to pass on costs have become important factors affecting the operating efficiency of the industry and enterprises. The oil mining industry has benefited most from the rise in oil prices. Some large fuel consumption and transportation companies have been most directly affected. Processing and manufacturing companies that use natural oil and its primary raw materials as their main raw materials have been greatly affected. Primary crude oil products Production costs in industries such as plastic products, chemical fiber manufacturing and rubber products, which are the main raw materials, have generally risen, bringing greater cost pressure.
High oil prices are generally not conducive to the overall operation of the economy, but the high prosperity of the oil industry has also brought good development opportunities to companies that are upstream in the industrial chain and have strong cost-passing capabilities. When it comes to rising oil prices and short supply, everyone pays more attention to the oil-consuming industry or related raw material industries. In fact, the supply of oil exceeds demand, which has also brought vitality to the oil exploration and production sector and related service industries. In the context of long-term high oil prices, investors can pay attention to the following stocks.
Sinopec (600028): Sinopec is the most eye-catching large-cap index stock in this market so far. The strength of this stock is an important fulcrum for this rebound. As a leading stock in the petrochemical industry, the company has excellent performance and good growth potential. Earnings per share were 0.372 yuan in 2004 and 0.104 yuan in the first quarter of 2005. The company's current dynamic price-earnings ratio is about 10 times, which is still low. Recently, international oil prices have hit record highs repeatedly, and domestic refined oil prices have increased several times, which indicates that the company's performance growth in 2005 may exceed expectations. The integration and reorganization of the petrochemical system implemented in recent years will also support the company's further development. The non-tradable shares of this stock account for 77.42% of the total share capital, which means that state-owned shareholders can form relatively high compensation for tradable shareholders while losing a small shareholding ratio.
Yangzi Petrochemical (000866): Yangzi Petrochemical, with a capital of 350 million, can only be considered a small-cap stock among petrochemical stocks. But it is the most important high-quality asset of Sinopec. The stock's earnings per share in the first quarter of 2005 reached 0.563 yuan, and its current price-to-earnings ratio is much lower than that of Sinopec. The rise in oil prices allows petrochemical companies in the upstream of crude oil processing to basically pass on the increased costs caused by rising crude oil to downstream companies by raising the price of petroleum products. Therefore, it can still benefit from high oil prices as a whole.
Offshore Oil Engineering (600583): The company is a core enterprise in my country's offshore oil engineering industry. Its performance has grown steadily and it is one of the long-term lock-up targets of institutions. In recent years, my country's oil reserves have been insufficiently prepared for replacement. Old onshore oil fields are in a critical state of stable production or have begun to enter an overall decline stage, while offshore oil production continues to develop. The company's market share is extremely high. The continuous growth of energy demand has brought it sufficient project reserves and considerable profit prospects, which has brought significant opportunities to the development of the company's main business. The continuous improvement of technical level is the improvement of offshore oil engineering. The core of the competitiveness and profitability of the main business.
China Shipping Development (600026): The increase in oil prices is not good for aviation, highway and other transportation industries, but it is good for shipping companies that transport oil. China Shipping Development's revenue mainly comes from oil product transportation and dry bulk cargo transportation, mainly coal. Oil transportation is the pillar business of China Shipping Development.
In the first half of 2005, domestic crude oil demand was strong and domestic trade crude oil and refined oil products were abundant. The company completed an oil transportation turnover of 35.82 billion tons of nautical miles in the first half of the year, a year-on-year increase of 35.7%; it achieved transportation revenue of 2.346 billion yuan, a year-on-year increase of 28.8%. Net profit increased by nearly 80% over the same period. However, adjustments to the overall prosperity of the shipping industry may affect the company's future growth.
Jiangzuan Co., Ltd. (000852): A listed company under the Sinopec Group, it has unique advantages in oil drill bits, and its market share has remained above 60% for a long time. Its leading product, roller drill bits, is an important project in the drilling operations of various oil fields in my country's petroleum industry. In the past two years, with the surge in international oil prices, the prosperity of my country's petroleum industry has been promoted. Various oil exploration companies have increased their investment in oil. Exploration investment, and oil drill bits such as cone drill bits are consumables and cannot be reused. Therefore, the increase in domestic oil exploration investment has directly increased the product sales of Jiangzuan Co., Ltd.