Editor's note: Advanced manufacturing is a key factor in developing the real economy, and advanced petroleum equipment manufacturing is the foundation for ensuring national energy security. This newspaper launches a special topic to explore the key core technological challenges that China's petroleum equipment manufacturing industry still faces, and how the petroleum equipment manufacturing industry can develop to achieve high-level technological self-reliance and provide equipment technical support for China's oil and gas resource exploration and development, as well as increasing storage and production. Stay tuned.

The world's first 12000 meter ultra deep automated drilling rig, the world's first 7000 meter CT150 ultra high strength continuous tube, and the world's first large-scale application of high-precision broadband controllable seismic source EV56... China's independently developed and manufactured high-end petroleum equipment has successively appeared in the application market.

In recent years, China's petroleum equipment manufacturing industry has achieved significant technological innovation, creating a series of high-end flagship products. As of the end of 2022, there are over 2000 enterprises above designated size in China's petroleum and petrochemical equipment manufacturing industry, with total assets exceeding 650 billion yuan, forming an industrial cluster and advantageous enterprises represented by petroleum drilling and production equipment, pipe equipment, marine engineering equipment, refining and chemical equipment, metal pressure vessels, etc. However, the contradiction of insufficient supply of high-end equipment, dependence on imported core components, and weak technological innovation capabilities remains prominent. China is currently in a critical period of transitioning from a major oil equipment manufacturing country to a manufacturing powerhouse.

The overall level gap is getting smaller and smaller,

But some key core components still rely on imports

The key core components of high-end equipment are the pain points of China's petroleum equipment manufacturing industry. "There is still a significant gap in key components, core materials, precision manufacturing, and other aspects of China's high-end petroleum equipment." Professor Zhang Min, Vice Dean of the School of Materials Science and Technology at Xi'an University of Technology, pointed out that China is currently unable to independently produce important components such as high-pressure and high flow pumps, high-pressure valves, high-temperature and high-voltage cables, and lacks the development ability of high-strength special materials such as high-temperature and high-pressure resistance, corrosion resistance, and wear resistance, These all limit the performance and reliability of China's high-end petroleum equipment.

Li Xianyi, General Manager of Beishi Company of the Engineering Institute, also pointed out that internationally renowned oil service companies represented by Schlumberger and Halliburton, with high-intensity R&D investment, continue to conduct high-end technology and equipment research and development, and take the lead in successfully developing a series of high-end petroleum engineering technologies and equipment, forming a dominant pattern of high-end technology and equipment. Only by continuously strengthening scientific and technological research and development capabilities, improving efficiency and comprehensive competitiveness, can China's petroleum equipment manufacturing enterprises transform from following the trend to running side by side and leading the way.

As the focus of oil and gas exploration and development expands towards the fields of "two depths and one non", the performance requirements for oil and gas equipment are also increasing. There is still significant room for improvement in the application capacity of high-end petroleum equipment in extreme environments such as deep water and polar regions in China. Zhang Min pointed out that China currently does not have fully independently designed and constructed large-scale equipment with complex structures such as ultra deep water drilling platforms and polar drilling platforms, nor does it have the technology to carry out long-term stable oil and gas exploration and development activities in extreme environments such as deep water and polar regions. These all constrain the effective utilization of China's marine oil and gas resources.

Intelligent manufacturing of petroleum equipment has just begun, and the foundation of digital intelligence is still relatively weak. Wang Weixu, Deputy General Manager of the National Research Center of Gem Machinery Company, said that in recent years, Gem Machinery has made breakthrough progress in the research and development of automated drilling rigs, desert rapid transportation drilling rigs and well repair equipment, reservoir transformation equipment, marine resource development equipment, and new energy equipment. However, there are challenges in the intelligence of drilling and repair equipment, fracturing equipment, as well as the design, manufacturing, and integration of marine underwater equipment.

