Abstract:

Petroleum is of strategic significance to China’s economic growth. Opening up oil import right will promote the restructuring of China’s oil industry，improve oil refining efficiency and lower refining costs. The feasibility to open up oil import right is based on the following factors: mature global oil trade system，international oil pricing mechanism，and adequate technological competence of private oil refineries. Opening up crude oil import also contributes to the reform of administration system of China’s oil industry，and to getting private oil refineries out of the trouble of material shortage. In this paper，we suggest that the following should be ensured when open up oil import right: raise the standard for enterprise qualification for refining import oil，set limits for the range of import oil used by private enterprises，and strengthen supervision of oil market competition in China. In this way，enterprises of larger size and with higher level technology and better management will have better chance in obtaining crude oil resources.

Key words: crude oil, crude oil import right, oil pricing mechanism, private run oil refinery, oil and petrochemical industry