Charles Chaw, producer of 6 episodes "Inside China Next Powerhouse", presents the opportunities of Northeastern China. In this Part 2 of the last episode: Besides oil, Daqing also has plenty of natural gas resource. With the depleting oil resource, Daqing Oil Field has paid more attention to gas exploration. They calculate that by increasing gas production, their combined oil and gas output can be maintained at 40 million tones till 2020. Nevertheless, like all aging oil fields in the world, it will get more and more difficult to extract oil as time goes by. Something more needs to be done. For a major oil city, naturally, the first thought is to strengthen the related petrochemical industry.
Crude oil found in Daqing, typically has a low sulfuric content. This makes Daqing's crude more suitable for process into a wide variety of petrochemical products. Daqing aims to be China's largest petrochemical industry center. Its refineries are able to distill more than ten major product categories, with over 160 varieties. Examples of such products include, chemical fertilizers, acrylic fibers, lubricants and even aviation kerosene for both China's air force and overseas exports.
Daqing's economy is heavily built around the oil industry and the government cannot just rely on the petrochemical industry alone. The clock is ticking, and Daqing knows that it has to reinvent itself. In 1992 the Daqing government set up the Daqing High Technology Development Zone, to spearhead the city's move away from oil. Companies that base their operations in the development zone can expect a wide range of policy support, like tax incentives and financial support. This high -- tech development zone looks set a win the hearts of the investors.
link suggested: http://www.youtube.com/watch?v=xfyn7JxNXs0
