As a priority for new projects and demonstration missions during the “13th five-year” period, the iraq plough energy kerosene project has recently taken the initiative to shut down and has given rise to great industry interest. The iteb unit announcement indicates that the main reasons for the suspension of the project were the high cost of coal oil, high uncertainty in crude oil prices and significant uncertainty in the cost of taxes and fees. None of these problems can be solved by the coal industry itself。
For example, the coal oil industry does not currently use all coal as a feedstock. The ita b unit announced that the original coal prices were constantly high and that the original coal cost of the company's existing coal chemical projects had risen from 35 per cent of total costs in 2018 to 60 per cent in 2020. Only when technological advances in the industry are taken into account and all coal varieties can be used as raw materials for coal oil can the coal oil industry have greater control over the cost of raw materials。
Uncertainty about crude oil prices is a common problem in the world's crude oil industry, not only for the coal oil industry, but also for oil refineries based on crude oil, such as chinese oil and chinese petrochemicals。
In terms of tax and excise costs, the issue of excise tax relief relates to the oil, petrochemical and renewable energy industries, which are associated with one another and therefore the fiscal sector is more cautious. At the same time, the risk of stimulating excessive expansion of production capacity is embedded in the desire to maintain a reasonable margin of profit for coal-producing enterprises by relying solely on excise tax relief. A rapid increase in production would lead to excessive excise tax relief, affecting fiscal security and, in turn, to a phenomenon similar to that of the year in which the wind and light were lost。
As a result, there is limited scope for the coal industry itself to influence the control of coal costs, the elimination of uncertainty in crude oil prices and appropriate tax and tariff reductions. Addressing the current plight of the coal oil industry still requires a strategic role based on finding the right way to enter the market from its own products and enhancing the viability of the industry itself。
The view was expressed that crude oil refining was more cost-effective than coal-based oil. The reality is questionable. This conclusion is universal in oil fields with low water content and well depths above 2,200 metres. However, for the winning oil fields in the eastern part of the country, the nunchu oil fields, the qiang oil fields, etc., water-bearing rates are generally high and the cost of oil extraction is rising rapidly。
It can be said that the suspension of the oil ploughing project in iraq has had a significant impact on our energy security. Statistics show that, as of the first half of 2022, eight coal oil projects had been produced, with a total capacity of 8. 23 million tons per year, but only 3. 572 million tons. Overall progress is lagging against the planned target of 13 million tons per year by 2020 set out in the model “135” plan for the deep processing industry of coal, published by the national energy agency. At the same time, there has been considerable uncertainty about the establishment of strategic bases for coal and gas production and the establishment of a production capacity and technology reserve, as proposed in the 102 major projects of the 14th five-year plan published by the national commission for development and development, namely, the sound promotion of the construction of strategic bases for coal and gas production in ordos, xinjiang, xinjiang, xinjiang and xinjiang khami. Therefore, we must treat the coal oil industry with scientific caution。
The coal oil industry must be able to survive in the market before it can play its strategic role. The main contradiction facing the current coal oil project is that, although it is a strategic project affecting energy security, it is currently difficult to survive in a market economy, and the project cannot play its strategic role. In other words, the strategic role of survival cannot be fulfilled without a solution. Survival is a necessary condition for development。
As a matter of fact, our country is now at an international lead in the level of direct and indirect liquefied coal, and some major projects have achieved “stable and robust” operations, with sustained optimization of energy consumption and water consumption emissions. Technological progress and industrial upgrading are still needed, taking into account the actual situation in the country. So, where's the way forward
Currently, the diesel component of coal-based filtration oils meets the requirements of the gb/t29720-2013 coal-based filtration oils, which can be sold as intermediates, but does not meet the requirements of the gb19147 vehicle diesel and the gjb3075 military diesel code and cannot be sold as finished oils. Coal diesel can only be sold as liquid wax under gb/t32066-2015。
However, the integration of coal-based oil with biomass energy can effectively address low oil density and improve indicators such as oil viscosity, flashpoints, distillation, etc., not only to meet the requirements of diesel fuel for vehicles, but also to expand to tanks, ships, etc. Biodiesel is reconciled with coal-based fito synthetic oils, and b5 diesel, which meets the requirements of " gb25199 b5 diesel " , is available at 6 labels of no more than 0°c, -10°c, -20°c, -35°c, -50°c, plus 20, 35 and 503 diesel fuel. Of particular note is the relative advantage of fatty-acid diesel resistance in this regard compared to biodiesel。
Thus, the combination of coal oil and bioenergy and the entry of b5 diesel (gb25199) into the market can effectively address the market entry of coal oil as a finished oil and the survival of the coal oil industry. On that basis, the strategic role of the coal oil industry could be further developed and the current strategic role of the coal oil industry in the long run could be radically changed, but the present dilemma is difficult. To do so, however, three issues still need to be addressed: the first is to increase the production of biodiesel from ditch oil; the second is to guarantee the production of raw coal extraction and coal oil; and the third is to promote the integration of coal oil with biodiesel into b5 diesel and access to the market for finished oil。
To that end, organizational development must be strengthened. According to the existing organizational framework, on the one hand, coal oil enterprises do not have direct access to the market for finished oil, and there is no practical experience with the sale of finished oil, particularly in the construction of gas stations. Coal-based oil products have not built up brand credibility and influence among consumers, such as those created by the petroleum and petrochemical industries. On the other hand, the coal oil industry has not yet adapted to the capacity of trenches to collect, store, negotiate prices and produce biodiesel, and the coal oil industry is only in the middle of these two links。
Oil, petrochemical companies and local state-owned oil and petrochemical companies have no advantage in biodiesel. Historically, oil and petrochemical companies were involved in the biodiesel industry, but did not occupy a privileged position. Currently, the biodiesel industry is dominated by private enterprises. Under these circumstances, the existing oil, petrochemical and coal-based oil companies are unable to do so well. There is therefore a need to establish mixed ownership among existing oil, petrochemical or coal oil companies in order to achieve the “one company of three” objectives: it is linked to coal oil companies and to oil and biodiesel enterprises, while promoting the integration of coal oil with bioenergy into the market for finished oils directly by b5 diesel。
As long as the entire industrial chain is accessible, coal oil can achieve the full range of strategic planning from coal to finished oil. In fact, when the coal-based oil industry was initially programmed, the ultimate goal was to market coal as “finished oil” rather than as “intermediate products”. The coal oil industry has been developing for many years and has not yet fully achieved this strategic objective. The time has come to achieve that strategic objective. Using coal oil as a breakthrough point to achieve mixed ownership reforms requires not only managerial optimization, but also, and more importantly, industry-wide optimization, promoting technological advancement and upgrading of the existing coal oil industry, enhancing its market viability and furthering its strategic role。
(the author is the deputy director of the specialized oil products professional committee of the chinese federation of petroleum and chemical industries; cheng jianying, wang guiqing and liu zhou are also contributing to this paper
