Shandong Province's petroleum equipment sales revenue has ranked first in the country for two consecutive years, with over 80% of the petroleum equipment manufacturing industry concentrated in Dongying. In 2010, there were more than 50 petroleum equipment enterprises with sales revenue exceeding 100 million yuan in Dongying, and more than 20 enterprises with sales revenue exceeding 500 million yuan. At present, the total output value of Dongying's petroleum equipment has accounted for about one-third of the country's total output value. The leading product, the land oil rig, accounts for 26% of the domestic market, the pumping unit accounts for 60%, the special oil pipe accounts for 30%, the oil (electric) pump accounts for 50%, the sucker rod accounts for 25%, the gas generator set accounts for 80%, and the special oil vehicle accounts for 30%. Drilling rigs, pipes, and oil extraction equipment are exported in large quantities to Central Asia and Eastern Europe, while oil pipes are exported in large quantities to Western countries such as the United States and Canada.

As a larger petroleum equipment manufacturing base in China, Dongying has the initial advantage of undertaking the transfer of international petroleum and petrochemical general machinery manufacturing industry:

（1） The product range is complete. After years of accumulation, Dongying's petroleum equipment industry has become a leading player in the same industry in China. Dongying City has formed a product system that focuses on complete sets of equipment such as drilling rigs, drill rods, pumping units, pumping rods, oil and gas gathering pipelines, and special vehicles for oil fields, covering various fields such as geophysical exploration, drilling, logging, cementing, oil production, underground operations, surface engineering, and pipeline transportation. The huge industrial scale and complete product range have enabled Dongying to become the "Eastern Houston" and the world oil capital.

（2） The degree of industrial correlation is relatively high. The Dongying petroleum equipment industry system is relatively complete, integrating research and development, manufacturing, services, and domestic and foreign trade. Through professional division of labor, enterprises have established a symbiotic, complementary, and competitive development model in terms of technical information, raw material supply, product sales channels, and prices. The industrial chain continues to extend, and product development has shifted from low-end to high-end. The company's main business has shifted from manufacturing to engineering services.

（3） Rich entrepreneurial and display platforms. Relying on Shengli Oilfield and Petroleum University, Dongying has abundant talent resources and strong scientific research capabilities in the field of petroleum equipment. At present, Dongying City has established a national economic and technological development zone, a national university science and technology park, and four national high-tech entrepreneurship centers, as well as a national demonstration productivity promotion center. The annual China (Dongying) International Petroleum and Petrochemical Equipment and Technology Exhibition is the only international petroleum event held in oil producing areas and oil equipment bases in China. After the completion of the "China Petroleum Equipment Industry Base International Exchange Center" project, which is currently under construction, it will become a platform and window for China's petroleum equipment to showcase its image and strength to the world.

（4） The transportation network is developed. Perfect transportation facilities such as roads, railways, aviation and ports have built a developed transportation network for Dongying City. In particular, Dongying Port, the national first class open port, will become one of the largest ports with a handling capacity of 100 million tons in 2020, making Dongying have similar advantages with Houston, the world energy capital, which is not available in other major oil equipment manufacturing regions in China.

（5） National strategic support. November 2009 and January 2011. "Yellow River Delta Efficient Ecological Economic Zone" and "Shandong Peninsula Blue Economic Zone" have been upgraded to the national development strategy, and Dongying has become the core city and frontier city of the "Yellow River Delta" and "Blue" strategies respectively. The "Yellow" and "Blue" strategies respectively clarify the goals of establishing a high-end petroleum equipment industry zone and a petroleum industry focus zone in Dongying. In addition, the national strategic emerging industry policies and the intersection and superposition of the three major national strategies have brought unprecedented huge opportunities to the petroleum equipment manufacturing industry in Dongying.