The low recognition of domestic brands also restricts the localization and substitution of key components. Dr. Shan Daiwei, Manager of the Collaborative Innovation Office of Honghua Group, told reporters that although domestic manufacturers are actively promoting the localization and replacement of key core components, some foreign customers prefer Western international brands, which is also one of the reasons why some key components in high-end equipment still rely on imports. Zhang Min pointed out that currently, China's high-end petroleum equipment still lacks original technologies and products with independent intellectual property rights and international competitiveness, and has not formed a complete industry standard and regulatory system. These have all affected the market recognition and competitiveness of China's high-end petroleum equipment.

Creating high-end equipment,

Technological innovation and mechanism innovation should be pursued simultaneously

To promote new industrialization and accelerate the construction of a manufacturing powerhouse, we must firmly grasp the lifeline of technology in our own hands. Currently, the complex and ever-changing international situation has further increased the supply risk of high-end oil and gas equipment, and there is an urgent need for us to further improve our independent equipment support capabilities. At the same time, the country has proposed the "dual carbon" goal, and domestic oil and gas exploration and development are developing towards areas such as "deep, old, low, non, and sea". It is also urgent for equipment manufacturing enterprises to concentrate their advantageous resources to carry out research and development, and strive to form a batch of original and leading key core technologies.

Zhang Min pointed out that in order to address the world-class challenges encountered in China's oil and gas exploration and development, petroleum equipment manufacturing enterprises need to continuously improve their independent innovation capabilities, strengthen scientific and technological breakthroughs, and develop high-end equipment that adapts to complex geological conditions and high-risk environments. Especially, we should increase investment in basic theories, key materials, advanced processes, intelligence and other fields, cultivate high-level scientific research talents, and form a technology and product system with international competitiveness.

Around the direction of high-end, intelligent, and green development, the petroleum equipment manufacturing industry urgently needs to strengthen deep integration with information technology and new energy technology. Zhang Min pointed out that it is necessary to improve the intelligence, digitization, and networking level of petroleum equipment, and use technologies such as big data, cloud computing, and the Internet of Things to achieve remote monitoring, fault diagnosis, optimization scheduling, and other functions of petroleum equipment, thereby improving the operational efficiency and safety of petroleum equipment. Regions with abundant oil and gas resources are often also regions with abundant new energy such as wind and solar energy, which provides inherent advantages for the utilization of clean energy in oil and gas equipment. Shan Daiwei pointed out that petroleum equipment manufacturing should strengthen its integration with new energy and CCUS, and help the oil and gas industry achieve green and low-carbon transformation.

Innovation in institutional mechanisms is an important guarantee and support for technological innovation. We need to improve the system and mechanism of scientific and technological innovation, establish an integrated innovation mechanism of industry, academia, research and application, leverage the resources and forces of equipment manufacturing enterprises, universities, scientific research institutions, industry associations and other parties, jointly explore and apply cutting-edge technologies, and facilitate the transformation of scientific research achievements. Li Xianyi said that we should fully utilize resources such as higher education institutions and research institutions, implement talent introduction projects, form innovative industry alliances, integrate and share technology and experimental resources, achieve deep integration of industry, academia, research and application, build efficient, collaborative, open and shared R&D platforms, and continuously make up for the shortcomings and weaknesses of enterprises in the field of basic research. The key to technological innovation is talent. Dan Daiwei emphasized the need to participate in global talent competition, optimize industrial layout, and attract outstanding talents from around the world. At the same time, we need to strengthen the adjustment of talent structure, increase the reserve of professional talents in digital information, electronic circuits, and other fields, and improve the professional structure of talents.

Cracking large but not strong contradictions,

China Petroleum strives to build an innovative highland for energy equipment research and development

As the largest petroleum equipment manufacturer in China, PetroChina has formed a relatively complete petroleum equipment manufacturing industry system and industrial cluster, with products covering more than 200 brands in four major categories, covering the upstream, midstream, and downstream of the oil and gas industry chain. It has the world's largest drilling rig production and manufacturing capacity, as well as the country's largest oil and gas transportation steel pipe production and manufacturing capacity. At the same time, the contradiction of being large but not strong is still prominent, especially in terms of the need to improve innovation capabilities, lack of independent core technologies, weak basic research and development, weak product competitiveness, and the problem of key equipment being stuck.

