In accordance with the spirit of the Implementation Plan for Advancing the Development of the Industrial Chain and Strengthening Industry in Baoji City by the Municipal Party Committee and Government, as well as the Work Plan for High quality Development of the Baoji Advantageous Equipment Manufacturing Industry Cluster by the Municipal Political Consultative Conference, and in accordance with the arrangements of the Municipal Advantageous Equipment Manufacturing Industry Cluster Office, under the leadership of Zhang Jianke and Zhang Tianli, the Social and Legal Affairs Committee of the Municipal Political Consultative Conference organized some members of the Political Consultative Conference, in conjunction with relevant functional departments at the municipal level, to conduct specialized research on the development of the petroleum equipment industry in the city, understand the current situation, identify problems, and put forward opinions and suggestions.

1、 Basic information

As an old industrial base, Baoji has developed for many years and has formed a group of petroleum equipment enterprises mainly engaged in research and development, manufacturing, integration, sales, and service. Our city's petroleum equipment mainly manifests in three fields: petroleum drilling and production equipment, oil and gas specialized pipes, and accessories for well field engineering equipment. The technical level and market share of six products, including DC drive drilling rigs, desert drilling rigs, drilling pumps, oil and gas pipelines, urban water and heat pipelines, and continuous oil pipes, rank first in the country. In recent years, under the leadership of two leading enterprises, Gem Machinery and Gem Steel Pipe, the city has formed more than 20 complete machine and key component enterprises, as well as more than 100 key component supporting enterprises. The categories of petroleum equipment manufacturing are relatively complete, and the product specifications and varieties can basically meet the needs of onshore petroleum exploration and development, and extend to the direction of offshore drilling platforms. From the aspects of production capacity, output, output value, variety specifications of production, and employees, a relatively complete petroleum drilling and transportation equipment industry chain has been formed. In 2021, the completed output value was 21 billion yuan; In the first eight months of this year, the output value was 13.6 billion yuan. Firstly, the technical level is high. Gem Machinery is the supporting unit of the National Oil and Gas Drilling Equipment Engineering Technology Research Center, as well as the working support unit of the Secretariat of the National Drilling Machine Standardization Department and the Marine Drilling and Production Equipment Standardization Department. The company has undertaken more than 70 national and provincial-level scientific research projects, received more than 210 national and provincial-level awards, and has 1106 authorized patents. It has formulated and revised 132 various standards, and its patented technology ranks first in China's petroleum equipment manufacturing system. Baoshi Steel Pipe Company has strong technical strength and is the only national petroleum and natural gas pipe engineering technology research center in the industry. It is a national level innovative enterprise and a key high-tech enterprise of the National Torch Plan. The company has a group of industry-leading leading and characteristic technologies, with breakthroughs in the three major product fields of conveying pipes, specialized pipes, and continuous pipes, forming more than 10 core supporting technologies. Its technological strength and information technology level remain industry-leading. The second is strong product competitiveness. The leading products of Gem Machinery include onshore and offshore oil drilling and production equipment, as well as equipment used in important special occasions, especially in areas such as steel wire ropes, cone and PDC drill bits, wellhead well control equipment, fracturing units, special vehicles for oil fields, electrical control equipment, etc. The products cover more than 50 categories and more than 1000 varieties and specifications. Among them, 52 products in 13 major categories have obtained the right to use the API logo of the American Petroleum Institute. Gem Machinery has been recognized as a "Chinese Famous Trademark" and "Chinese Famous Brand" product, and has been recognized as a "Chinese Industry Iconic Brand" by the Chinese Brand Research Institute for its uniqueness and exclusivity. Baoshi Steel Pipe has the first spiral submerged arc welded pipe production line in China, the first high-frequency welding heat tension reducing (SEW) oil sleeve production line, and the first spiral pre precision welding production line. Its leading products have won honors such as "National Exemption Product", "China Famous Brand Product", and "National User Satisfaction Product". The company's equipment and technical capabilities are the first in the oil and gas field in China, and it has outstanding competitive advantages. Baoji Saifu Petroleum Machinery Co., Ltd., Jinzuan Petroleum Machinery Co., Ltd., Baoji Yidong Petroleum and other companies are high-tech enterprises. Thirdly, there is a strong foundation in scientific research. At present, our city has the only national petroleum and natural gas engineering technology research center in the petroleum equipment industry, the only national level engineering technology research center, 2 provincial-level enterprise technology centers, 2 municipal level enterprise technology centers, 1 postdoctoral workstation, more than 1580 scientific research and technical personnel, 2 experts enjoying special allowances from the State Council, 4 senior technical experts from China National Petroleum Corporation, and 3 skill experts. So far, the industry has authorized more than 1200 patents and formulated 132 various standards, with significant advantages in scientific research in the national petroleum equipment industry.

