There are abundant proved oil reserves in Iraq, and Chinese companies are looking for petroleum business opportunities in Iraq. Rich experience, strong technical support and good reputation enable Chinese companies to bid for power in Iraqi petroleum market. There is much potential to find big oil reserves in Iraq, and developing Iraqi petroleum market has increased Chinese companies’ competition strength.

With the rapid growth of coal chemical industry in China, the selection and application of Air Separation Unit (ASU) became very important. As the core unit in coal chemical industry, ASU will greatly impact the engineering construction and operation/production of coal chemical business. In this paper, major suppliers of ASU at home and abroad were reviewed, and the major supplying status of ASU in China was introduced. The ASUs in operation of SINOPEC were listed and discussed. On this basis, some suggestions of ASU selection strategies were provided on localization, standardization and operation methods.

Ever since 2005, the US^’ shale oil and gas production growth and effective adjustment of domestic energy consumption mix have made it possible for the country to be less dependent upon imported energy and gain energy independence. What should we learn from it to guarantee energy supply security? This paper tried to answer the question.

Growth rate of oil demand rose again in China in the first half of 2015. Demand for oil products went on differentiating, and the demand growth of most products sped up. Growth rate of oil production rose again, oil imports increased rapidly, and external dependence of crude oil and oil broke through 60% separately. The State adjusted the prices of gasoline and diesel timely and frequently, based on pricing mechanism. Price hike was higher than reduction. Oil market got weak, yet more stable. China increased the pace of reforms in marketization. In the second half, oil demand will increase continuously but with lower growth rate, oil production will rise more slowly, imports of crude oil and oil will keep on rising rapidly, gasoline and kerosene as well as diesel will witness a net import, and the market of gasoline, kerosene and diesel will be more stable.

China natural gas industry is at a turning point. Growth of mid-long term natural gas consumption may maintain at about 10%, supply is sufficient or even “over-sufficient”, natural gas price will be determined by competition, oil and gas pipeline facilities will be opened fairly, and private enterprises will play important roles in natural gas exploration, development, storage, transportation, and trade. It can been foreseen that China natural gas industry is very likely to take a turn in next 10 years, and a modern natural gas market with consumption about 500 billion cubic meters will come into being characterized by complete supervision system, diversified market, steady supply, fairly opened pipelines, transparent trading mechanism, and competitive prices.

Regarding the abundant reserves in China, unconventional oil and gas resources has great potential in exploration and development, and may be the significant complement to conventional oil and gas resources. Based on the summary of the reservoir potential and current situation of exploration and development of unconventional oil and gas resources, such as coalbed methane (CBM), shale gas and oil shale, we analyzed the incentive policies proposed to promote the development of unconventional oil and gas industry, including industrial planning, resource management and related tax policy. These policies played an important role in promoting the exploration, development and utilization of unconventional oil and gas resources.

Petroleum industry plays an important role in both the Chinese and Russian economy.Petroleum cooperation between the two countries continue to accelerate since China opening wider to the outside world, and Chinese oil companies have increased their presence in Russia. Sino–Russia joint-ventures, oil & gas trade has progressed smoothly, there is a better future for cooperation in oil & gas development in Russian Far Eastern region. Chinese and Russian companies will continue to benefit from collaboration in petroleum industry.

China natural gas industry is at a turning point. Growth of mid-long term natural gas consumption may maintain at about 10%, supply is sufficient or even ^“over-sufficient^”, natural gas price will be determined by competition, oil and gas pipeline facilities will be opened fairly, and private enterprises will play important roles in natural gas exploration, development, storage, transportation, and trade. It can been foreseen that China natural gas industry is very likely to take a turn in next 10 years, and a modern natural gas market with consumption about 500 billion cubic meters will come into being characterized by complete supervision system, diversified market, steady supply, fairly opened pipelines, transparent trading mechanism, and competitive prices.

Chinese economy has turned from rapid development into new normal. With economic transition, demand for oil and gas decreases as well. Consumed diesel-gasoline ratio keeps declining, and diesel export increases considerably. Gas demand grows at medium speed, and supply meets demand in general. Alternative energy dominated by gas and electricity will develop faster. As crude oil import right is gradually liberalized, domestic oil market structure will be changed. Oil price drop brings the best opportunity for oil and gas market reform, and environmental protection becomes main force boosting natural gas development.

Drilling crews of Sinopec have encountered a series of troubles when drilling a formation called kazhdumi of Yadavaran oilfield, Iran in the last few years. The formation is buried in the depth from 3300m to 3500m, mainly including limestone, muddy limestone and some bituminous shale. Many microfissures exist in the formation and the equivalent density of formation pore pressure ranged from 1.19g/cm³ to 1.59g/cm³. Asphalt or heavy oil kicks occurred in drilling three wells in one and a half years, which contaminated the drilling fluid and made well killing difficult due to the kicks and lost circulation in open hole. Gas and hydrogen sulfide (the concentration is up to 40000ppm) were present in the wells, and finally two wells were completely abandoned and one partially lost, which frustrated the drilling engineering seriously. By analyzing the data of the drilled wells, the paper summarized the causes of the troubles, and put forward suggestions and conclusions that can serve as reference and guideline for drilling well in this area in the future.

China is abandant in shale gas resources. Encouraged by the successful development of shale gas resources in the U. S., China began its shale gas research and exploration activity about 10 years ago. This paper briefed the history, state quo and future of shale gas development in the country. Factors that constrain the shale gas industry there include technology limitations, attitude of the government, environmental concerns and etc. The future of the shale gas industry in China depends heavily on how well these issues are dealt.

International oil keeps low-price running after crash, and China deepens reform domestically. Using this opportunity, China lays the same emphasis on investment and trade, on onshore and offshore transportation, gives full play to the important role of market in resource distribution, speeds up oil and gas system reform to guarantee clean, efficient, safe and steady energy supply and long-term demand for energy. We systematically and thoroughly established legal system for oil and gas domains, reformed management system for energy domain, reformed regulatory domain, built modern market entity and multi-level market system, and improved oil and gas pricing mechanism, etc.