In order to better support the transformation and development of energy and chemical businesses, China Petroleum has proposed a development direction for equipment manufacturing enterprises to accelerate the transformation from service guarantee as the main focus to self-reliance and self-improvement strategic support. Chinese petroleum equipment manufacturing enterprises focus on the emerging industry layout of the group company, focusing on the responsibilities and missions of increasing oil and gas storage and production, refining and upgrading equipment support, and the demand for high-end equipment in emerging industries such as new energy and green environmental protection. They proactively carry out technological innovation and research and development, and promote the development of equipment manufacturing business towards high-end, intelligent, and green directions.

Gem Machinery continues to improve its three in one technological innovation system of "medium - and long-term basic application research, medium - and short-term common technology research and development, and short-term product development", focusing on "refining drilling equipment, optimizing reservoir transformation equipment, and strengthening underwater equipment" for research and development. Baoji Steel Pipe continues to improve its research system of "basic research+product research and development+engineering technology", accelerate original and leading scientific and technological breakthroughs, increase investment in new generation information technology, artificial intelligence, new energy, additive manufacturing, and green environmental protection, and create a "source of original technology" for oil and gas pipes. Jichai Power comprehensively develops the "three machines and one new" business of engines, compressors, intelligent fuel dispensers, automatic battery swapping products, and new energy products. Bohai Equipment strengthens research on key core technologies such as high-temperature submersible electric pumps and large displacement submersible screw pumps, and expands the series of rodless lifting products. Engineering Institute Beishi Company focuses on the research and development of intelligent, big data, and highly integrated equipment, and carries out research and development from four aspects: mechanism models, cutting-edge technologies, process methods, and key components. It aims to create automated intelligent drilling and completion high-end equipment, drilling instruments, and downhole tools with complete independent intellectual property rights.

Promoting new industrialization and creating excellent equipment to ensure national energy security is the responsibility and mission of equipment manufacturing enterprises. China Petroleum will continue to gather strength to carry out original and leading technological breakthroughs, cultivate and build an innovative highland for energy equipment research and development, and strive to achieve independent and controllable key core technology and equipment in the oil and gas and new energy industries. (Wang Anyi, Jiang Yan, Dang Qing, and An Pengfei participated in the interview)

Expert Connection

Driven by innovation, leading the development of high-end, intelligent, and green petroleum equipment in China

Liu Xianming, Vice Dean of the School of Mechanical Engineering at Changjiang University

The report of the 20th National Congress of the Communist Party of China pointed out that the implementation of industrial foundation reconstruction projects and major technological equipment research projects will support the development of specialized, refined, special, and new enterprises, and promote the high-end, intelligent, and green development of the manufacturing industry. This has pointed out the direction and provided fundamental guidance for the manufacturing industry to accelerate the implementation of the innovation driven development strategy and achieve high-quality development. This reflects the important position of the petroleum equipment manufacturing industry in China's energy supply chain and the high attention that the country attaches to the development of petroleum equipment enterprises.

In recent years, petroleum equipment enterprises have actively responded to the national innovation driven development strategy from their own industrial structure, increased their efforts in tackling key core technologies, and made great progress in manufacturing technology, quality level, and overall supporting service capabilities, forming an integrated industrial chain of research and development, production manufacturing, and supporting services. But it still mainly serves the mid to low-end market, with insufficient technical strength in high-end product production and overall weak competitiveness.

With profound and complex changes in the domestic and international environment, the national energy security situation is becoming increasingly severe. Adhering to vigorously enhancing domestic oil and gas exploration and development efforts and ensuring national energy security are important goals during the 14th Five Year Plan period. Petroleum equipment enterprises have ushered in new development opportunities, but also face extremely severe challenges.

