The modern world needs energy in order to continue running the way that it does.
Without a fuel source, energy can’t be utilized. Few fuel sources in the world are more popular than natural gas and crude oil; these happen to be the same fuel sources Sinopec specializes in.
Technically named China Petrochemical Corporation (but almost always referred to as Sinopec), this brand is responsible for managing some of China’s most lucrative resources.
Every Aspect of The Industry
There are a number of different phases associated with the gas and chemical industry. These include the actual exploration and production of the products, the refining process, marketing and distributing the refined products, chemicals created out of byproducts, and a number of other factors.
Sinopec handles all of these components within its single umbrella. Obviously, this means that Sinopex is a rather massive company, since so many different departments and employees are necessary to effectively run these operations.
A National Endeavour
Somewhat unsurprisingly considering China’s relatively recent rise to economic prowess, Sinopec is a wholly modern company, first established by China in 1998. This helps to explain the holistic nature of Sinopec’s function—they’re a sort of one stop shop for the oil industry.
Since its founding, Sinopec has grown rapidly. In the 21 years that have followed Sinopec’s advent, the company has acquired several competitors and bought significant shares in other companies.
Today, Sinopec is the largest oil refining company in the entire world, and their other divisions rank among the upper echelons of the industry as well. Producing crude oil, natural gas, a number of chemicals, and even biofuels, it’s not hard to see how Sinopec continues to grow despite being such a young company.
It’s no stretch of the imagination to say the energy industry is a crowded one. However, there’s an important distinction to be made between Sinopec and its competitors, like Earthstone and Rice Energy.
Sinopec is state owned, so the profits generated by the company return to the government. This means that Sinopec has vastly more resources than its (often older) competitors, but it also means that the brand is subject to fluctuations that private companies can avoid.
Corruption and Conditions
Being that it is owned by the state, Sinopec doesn’t have much trouble maintaining visibility in Asia. All the same, one segment of the company is dedicated specifically to marketing, though investors haven’t shown much interest in this pursuit.
Good press might be precisely what Sinopec needs, though, as two of the company’s top executives were suspended in 2018 amid a flurry of speculation. It’s unclear whether the suspensions arose out of misconduct, and Sinopec declined to provide more insight.
All the same, there’s no denying Sinopec’s sharp success. Currently, the company holds the number 2 spot on the Fortune Global 500, making it an undeniably major player in the global market.
Despite being young, it’s clear that Sinopec isn’t going anywhere, and is likely to only become more powerful from here on out.