Exploration ensures supply, but pollution damages brand image
China consumes about 10 million barrels of crude oil daily, ranking second in the world only behind the US in consumption. To ensure a continuing supply of energy to meet ongoing need, the leading companies continued international exploration.
PetroChina linked with Exxon Mobile in Iraq. Sinopec completed two deals in Africa. CNOOC (China National Offshore Oil Corporation) joined a consortium to work on an offshore Brazil site. With over 30,000 service stations, China’s largest network, Sinopec’s distribution businesses benefited from loosened price controls.
Consumer and government concern with dangerous air pollution levels in many Chinese cities eroded trust in the oil and gas brands, however. And a corruption investigation against PetroChina officials also hurt that brand. The brand value of the oil and gas category grew 8 percent in the BrandZ™ ranking.