Why China's oil prices have been rising

Oil prices are rising

1.
The world's major oil producers are the Middle East, Russia, and the United States, which owns most of the world's shale oil, due to the turmoil in the Middle East, Saudi Arabia has also announced a reduction in oil production, and Russia has also been subject to economic sanctions
by Western countries led by the United States.
International oil prices are manipulated by the United States, and China has no pricing power
.
On the contrary, China is now increasingly
dependent on oil.

2.
Oil taxes are too high, including value-added tax, consumption tax, urban construction tax, etc
.
On average, barrels of oil pay half the oil tax
.
To a large extent, the refining profitability of domestic refineries is not enough compared with developed countries, and the rise in refining costs has naturally increased
domestic oil prices.

3.
Low oil prices have seriously hit the new energy industry
.
For example, new energy vehicles, new energy vehicles themselves are higher than ordinary cars, if it is the price of oil, new energy vehicles will lose market value
.
Because there are many Chinese, it is wasteful
to use low oil prices.

Oil production

4.
The detailed description of China's oil price increase is as follows: China's automobile industry is developing rapidly, China's automobile sales are increasing day by day, according to published statistics show that by the end of 2017, China's motor vehicles owned 310 million vehicles, 217 million vehicles, drivers reached 385 million people, of which 342 million vehicle drivers
.
This has prompted our country to become a country on the ruts, as the primary driving force of vehicles comes from crude oil, and the price is constantly rising
.

5.
Oil also plays an important role in other industries

Oil, also known as crude oil, as a fossil fuel, can be used to make fuel and gasoline, and is one of the most important energy sources in the world, known as "industrial blood"
.
Because of its non-renewability, every drop of oil is precious
.

In addition, oil can also appear as chemical raw materials, such as nylon and synthetic fibers and rubber are processed from
petroleum.
The small reserves but wide range of uses are also an important reason why
oil has become a precious resource.

6.
Different regions have different oil reserves and extraction conditions

The top 5 countries in the world in terms of recoverable resources for shale gas technology are: China (36 trillion cubic meters, about 20%), the United States (24 trillion cubic meters, about 13%), Argentina, Mexico and South Africa
.
The areas with the largest shale gas reserves in China are the Sichuan Basin and the Tarim Basin
.
According to preliminary estimates, China's shale gas recoverable resources are about 36 trillion cubic meters, ranking first in the world, according to the current consumption of China, can be used for more than 300 years
.
The world's recoverable shale gas reserves are estimated to exceed 180 trillion cubic meters, but for me now it is difficult to mine, and the mining efficiency is even lower, blind mining will not only cause most of the waste but also exacerbate the possibility
of ecological and environmental damage.

Each country has different reserves of oil resources
due to differences in land area and geographical location.
Plains countries like the United States, and facing the sea on both sides, have abundant oil reserves, and the Middle East is known as a treasure trove of
oil.

Although our country's oil reserves are not as good as those of these countries, they are also very rich
.
In the last century, many colonists tried to dig up oil resources from our country for their own use, but because of the different geological forms, they ultimately failed to do so
.

7.
Affected by the epidemic, global oil production is limited

The rise in oil prices is not unique to our country, and many countries around the world are facing the helplessness
of rising oil prices.
Every time we talk about the topic of rising oil prices, many people miss the beginning of 2020
.
A sudden outbreak of outbreaks, quarantine of personnel, shutdown of factories, and suspension of vehicles
.
The global oil market has been profoundly affected, along with the decline in oil demand from various countries, triggering an instant plunge in international oil prices, especially the first time since WTI was listed that there were negative oil prices
.

Since May last year, OPEC+ has implemented the largest production cut in history, and oil production in many countries such as the United States and Canada has also experienced a sharp decline
.
With the gradual restart of economic development by countries around the world, international oil prices have rebounded
sharply.
China is in a period of rapid development, and many domestic industries are also facing transformation, which urgently needs sufficient oil as an energy supply
.