Before understanding Sinopec, we must first understand the investment logic of the petroleum processing industry, otherwise it is equivalent to a blind man touching an elephant.
Petroleum processing is an important industry in our country, which is closely related to economic development and plays a key supporting role in stabilizing the economy, employment and growth.
First of all, everyone needs to understand what exactly does the petroleum processing industry do? Petroleum processing generally refers to the rough processing of oil, such as dehydration, desalination and other preliminary treatments, which rarely involve chemical reactions, and are generally physical treatments, and this kind of industry is generally near the oil-producing area.
As an important part of oil production, petroleum processing is also one of the core pillar industries in China.
The following is an analysis of the investment logic of the petroleum processing sector from the relationship between supply and demand and the market environment:
From the point of view of supply and demand:
The supply and demand pattern is still the main factor affecting the oil industry, with commodity attributes and financial attributes, and has a role in influencing the oil processing industry. In the long run, the main influencing factors on the demand side are the global economic growth rate, and the main influencing factors on the supply side are the production of OPEC+ and the production of shale oil in the United States. Global energy has been in a state of relative shortage for a long time, which determines the stable and positive development pattern of the petroleum processing industry.
From the perspective of the market environment:
Petroleum processing products cover a wide area, capital and technology intensive, and have a high degree of industrial relevance, which plays an important role in stabilizing economic growth, improving people's lives, and ensuring national defense and security. The national economic development is of great significance to promote the sustainable and healthy development of the petroleum processing industry, the product refinement rate has been greatly improved, and the quality and efficiency of the development of the industry have been significantly enhanced.
To sum up, benefiting from the long-term global energy shortage, the prosperity of the petroleum processing industry will continue to rise in the future.