Recently announced plans for China’s oil and gas industry
State-owned firms, such as the China National Petroleum Corp (CNPC) or the China Petrochemical Corp (Sinopec) dominate China’s oil and gas sector. However, a recently announced reform calls for the participation of enterprises in the prospect and development of oil and gas resources, as China Daily reported. More, in 2015 President Xi Jinping (習近平) emphasized the nation’s goal to improve the country’s sustainability, and addressed among others, the efficient utilization of resources and sustainable energy. According to research conducted by Daxue Consulting, Biodiesel production, for instance, is expecting growth.
Daxue’s client in the industry wants to hop on China’s sustainability train
Daxue Consulting’s client sought to gain profound insights into the oil refining industry in China to develop its production of renewable products further. Therefore, the client approached our research team to assess the market situation including relevant market players, supply chain elements, as well as a future outlook for the upcoming years.
Daxue Consulting obtained unique strategic data about the oil refining industry in China
Daxue Consulting prepared a tailor-made project for the client to fulfill all requirements. As a first step, the research team carried out an extensive desk research to gather secondary data about the oil refining industry in China. It included information about key players, the industry size, regulatory issues, and the analysis of new potential supply chain elements considering aspects such as sustainability, quality control, or logistics.
The consultant team additionally performed in-depth interviews to support and cross-check the gathered data with additional qualitative information which is of particular importance in industrial market research. Daxue Consulting, therefore, utilized the so-called funnel strategy to be able to get the most appropriate experts, local professionals, industry insiders, public authorities and associations relevant for the face-to-face interviews. This step helped the research team to gain an understanding about the specificities of the oil refining industry in China to be able to provide our client with the necessary strategic information.
As to obtain additional data, which the team could not gain through the first two phases of the research, Daxue Consulting executed so-called smart calls. These enabled the research team to gain first-hand data from local companies including insider information about processes, methods, or pricing, for instance. The consultants collected such data from trading and distribution businesses to refining plants, for example.
The final outcome of the project
The research team provided the client with a comprehensive final report. Clement Mougenot, Head of Research at Daxue Consulting, explained: “We market sized, assessed the potential of key oil source segments, defined the ideal sourcing strategy, recommended on priority actions, highlighted red flags and potential challenges, and forecasted market trends.” The consultants assisted the client with strategic decisions, also considering the regulations and legal framework, to enable a smooth development in the oil refining industry in China.