Study on Oil Price Change, Internal Regulation and Profitability Index -- Taking Oil Exploitation Industry of China as an Example

Liangfeng Zhu, Xueyi Zhu


The objective of this paper is to study the relationship between the change of oil price and the profitability of Chinese oil mining enterprises. This paper collects the relevant data of China’s oil exploitation industry and listed companies from 2011 to 2020, and makes an empirical study by using the standard value weight method and regression analysis method. The conclusions are as follows: (1) from 2011 to 2020, the average annual decline of international oil price is 6.71%, which significantly weakened the profitability of Listed Companies in China’s oil exploitation industry. (2) From 2011 to 2020, the average annual decline of gasoline prices in China is 2.61%. However, due to the implementation of the “minimum price” policy by the Chinese government, the profitability of Listed Companies in the oil exploitation industry has not decreased, but increased. (3) From 2011 to 2020, the internal control level of Listed Companies in China’s oil exploitation industry continued to decline, which was significantly negatively correlated with profitability. (4) Listed companies in China’s petroleum exploration industry adhere to the concept of sustainable development, pay attention to scientific and technological investment, effectively operate assets, increase cash flow and control costs. These measures have significantly improved the profitability of enterprises.

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