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Since November 1, 2007, after the National Development and Reform Commission raised the price of refined oil by nearly 10% (500 yuan per ton), the two giants of Chinese oil companies, Sinopec and PetroChina, are planning to apply for government subsidies. The most profitable companies in China have to raise prices and subsidize them. Some commentators said: “There is no more ironic thing than this.â€
If we want to find something ironic again, we must say that oil is exported and imported.
Because the two companies are most willing to get in touch with international standards, first give them a look at Argentina’s track. On January 7, the Argentine government announced that in order to ease the shortage of supply of refined oil in the domestic market and increase prices, the export of refined oil to foreign countries is prohibited. In November last year, the Argentine government raised the export tax on refined oil from 5% to 35% and the crude oil export tax from 45% to 60%. A domestic crude oil price is about 42 US dollars per barrel, because the domestic market is relatively low gasoline prices, oil companies have to rely on exports to make up for losses.
Limited to the limited information, only know that China's crude oil export tax is 5%, refined oil is not very clear. With such low export tariffs, if domestic oil prices are low, China’s oil giants will of course be willing to export oil to make money instead of giving priority to satisfying domestic market demand. In the first half of last year, China exported 1.82 million tons of crude oil and 7.91 million tons of refined oil. Estimates of the number of crude oil and refined oil exports throughout the year will soon be announced by the Customs. Of course, in the second half of last year, when the oil shortage occurred in the Pearl River Delta and the Central Plains, the two giants also increased their oil imports.
Just a few days after a good day, this Wednesday, as a major diesel supplier, Sinopec related sources and informed sources, due to the market supply and demand has stabilized, has reduced the amount of diesel imports in January of this year, February may be Suspended diesel imports.
The Argentine government has announced that it will stop exporting oil, and Sinopec plans to suspend diesel imports, perhaps starting from the actual situation in the country. However, I am very skeptical that Sinopec’s intention to suspend imports will set aside for the next oil shortage.
In recent years, the domestic market has been suffering from oil shortages almost every year, although there are reasons why the international oil prices are rising. However, it cannot be ruled out that the oil giant’s work with responsibility for safeguarding supply is unplanned. He waits until the emergence of an oil shortage to hold an emergency meeting, increase imports, reduce exports, and increase production of horsepower.
I remember when the oil price was 70-80 US dollars a barrel the previous year. In my article on the fuel tax reform, I expressed this view: Buying oil is not buying Chinese cabbage, and buying more is easy to rot. This thing is more likely to be saved and can be used slowly. We have 1.5 trillion US dollars of foreign exchange, devaluation every day. If you bought 10 billion U.S. dollars in the previous year and bought oil, it would be no problem to make a net profit of around 20 U.S. dollars a barrel this year. This is more cost-effective than investing in Blackstone. The first is to reduce the loss of the depreciation of the dollar; the second is to buy a barrel of $ 80 to sell it for $ 100 a barrel to make a large net profit; third is to save the money now spent for a hundred dollars to buy more money, and earn One stroke. Three money is a decision-making thing. For the country, there is nothing more than building a little more storage tanks. We do not lack steel. Our own underground oil will be mined for a little while, and it will not go abroad and be reserved for future generations!
Anyway, this principle is incommensurable with Sinopec and China Petroleum. They will only plan on a monthly basis, and even the quarterly plan and the annual plan will not do well. What they engage in is neither a planned economy nor a market economy. It is a monopolistic economy that requires price increases and subsidies. Don't look at them as the most profitable companies. Don't look at their ability to waste oil, but they do not even have basic business acumen. It is no wonder that Buffett wants to throw away all the Sinopec stocks. The old man thinks that it will take too long for monopolies to influence IQ.