1. Current situation of shandong ground refining 
　　Refining capacity: China's local refiners had a total refining capacity of 272 million tons in 2017, accounting for 31.41 percent of the country's refining capacity, down 1 percentage point from last year. Among them, shandong still has the largest number of local refineries in China and the most densely distributed region, accounting for 63.73 percent of the total production capacity of local smelting in China, while other regions, such as northwest, north China and northeast China, have relatively considerable amounts of ground smelting. 
　　To be specific, the total refining capacity of the primary processing plant (often decompression) of shandong ground refining in 2017 was 17325 million tons/year, up by 7.9 million tons or 4.78 percent year-on-year, and its average refining capacity was 267 million tons/year, slowing down compared with the previous two years. The new ground refining units mainly focus on the secondary and tertiary processing units, especially the hydrogenation and reformer units, which still account for a large proportion of the newly built and under construction units. 
　　In terms of secondary and tertiary processing units, the capacity of catalytic cracking unit (including heavy oil catalysis) in 2017 was 5512 million tons/year, an increase of 255 million tons/year or 4.85% over the previous year. The capacity of hydrogenation unit was 7657 million tons/year, an increase of 872 million tons/year or 12.93% year-on-year. The capacity of other devices, such as recombination, gas separation, MTBE and alkylation, has also been improved. 
　　Product sales: the largest sales area of shandong crude oil is in shandong province, which can be transported to northeast of north China by automobile, southwest of northwest China by railway, and east and south China by water. In 2016, the proportion of motor transport, water transport and railway transport was 73%, 14% and 12% respectively. In recent years, land refining has been actively expanding retail terminals through self-construction or joint venture protection, and the proportion of traders' sales has been greatly reduced and the proportion of retail sales has been significantly increased. In 2016, test water refined oil was exported, with a total of 730,000 tons of gasoline and 20,000 tons of diesel. Export quotas for refining were abolished in 2017. 
　　2. Distribution diagram of shandong georefining

                  
　　3.Future development direction 
　　Import costs have room to fall. Currently, the local refiners that have the right to import crude oil have systematic plans for their crude oil import channels, crude oil varieties and target prices. After the crude oil futures are listed, they will not change quickly in the short term. The listing of China's crude oil futures will bring the price closer to the asia-pacific market. As one of the major buyers of imported crude oil, shandong local refiners may take advantage of the new tool of China crude oil futures to optimize the import operation. The most intuitive is that there is room for the reduction of import cost. 
　　Development direction of ground refining. With the increase of imported crude oil for ground refining and processing and the strict control of tax by the state, ground refining will develop to deep processing and form the integration pattern of upstream and downstream refining, especially for the reconstruction, hydrogenation and the construction of downstream chemical plants. 
　　Future market pattern. After 2018, ground refining will become an equal market subject with three barrels of oil and private large-scale refining. It is estimated that the total production capacity of "three barrels of oil + private large-scale refining" will be basically equal to the total domestic demand by 2020 to 2021, but considering that the operation rate is unlikely to exceed 90%, the actual supply capacity of three barrels of oil + private large-scale refining is still unable to meet the domestic demand. Therefore, the productivity of refining is still an indispensable corner. 
　　Appendix :(ground refining details)

 
　　China a-olefin market and technology BBS 2018 will be held in hefei, anhui province from nov 22-23. The conference will discuss the current situation and trend of a-olefin market in the world and China. Progress of a-olefin production technology and industrial layout; A-olefin project investment; Development trend of high-end polyolefin and market capacity of a-olefin; Development and industrialization of key technologies for PAO; A-olefin production of high carbon alcohol technology and industrial prospects. Visits will also be arranged.

　　The 2018 China coal olefin conference will be held in anhui from nov 21 to 22. The meeting will discuss China's coal olefin capacity expansion and trend analysis; New pattern of global and Chinese polyolefin market; CTO factory operation and technical progress; Profitability analysis of typical CTO projects in China; The latest technologies of air separation, coal gasification and syngas purification; Methanol, MTO process and catalyst technology upgrading; Environmental issues. Visits will also be arranged.