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San Francisco, CA (PRWEB) October 13, 2012
Revenue for the Oil Wholesale industry in China is estimated at $866.8 billion in 2012. Over the past five years, industry revenue has been growing at an annualized rate of 19.1%, says IBISWorld. China has become one of the world's leading oil importers, especially for crude oil. The proportion of imports in domestic demand has been slowly increasing, suggesting an ascending reliance on foreign oil.
Oil serves as a national strategic energy and its business performance is under the strict control of the government. Access to crude oil sales and refined oil wholesale operations must be approved by the Commerce department and currently, certificates are extremely limited to several state-owned oil companies like the Sinopec Group, China National Petroleum Corporation, and China National Offshore Oil Corporation. In 2007, the Commerce department began to open the Oil Wholesale industry to private and foreign capital. Although the approval procedure remains strict, the industry did see a decline in concentration level with newcomers like ExxonMobil, which joined the industry by setting up joint ventures with Sinopec. The Commerce department has continued to issue qualification certificates for crude oil and refined oil wholesalers in China in 2012.
Over the next five years, regulations on this energy-intensive Oil Wholesale industry will be further reinforced and downstream demand for the industry will see a slow-down in line with that of China's GDP, says IBISWorld. However, demand from China's transportation sectors is projected to grow with the expansion of railway and airline networks throughout the nation.