Currently, local refineries in Shandong largest refining capacity is higher, as in refining the strongest provinces. Although Shandong to refining qualified , but subject to import quotas simply could not get enough crude oil for processing, the high price of fuel oil purchases only alternative . Although there are currently more than 40 Shandong into the scale of local refineries , but the data show that in 2011 its first crude oil distillation capacity utilization average of only 35% , the reason is a serious lack of raw materials. The face of private enterprises to enter the oil market high threshold phenomenon , breaking the upstream crude oil is the primary bottleneck issue.
In recent years, a number of parts on the new line with national pellet machines policy to fine chemicals mainly petrochemical refinery processing enterprises. Through continuous development and growth of these enterprises in the enterprise scale, devices, and technology management , etc., are up to the national level of the new era of advanced refining companies , have been oil mill plants chemical production and oil production capacity. However, crude oil processing qualifications, straighten the country no longer small oil refineries after approval, but some state-owned enterprises due to the petrochemical venture participation , but also enjoy the crude oil distribution plan . This has resulted in similar enterprises can not enjoy the same policy treatment , resulting in unfair competition , resulting in no oil distribution plan new enterprises in the " cracks " in the tough survive and costly operation .