BEIJING, Sept. 12 (Xinhua) -- China's oil service sector has entered a new round of boom cycle, thanks to the recovery in the domestic oil and gas industry since the second half of 2017, the Xinhua-run Shanghai Securities News reported on Monday.
With the continuous recovery of oil prices in 2017, the capital expenditure of oil companies, an important indicator of the industry, began to increase. Last year, the fixed-asset investment of China's oil and gas exploration industry increased 13.6 percent.
In 2017, the total capital expenditures of China's three large oil companies including CNPC, Sinopec and CNOOC in the exploration and development business increased 11.28 percent year on year, hitting the highest level since 2013.
From August, CNPC and Sinopec held meetings, in succession to increase efforts for the domestic oil and gas exploration and development.
According to a guideline released in September by State Council, China's cabinet, to promote coordinated and stable development of the natural gas, China will speed up the construction of major natural gas production capacity and infrastructure projects, increase the efforts for the domestic exploration and development, and strive to achieve more than 200 billion cubic meters of natural gas production by the end of 2020.
Industry insiders note that the policy support and the recovering industry will promote development of the oil service sector.
China Petroleum Engineering Co., Ltd. (600339.SH) pointed out that in the context of the continuous rebound in international oil prices, investment in the domestic oil and gas industry is expected to accelerate and abundant orders are expected.
In the first half of the year, Haimo Technologies Group Corp. (300084.SZ) acquired orders for oilfield equipment and related services worth about 522 million yuan, showing a significant year-on-year increase, with the amount of the orders exceeding its annual income in 2017. (Edited by Hu Pingchao, hupingchao@xinhua.org)
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