China's energy demand continues to grow, and its dependence on imports is gradually deepening. High end manufacturing, energy conservation and efficiency, deep integration of informatization and intelligence have become the development trend of the oil and gas industry, but China's technological level in key areas such as software and information security is relatively backward. Although petroleum and petrochemical equipment manufacturing enterprises continue to increase investment in information technology construction, some enterprises have gradually built intelligent equipment manufacturing systems, and the Internet of Things for equipment manufacturing is also gradually advancing, the overall foundation of information technology for most equipment manufacturing enterprises is still relatively weak. In addition, the foreign software industry has established a complete ecosystem, and domestic application software can only be developed on the basis of the foreign software ecosystem, and each is fighting independently, failing to concentrate resources and strength to form a domestic intelligent system.

As of the end of 2022, there were over 2000 large-scale enterprises in China's petroleum and petrochemical equipment manufacturing industry, with a large number of enterprises but low product technology content and severe overcapacity. At present, the equipment products produced domestically have many conventional products, severe homogenization, few branded products, and fewer key products with independent intellectual property rights. Especially in high-end equipment such as automated drilling rig equipment, deep-sea oil and gas development technology equipment, and ultra-high temperature downhole tools, there are still technical bottlenecks. There are still some shortcomings in the stability, reliability, and adaptability of domestic equipment, which makes domestic petroleum equipment enterprises lack competitiveness in the high-end market. As a result, core equipment components such as rotary steering systems and near drill bit measurement short joints still rely on imports or are directly provided with technical services from abroad.

To address the above challenges, China's petroleum equipment enterprises can take the following measures to promote industrial transformation and upgrading, and enhance international competitiveness:

One is to strengthen independent innovation and green manufacturing. Build an innovative R&D system for enterprises, apply for national projects to increase R&D funds, establish cooperative relationships with domestic and foreign universities, research institutions, and upstream and downstream enterprises in the industry chain, share talent resources, technological resources, and R&D achievements, promote the innovation and upgrading of key technologies, and cultivate more scientific research talents to participate in innovation work in the petroleum equipment industry. Optimize equipment design, develop efficient equipment, improve energy utilization efficiency, reduce energy consumption in the production process, and reduce negative impacts on the environment. Actively promote the application of clean energy, such as natural gas and renewable energy, in oil and gas extraction and processing, and achieve the green transformation of petroleum equipment enterprises.

The second is to promote intelligent and digital transformation. Accelerating the deep integration with informatization, intelligence, and digitization, intelligent manufacturing is an important direction for future development. Introducing advanced digital technologies, such as artificial intelligence, big data analysis, and the Internet of Things, to achieve intelligent monitoring, predictive maintenance, and operational optimization of equipment, and improve the intelligence, production efficiency, and safety of equipment. Strengthen software development cooperation between enterprises, promote coordinated development of engineering application software, concentrate efforts on building a domestic software ecosystem, and gradually establish an intelligent system.

The third is to optimize the talent cultivation and management mechanism. Establish a people-oriented strategic concept, establish a comprehensive talent training system, improve professional skills, professional level, and utilization efficiency of talents, cultivate high-level composite talents, and optimize talent allocation and re allocation. Encourage team diversity, attract and retain talents with diverse backgrounds and professional knowledge to promote innovation and problem-solving. Improve the enterprise management system, enhance decision-making efficiency and execution ability, to cope with market changes and competitive challenges. Strengthen the risk control capabilities of petroleum enterprises, comprehensively and multi-level carry out internal control management, and provide guarantees for the normal operation of enterprises. Major domestic oil companies have also innovatively proposed management models. Gem Machinery creates a "Five Hearts" quality management model, achieving a focus on technical research and development, worry free on-site services, reliable remote services, considerate rental services, and reliable testing services; Baoji Steel Pipe Innovation "Eight Step Method" Lean Management.