2、 Existing problems

One is the lack of local supporting facilities. The special steel used in petroleum equipment requires some key materials, components, and components to be purchased from outside the province or even abroad. The independent research and development capabilities of the products need to be further strengthened, and the production process technology needs to be further improved; The supply gap of new raw materials for non-ferrous metals is significant, and there is a significant gap in the quality of basic materials compared to foreign countries. The level of supporting facilities within the city is low, with a local supporting rate of only 25%. A large amount of basic materials and key components mainly rely on external supply. Secondly, the production technology of small and medium-sized enterprises is relatively backward. In the entire city's petroleum equipment industry chain, apart from several large enterprises such as Gem Machinery and Baoji Steel Pipe, most of them still belong to small workshop production, with gaps in production capacity, production scale, CNC application, process level, and other aspects. The market competitive advantage is not prominent, the scale efficiency is not high, and the development is slow. Thirdly, there is insufficient information sharing, communication, and cooperation among enterprises. The communication, interaction, and information exchange between enterprises are insufficient, resulting in limited communication and cooperation. Some collaborations could have been completed within the chain, but many companies have to go outside the city or province, which not only delays time but also increases production and operating costs, leading to insufficient utilization of local resources and low efficiency. Fourthly, product homogenization is more common and complementarity is poor. From the perspective of industrial chain agglomeration form and layout, many enterprises have similar products and business models, and there is a phenomenon of homogenization. Some private petroleum equipment enterprises in our city were founded by technical or management personnel who had previously worked in gemstone machinery and gemstone steel pipes. The production and operation products of these enterprises are similar to those of gemstone machinery and some products of gemstone steel pipes. The scale of the enterprises is small, the level of technology is low, the production capacity is not high, and their market competitiveness is weak, which also leads to insufficient complementary advantages in the entire industry chain. The fifth is the shortage of technical talents in enterprises. Due to geographical reasons and the instability of private enterprises, there is a shortage of research and development personnel, difficulty in recruiting skilled workers, and a lack of successors, which greatly restricts the pace of enterprise development.

3、 A few suggestions

Our city's petroleum equipment industry should adhere to the direction of digitalization, intelligence, and green development, focus on cutting-edge technological fields, overcome a number of independently controllable and "bottleneck" technologies, and focus on building petroleum equipment research and development bases, oil and gas specialized pipe production bases, and petroleum drilling and production equipment production bases. By 2025, the total industrial output value of the city's petroleum equipment industry chain will reach 30 billion yuan. Therefore, the following suggestions are proposed:

（1） Strengthen investment attraction and enhance local supporting facilities

Innovate investment promotion methods, vigorously carry out industry chain investment promotion activities, establish a list of industry chain replenishment, strengthening, and extension projects, carry out group investment promotion, enterprise investment promotion, and small team investment promotion activities, accurately connect industrial projects, adopt "one enterprise, one policy" support policies, and attract breakpoints and weak industry chain projects to settle in Baoji. Adopting a combination of "going out" and "inviting in" approach, we encourage the park to layout according to industrial cluster planning, actively introduce high-tech enterprises from outside the region and overseas to gather in the park, and improve the local supporting rate and overall industrial development level.

（2） Increase support and encourage technological innovation

Strengthen tracking and supervision, promote the implementation of various preferential policies for enterprises such as strengthening the industrial foundation, industrial transformation, and high-quality development in the central and provincial governments. Increase the tilt of existing preferential policies, prioritize cluster projects in preferential policies such as interest subsidy for provincial and municipal technological renovation projects, special fund subsidies for the development of small and medium-sized enterprises, and guarantee funds for small and medium-sized enterprises. Encourage and support supporting enterprises to expand their scale, improve equipment, and conduct scientific and technological research and development. Actively develop and develop low-cost, high value-added supporting products, achieve breakthroughs in technology and performance, and form a low-cost expansion type industrial cluster.

（3） Play the role of alliances to promote collaborative development

The Baoji Petroleum Equipment Industry Development Federation was officially established in July this year, providing a platform for communication and cooperation among enterprises in the industry chain. We should actively explore advanced development models of federations, establish standardized and institutionalized work mechanisms, guide leading enterprises and small and medium-sized enterprises to open up communication channels through alliance organizations, clarify industrial goals, broaden development paths, strengthen interactive cooperation, promote collaborative and complementary advantages in various links of processing, manufacturing, sales, and foreign trade, and strengthen the supply chain; Fully integrate industry resources, improve the localization matching rate of complete equipment, reduce duplicate construction and investment risks, and optimize the industrial chain structure; Build a mechanism for promoting new petroleum equipment products and technologies, as well as a sharing mechanism, to achieve mutual benefit and win-win outcomes.

（4） Strengthen talent cultivation and enhance human resources guarantee

The human resources and social security department should assist enterprises in introducing scientific research personnel and high-tech talents through official media, adopting various channels and methods in a targeted manner; Enterprises need to enter various domestic technical schools for on-site recruitment. If conditions permit, they can sign targeted training contracts with technical schools to introduce talents. At the same time, we should make full use of training institutions in our city, increase cooperation between schools and enterprises, and solve the problem of structural shortage of skilled workers.

（5） Establishing a new platform to drive enterprise development

Innovative thinking, actively expanding product supply and marketing channels, led by leading enterprises, further promoting the supply and marketing model of combining sales and leasing, and comprehensively opening up the "leasing" market based on the current development status of the petroleum industry. Through the "government+enterprise+bank" model, establish a petroleum equipment leasing company to carry out petroleum equipment leasing business, meet the project needs of the petroleum extraction market, and increase the production and sales of our city's petroleum equipment industry through the sales and leasing of high-quality products, thereby improving the overall operational level of the entire industry chain.