In May 1980 Qilicun Refinery built up a suit of thermal cracking installation with 30 thousand tons per year. According to the production practice, the leading group of the construction decided to set up a further liquefied petroleum gas production line, and at the end of 1981 a suit of liquefied petroleum gas auxiliary production line, 220 tons per year, was built and put into operation.
During July 21 and August 5, 1982, Jiaoli, consultant of Ministry of Petroleum Industry, led a 17 people group investigation on planning the exploration and exploitation of northern Shaanxi oilfields, came to Yanchang Oilfield to investigate and study, with teams from provincial petroleum and chemical industry bureau and Yan’an prefectural Party committee along with him. From 6 to 8 August they held a symposium on the planning of Yanchang Oilfield development. Principals and professional cadres from Ministry of Petroleum, provincial planning commission, provincial petroleum and chemical industry bureau, and from Yan’an district and Yanchang Oilfield, took part in the meeting. The meeting carefully studied the development policy of Yanchang Oilfield, programmed goals and implementing means, and discussed the urgent issues of Ministry of Petroleum, Shaanxi province and Yanchang district. They reached a summary, and formulated the historical measure on “mobilizing the positivity of every aspect to raise fund”. This is called the beneficial policy of “Supporting the enterprise via oil, combining mining with refining, and rolling developing” which greatly pushed the development of Yanchang Oilfield.
According to the gist of the meeting, the first drilling and production company in China was set up at Wangjiachuan of Yanchang county in 1985. The drilling and production company exercised such principles as “On the bases of existing wells, initiate new beginning on loan” and “integral planning of resources, integral geological explorations, integral processing of crude oil, integral instruction of electrical measurement of fracture, integral management of industry”, and also practiced such methods as “individual planning, production gathered into one total, achievements attributed to the mine, and benefits attributed to the county”.
The petroleum industry of northern Shaanxi has gradually developed into a multilevel exploitation structure.
The first county level drilling and production company in China was set up at Wangjiachuan of Yanchang county in 1985. In the middle of 1980s the former Ministry of Petroleum consigned the exploitation of crude oil resource in Yan’an district to Yanchang Oilfield Administration Bureau, to reach an integral management, production and business operation. With the approval on local contracts of mining that benefits local areas, it applied such principles as “on the bases of existing wells, initiate new beginning on loan” and “integral planning of resources, integral geological explorations, integral processing of crude oil, integral instruction of electrical measurement of fracture, integral management of industry”, to the drilling and production companies, and also practiced such methods as “individual planning, production gathered into one total, achievements attributed to the mine, and benefits attributed to the county”. Yanchang Oilfield consigned some old wells at the edge of oilfield and some of the low production wells to the county or city level operators, and thus formed the multilevel exploitation of crude oil.
In March 1985 Yongping Refinery began the installation of 70 thousand per year catalytic cracking device, and completed in May 1986, and put into operation on October 25 1986 when oil gushed. Its daily amount of catalytic processing met the designed goal on September 4, 1987, with the highest as 283 tons, 121.5% of the designed capacity. It is also the first suit of full heavy ill concentric (coaxial) catalytic cracking installation in China, and filled the blank of small scale normal pressure residual oil catalytic cracking.
Yongping Refinery intensified the technology reform in 1986, and remolded the normal pressure distillation installation and catalytic cracking installation. It developed in 1987 the 70# unleaded gasoline, and became the first refinery in Shaanxi producing unleaded gasoline.
At 10 am of September 11, 1989, Jiang Zemin, accompanied by Zhang Boxing, secretary of provincial Party committee, Bai Enpei, secretary of Yan’an prefectural Party committee, visited the fen 8 well in Nanniwan Oilfield of Yanchang Oilfield Administration Bureau. He inquired of Yang Yi, senior engineer, about the specific gravity, light oil content in crude oil in the oilfield.