China's petroleum equipment should be oriented towards internationalization, establish strategic cooperation with international partners, promote customized products and services, promote coordinated development of government policies and various industries, improve supply chain integration, and adapt to the increasingly complex and changing market environment. By continuously improving their technological level, optimizing resource utilization, expanding international markets, and cultivating high-quality talents, petroleum equipment enterprises can better fulfill their mission of ensuring national energy security, achieve high-level technological self-reliance and self-improvement, enhance their core competitiveness, and contribute to the sustainable development and security guarantee of China's energy industry. At the same time, the government, enterprises, and all sectors of society should work together to provide support and guarantees for the development of the petroleum equipment industry, and jointly promote the prosperity and innovation of China's petroleum equipment industry.

Corporate voice

How can equipment manufacturing enterprises achieve high-level technological self-reliance and self-improvement through leading technological breakthroughs in the face of energy industry transformation and upgrading?

Hou Wenhui, a technical expert at Gem Machinery Company, stated that we must adhere to facing the forefront of world technology and major national needs. Through leading scientific and technological breakthroughs, we will vigorously build a "source" of national oil and gas drilling equipment technology, and provide advanced equipment and technical support for the transformation and upgrading of the energy industry. Firstly, we will increase our efforts in technological research and innovation, accelerate breakthroughs in automated drilling rig equipment technology, fracturing equipment technology, and marine drilling equipment technology; Secondly, actively layout digital transformation and accelerate the promotion of intelligent manufacturing; Thirdly, we will conduct technical exchanges and cooperation with globally renowned enterprises and universities, establish strategic cooperation relationships, and carry out joint research and development; The fourth is to accelerate the cultivation of a high-level scientific and technological talent team, establish a system of incentives and guarantees for scientific and technological innovation, and fully mobilize the enthusiasm of scientific researchers. (Interview with Wang Anyi and Jiang Yan)

Sun Shaoyang, Senior Engineer of Baoji Steel Pipe Company: In the process of leading high-quality development driven by innovation, institutional mechanisms, innovation capabilities, digital equipment, and innovative talents are the urgent bottlenecks that need to be solved. To lay a solid foundation for innovation, we must continue to make efforts in the following areas: first, strengthen the leadership of the Party in scientific and technological innovation work, promote the deep integration and resonance of enterprise party building and scientific and technological innovation, fully promote the collaborative interaction of various innovation entities, smooth docking of various innovation elements, efficient allocation of various innovation resources, and maximize the exploration of innovation potential, stimulate innovation vitality, and gather innovation forces. The second is to take innovation management as the fundamental guarantee, continuously improve the system and mechanism of science and technology project management operation, scientific research open cooperation, and innovation achievement transformation and application, focus on solving problems such as insufficient integration of scientific research forces, low innovation efficiency, and poor achievement transformation, truly make institutions, talents, funds, and projects fully active, and form a strong joint force to promote scientific and technological innovation. Thirdly, we will always prioritize the construction of innovative capabilities, balance the two major roles of scientific and technological innovation in supporting the present and leading the future, and firmly grasp the initiative of innovation and development in our own hands, actively integrating into the new development pattern. The fourth is to adhere to the integration and coordinated development of digitalization and intelligence, actively promote the organic combination of digital equipment and intelligent production lines, and further enhance the integrated competitive advantage of enterprises. The fifth is to create an open innovation ecosystem, accelerate exchanges and cooperation with universities, research institutes, and industry leading enterprises in the fields of new energy, new materials, new technologies, etc., explore effective mechanisms and models for joint research and sharing of achievements, and promote the integration and mutual promotion of innovation and industry chains. (Interview with Wang Guanci)

Zhang Zhensheng, R&D Director of Large Bore Engines at Jichai Power Company, stated that we should promote technological innovation from two aspects: "rapid breakthroughs" to support the current situation and "long-term achievements" to lead the future, and promote the achievement of high-level technological self-reliance and self-improvement. "Supporting the current" means adhering to the deployment of innovation chains around the industrial chain, focusing on solving the most urgent and urgent research and development problems, and winning the battle of key core technologies; "Leading the future" means based on long-term scientific prediction of industrial development trends, laying out industrial chains around innovation chains, and scientifically planning and laying out strategic oriented innovation projects.