Over past year, global recession has made demand for crude oil and natural decreasing; interest rates and cost inflation are low. As results, large integrated oil companies and those operating in related sectors experienced record profitability and cash flows, then are facing uncertain perspective.
In China, due to global recession, declining demand and floating oil prices, although China O&G industry’s revenue grew 23% in 2008, however profit down 10% than 2007, especially refinery sector had a loss of RMB149 billion, against RMB11 billion profit in 2007. CNPC , Sinopec, and CNOOC had combined profits 31% drop. The government has launched a petrochemical stimulus package, on pricing mechanism reform, refinery capability enlarging, coal-chemical development constrain, and enhancing enterprise governance and improving risk control skills.
China's oil consumption reached record 390 Mtons in 2008, increased 7%. Among them 52% of oil supply from abroad. In the other hand, the global oil and gas market has been shaped to a buyer’s market. CNPC , Sinopec, and CNOOC's outbound investment gets more active given better M&A circumstance and government back.
Through our member firms, Deloitte helps companies address many of these challenges by providing a range of services to companies in all segments of the oil and gas industry. We have significantly strengthened our global practice recently by adding hundreds of energy-focused professionals around the world.
We provide ongoing services to 50 percent of the world's largest oil and gas companies. In addition, our commitment to the industry includes research and analysis of industry issues and trends as well as participation in events and conferences where industry leaders share their insights on trends and issues.
In China, we have been serving all Chinese national oil and gas majors and most of international giants in China, cross audit, tax, management consulting, financial advisory and risk management.