Evaluation Framework and Model of Oil Industry's International Competitiveness

Article excerpt

INTRODUCTION

Oil industry is one key industry in the world which includes oil exploration, extraction, refining, gathering & transportation (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the petroleum industry are fuel oil and gasoline, and it is also the raw material for many chemical products, such as pharmaceuticals, fertilizers, solvents and plastics. Its degree of development has become one of the important symbols of a country's economic strength and scientific & technological level. Evaluating oil industry's competitiveness objectively and accurately is very important for a country's strategic planning & positioning. So it is necessary to structure evaluation framework and model of oil industry's international competitiveness to advance one country's strategic planning. When we do this work, there is something which we have to do including to design evaluation index system, structure model and compare the rank of each country. And now, let solve this problem step by step in the following context.

1. DESIGN OF EVALUATION FRAMEWORK FOR OIL INDUSTRY'S INTERNATIONAL COMPETITIVENESS

Evaluation index is the carrier of evaluation content and the basis for evaluation activities. In order to make a comprehensive evaluation, we need to select and design evaluation index from multi-levels and multi-angles, and all these evaluation indexes constitute an evaluation index system. The construction of evaluation index system should follow certain design principles to ensure that the evaluation is objective and accurate.

1.1 Design Principles of Evaluation Framework

In this article, the design of the oil industry's international competitiveness evaluation index system is guided by the following principles: (1) Scientific principle. The scientific and reasonable level of index system is directly related to the quality of evaluation. Scientific principle requests the index system must be in accordance with the meaning of the international competitiveness. Indexes must be typical, integral and systematic to secure that the evaluation result is objective and true, and also must be easy for vertical and horizontal comparison. Human interference should be minimized in order to reduce error. (2) Comprehensive principle. This principle requests the design of the index system should try to reflect the oil industry's international competitiveness from all aspects: not only the present status of production and operation activities, but also the long-term trend of development; not only the inner conditions but also the outside affecting factors. (3) Importance principle. The importance of impact on international competitiveness, or the degree of contribution to competitiveness, must be considered when selecting indexes to secure the indexes selected are appropriate and prominent for reflecting the oil industry's international competitiveness. (4) Comparability principle. In the design of statistical indexes and index system, index's caliber and calculation method should be consistent in order to realize the comparability in different areas and nations and at different time points, and to find out gaps and improve the oil industry's international competitiveness. (5) Highlighting oil industry's nature principle. The evaluation index system will be used to compare the international competitiveness in different areas and nations for the oil extractive & refining industry. So the indexes should not only reflect the common

character of competitiveness evaluation, but also highlight the special nature of the oil industry. In addition the indictors should be consistent or little change with the present work of oil industry to make evaluation easier.

1.2 Selection of Evaluation Index

According to the above principles, this article selected eighteen evaluation indexes in total from three aspects: current competitiveness, potential competitiveness and environmental factors to form the international competitiveness evaluation index system of oil industry, as shown in Table 1. …