Hangzhou Holdwell

19/03/2025

Growth in Coal Production by Large-Scale Industrial Enterprises Accelerates in the First Two Months

The National Bureau of Statistics recently released statistics on energy production for the first two months of this year. In the first two months, the output of raw coal from large-scale industrial enterprises reached 770 million tons, a year-on-year increase of 7.7%, with the growth rate accelerating by 3.5 percentage points compared to December of the previous year.

In the first two months, the growth rate of raw coal and natural gas production by large-scale industrial enterprises (hereinafter referred to as "large-scale industrial enterprises") accelerated, while the production of crude oil and electricity remained generally stable.

I. Production and Related Information on Raw Coal, Crude Oil, and Natural Gas

Accelerated Growth in Raw Coal Production: In the first two months, the output of raw coal from large-scale industrial enterprises was 770 million tons, a year-on-year increase of 7.7%, with the growth rate accelerating by 3.5 percentage points compared to December of the previous year. The average daily output was 12.97 million tons.

Generally Stable Crude Oil Production: In the first two months, the output of crude oil from large-scale industrial enterprises was 35.04 million tons, a year-on-year decrease of 0.2%. The average daily output was 594,000 tons.

Accelerated Growth in Crude Oil Processing: In the first two months, the processing volume of crude oil by large-scale industrial enterprises was 119.17 million tons, a year-on-year increase of 2.1%, with the growth rate accelerating by 1.5 percentage points compared to December of the previous year. The average daily processing volume was 2.02 million tons.

Steady Growth in Natural Gas Production: In the first two months, the output of natural gas from large-scale industrial enterprises was 43.3 billion cubic meters, a year-on-year increase of 3.7%, with the growth rate accelerating by 0.1 percentage points compared to December of the previous year. The average daily output was 730 million cubic meters.

II. Electricity Production

Slight Decrease in Electricity Production by Large-Scale Industrial Enterprises: In the first two months, the electricity generation by large-scale industrial enterprises was 1,492.1 billion kilowatt-hours, a year-on-year decrease of 1.3%. The average daily electricity generation was 25.29 billion kilowatt-hours, a year-on-year increase of 0.4%.

Production by Type: In the first two months, the growth rate of wind power by large-scale industrial enterprises accelerated, while the growth rates of hydropower, nuclear power, and solar power slowed down, and the decrease in thermal power expanded.

Specifically:

Thermal power by large-scale industrial enterprises decreased by 5.8% year-on-year, with the decrease expanding by 3.2 percentage points compared to December of the previous year.

Hydropower by large-scale industrial enterprises increased by 4.5%, with the growth rate slowing down by 1.0 percentage point.

Nuclear power by large-scale industrial enterprises increased by 7.7%, with the growth rate slowing down by 3.7 percentage points.

Wind power by large-scale industrial enterprises increased by 10.4%, with the growth rate accelerating by 3.8 percentage points.

Solar power by large-scale industrial enterprises increased by 27.4%, with the growth rate slowing down by 1.1 percentage points.

17/03/2025

Comprehensive Analysis of U.S. Iron Ore and Steel Production

I. Analysis of U.S. Iron Ore Production

Production Scale and Global Position
2024 Output: The U.S. produced approximately 24.1 million metric tons of iron ore, ranking 8th globally. However, based on iron content, the average grade of U.S. iron ore is only 33.33%, resulting in an actual iron content of about 0.29 billion tons (2021 data), accounting for 1.67% of the global total.

Production Area Distribution: The main production areas are located in Michigan and Minnesota, relying on the transportation advantages of the Great Lakes region, with shipments accounting for more than 90% of total production. For example, in January 2025, iron ore shipments in the Great Lakes region were 2.5 million tons, a year-on-year decrease of 4.7%.

Recent Trends
Production Fluctuations: U.S. iron ore production was 49 million metric tons in 2018, but fell to 24.1 million metric tons in 2024, a significant decline. This change may be related to tightening environmental policies, aging mines, and international market price competition.

International Comparison: The production of countries such as Australia (560 million tons) and Brazil (247 million tons) is much higher than that of the U.S., and the U.S. iron ore grade is lower (33.33% vs. the global average of 47.22%), resulting in higher mining costs.

