Owing to the heavy demand in these products, Yanchang became an important institution in the ‘liberation of China’ especially in the provinces of Shaanxi, Gansu, and Ningxia.

From the second World War until modern day China, Yanchang remained a small enterprise, focused on regional development.

Its small enterprising strategy to operate regionally caused it to grow at a slower pace than other oil companies especially when China started becoming economically competitive globally.

The second “root” is to establish a foothold in Shaanxi Province, by building research and industrial parks, and expanding development to other regions.

The third “root” is to establish a strong foothold in China and to expand operations in foreign markets and be a key oil industry competitor on the global stage.

The second “Propellant” is to constantly upgrade key assets and achieve environmentally sustainable but efficient production methods.

The private investors did not surrender and resorted to peaceful protests, filing legal litigations, petitions, and public campaigns against the Shaanxi provincial government.

According to the source provided by Simply Wall Street, as of mid 2016, Yanchang has reported a record revenue of 23.74 billion Hong Kong dollars.

This limiting factor is the reason why Yanchang Petroleum Group does not have the financial resources to expand its production as aggressively as the other state owned companies.

The most recent large-scale project being undertaken by Yanchang is “Enhanced Oil Recovery Using CO2 in North West China.”[8] This project will focus on the exploration efforts of Yanchang in the Ordos Basin, the second largest sedimentary basin, that covers an area of 370,000 square kilometers encompassing parts of three provinces (Shaanxi, Gansu, and Shanxi) in China.

This project is undertaken as an effort by Yanchang to increase oil exploitation by lowering costs and using “Innovation and Green” methods to tackle climate change.

In 2010, Yanchang Petroleum Group successfully acquired 15% of Sino Union Energy Investment Corporation (Sunpec).

This acquisition will allow Yanchang to exploit hydrocarbon resources in Madagascar, which is located in two oil fields that is currently owned and operated by Sunpec.

[9] In 2014, Yanchang Petroleum Group successfully acquired another major oil producer in Canada, Novus Energy.

[10] Novus Energy is based in Calgary Canada, and is considered a ‘junior’ oil and gas production company.

The reason for this incident according to investigators was caused by the testing of a new method of drilling using thermal technology that would increase oil or natural gas output.

The incident took place 40 km east of Yan’an city in Shaanxi Province, and is considered one of the oldest plants in China.