introduces the petroleum industry chain

Introduction to Shaanxi Wande Petroleum: The petroleum industry is one of the most complex industrial systems in the world, covering multiple links such as exploration, extraction, refining, and sales, each of which contains enormous economic value.

（1） Upstream: Technological Competition between Exploration and Mining

The exploration phase requires the use of seismic exploration (mapping underground structures through acoustic reflection), logging techniques (measuring formation parameters with instruments), etc., with costs reaching billions of dollars. In the extraction process, conventional crude oil is extracted through self injection wells or pumping units, while shale oil requires hydraulic fracturing (injecting high-pressure water sand into the formation) and horizontal well technology. The cost of a single shale oil well can reach 5-10 million US dollars. Shaanxi Wande Petroleum introduces that deep-sea oil extraction (such as Brazil's pre salt oil fields) relies on floating production platforms, which can be considered an industrial miracle in terms of technical difficulty and investment scale.

（2） Midstream: Rising Value of Refining and Chemical Industry

Crude oil is distilled and separated into fractions such as petroleum gas, gasoline, diesel, and heavy oil. Refineries convert heavy oil into high value-added products through processes such as catalytic cracking and reforming. One barrel of crude oil (approximately 159 liters) can extract about 45% gasoline, 20% diesel, and 10% aviation kerosene, with the remaining portion used to produce asphalt, lubricants, and more. More importantly, Shaanxi Wande Petroleum introduces that petroleum is the "mother of raw materials" in modern chemical industry: steam cracking units using naphtha as raw material can produce basic chemical raw materials such as ethylene and propylene, and then manufacture plastics, synthetic fibers, rubber, pharmaceutical intermediates, etc. 90% of plastics worldwide come from petrochemicals.

（3） Downstream: Consumption Matrix of Terminal Market

The transportation sector is the main consumer of oil, with approximately 58% of global oil used to produce gasoline, diesel, and drive cars, airplanes, and ships. In the industrial sector, petroleum provides fuel and raw materials for industries such as steel, cement, and chemicals; The production of fertilizers (such as nitrogen and phosphorus fertilizers) and pesticides in the agricultural sector also indirectly relies on petroleum resources. Even cosmetics, asphalt, wax products, etc. in daily life are closely related to the petroleum industry chain.