Case Study: Oil & Gas Market – Downstream Oil and Gas Industry Research in China

The challenge

One of the global leading research firms in the energy industry wanted to review the downstream oil and gas business in 13 provinces (23 cities) in China, and map the market entry strategy for an international oil company.

The objectives of the study were to:

Understand the distribution and operation of the oil and gas retail business in China
Understand the national and provincial level regulations
Evaluate market sizing in terms of volume and value
Estimate the market share of different players (international oil companies vs. national oil companies vs. private oil companies)
Identify target growth segments (non-fuel versus fuel)
Analyze the price points of the retail oil and gas business in different geographic regions and link these to changes in national fuel policies and the macro economy
The process

Spire commenced the study with on-site observations at petrol stations across 13 provinces in China over two years (covering different location types such as urban, sub-urban, rural and highway).

Extensive desk research (including online resources and published trade data or magazines in hardcopies) were also carried out to gather more insights. Expert interviews with trade associations and industry journalists, as well as in-depth interviews with government officials and industry players were conducted as well.

The results

The client used Spire’s data findings and actionable recommendations to deploy its strategic and tactics for mapping its market entry strategies.

Project deliverables included:

Fuel sales consumption estimates and segmentation across 13 provinces in China
Competitive situation in the fuel retail sector in China
Supply chain analysis and business model