For over 10 years, Recon Technology has provided oilfield services and products to automate and enhance the extraction of petroleum in China, including well service, drilling service, production and field service. Recon's specialized proprietary software and hardware manage the oil extraction process in real-time thereby reducing extraction costs.
One of the most important advancements in China's petroleum industry has been the automation of significant segments of the exploration and extraction processes. Recon's technology increases efficiency and profitability for petroleum companies by enabling them to monitor, manage and control petroleum extraction, increase the amount of petroleum extracted and reduce impurities in extracted petroleum.
China is the world's second-largest consumer of petroleum products, third-largest importer of petroleum and sixth-largest producer of petroleum. In the last 20 years, China's demand for oil has more than tripled, while domestic production levels have increased only modestly. China has been a net importer of petroleum since 1983 creating a strong national goal of meeting as much of the country's domestic oil demand as possible.
China's oil and gas industry is dominated by three state-owned holding companies. Two of them, CNPC (SEHK: 0135) and Sinopec (NYSE: SNP) are Recon's primary customers. Recon has provided services to Sinopec since 1998 and CNPC since 2000. Recon has conducted automation projects for about 80% of CNPC and Sinopec's oil and gas fields, covering three of China's four highest producing oil fields in Daqing, Shengli and Xinjiang.
Recon's technology is based on three software copyrights, eight product patents and four pending patents. Recon places a high priority on exploration, design and innovation. Recon also cooperates with the Oilfield Service and Geology Research Laboratory of Nanjing University.
Recon is the first Chinese non-state owned Oil and Gas service company to be listed on Nasdaq.