Abstract: Abstract This paper briefed the operating circumstances of domestic refining industry in 2005, described the progress inside the petrochemical industry in terms of regionalization, centralization, growth of refinery scale and rising of refining bases, and discussed the top challenges faced by refining industry in terms of resource availability and tightening of environmental regulation. The key elements of establishing both energy and resource saving Refinery Corporation were discussed and proposed too. To achieve this goal, improvements in many areas were involved, such as the adoption of advanced process and engineering technology, adjustment of refining scheme based on the shift of processing more and more imported crudes instead of domestic supplies, deep upgrading of the residue and etc. At the same time, the goal would be achieved by improving the efficiency of utilizing resources and energy, optimizing resources utilization, lowering process water usage, reducing effluent stream and contaminants, as well as boosting the integration with chemical complex, the increase of industry concentration ratio and the employment of large scale equipments.

Key words: petroleum refining process, energy source, environment, review, resource