Chamois16

Comparing China's Two Oil Giants

The commentary implies that PTR and SNP are similar oil companies, which can be compared statistically. This is not true. PTR is an integrated oil and gas company with dominant E&P in both natural gas and oil, plus ownership of the infrastructure pipelines. SNP, on the other hand is a refiner and retailer which must purchase the majority of its crude.

SNP, because it is squeezed by price controls on retail sales of refined products and higher crude prices, currently receives a subsidy from the central government. PTR does not.

PTR's NG production is expanding rapidly, and the PRC is pushing for transition from coal to NG for environmental reasons. PTR, which also retails petrol(gasoline) and gasoil (diesel) and has a near monopoly on land based exploration, not only in China but in Kazakhstan and Uzbekistan, would seem to have the higher growth potential. Both are good companies, as is CNOOC (CEO) as well, but they are not all apples for comparative purposes.