II. Analysis of U.S. Steel Production

Crude Steel Production Overview
2024 Output: U.S. crude steel production was 79.5 million metric tons, a year-on-year decrease of 2.5%, with a capacity utilization rate of 75.6%, slightly lower than the global average.

Production Structure: Short-process (electric arc furnace) production accounts for more than 60%, relying on scrap steel recycling, while long-process (blast furnace) production is gradually shrinking due to environmental pressures. For example, electric arc furnace companies such as Nucor Steel dominate the market. In 2024, Nucor's revenue was $30.76 billion, but its net profit fell by 55% year-on-year.
Industry Challenges

Profitability Pressure: In 2024, U.S. Steel Corporation's revenue decreased by 13% year-on-year, and its net profit declined for three consecutive years. Some companies (such as U.S. Steel Corporation) had a net profit of only $384 million, a 57% decrease from the previous year.

Policy Impact: U.S. tariffs on imported steel (such as the 25% tariff on Canadian steel in 2024) have pushed up domestic steel prices, but small and medium-sized enterprises have been forced to exit the market due to rising costs, forming a vicious cycle of "price increases-production cuts."

III. The Linkage Between Iron Ore and Steel Industry

Supply and Demand Imbalance
The U.S. steel industry needs about 120 million metric tons of iron ore annually, but domestic production can only meet about 20%, requiring reliance on imports (such as from Canada and Brazil). In 2024, Canada exported about 6 million metric tons of steel to the U.S., accounting for 7.5% of total demand.

Scrap Steel Substitution: The U.S. scrap steel recycling rate is as high as 80-90%, and scrap steel accounts for 60% of steel raw materials, but a decrease in scrap steel exports (such as the 28% export share to Turkey in 2024) may exacerbate the iron ore demand gap.

Future Risks
If the U.S. continues to impose tariffs, it may lead to retaliation from major suppliers such as Canada (such as Canada's C$29.8 billion tariffs on the U.S. in 2024), further disrupting the North American supply chain.

Rising global scrap steel prices (the U.S. is the world's largest scrap steel exporter) may push up the costs of U.S. short-process steel companies, suppressing the recovery of capacity utilization.

Summary

Iron Ore: U.S. production is limited and of low grade, relying on imports, and fluctuations in shipments in the Great Lakes region reflect industry weakness.
Steel: Crude steel production is declining, profitability is deteriorating, and policy intervention boosts steel prices in the short term but suppresses competitiveness in the long term.

Core Contradiction: The combination of insufficient domestic resources and trade protection policies may trap the U.S. steel industry in a "high cost-low growth" dilemma. Future focus should be on whether technological upgrades (such as green steel) and supply chain diversification can break the deadlock.

15/03/2025

Huawei Launches Next-Generation Site Power Architecture and AI Data Center Construction Concepts

March 13, 2025，At the product and solution launch event held during MWC25 Barcelona, He Bo, President of Huawei Data Center Energy and Critical Power Product Line, released the new generation site power architecture "Single SitePower" and the AI data center construction principles "RASTM," aiming to accelerate operators to become energy prosumers and build better ICT energy infrastructure to seize the opportunities of the new AI era.

Next-Generation Intelligent Site Power Architecture: Single SitePower

The newly released "Single SitePower" next-generation intelligent site power solution architecture pioneers a three-level coordination mechanism of "energy-wireless-grid," realizing bidirectional interaction of power flow and information flow from source, grid, load, and storage ends. It supports full-link sensing, visibility, and management, improving site energy efficiency (SEE indicators), power availability (PAV indicators), and reducing site carbon emissions (NCIe indicators).

-Three major features:

Resilience: Huawei builds resilient energy infrastructure across the entire link by integrating wireless and site energy networks to achieve network-source coordination, source-storage coordination, and storage-load coordination.

Green: Through high-voltage series connection, optimizers, intelligent algorithms, and technologies such as AFCI & RSD, Huawei creates green sites and accelerates the realization of green energy value.

Safety: Huawei believes that high-quality safe lithium batteries should be the primary consideration, which can also effectively ensure communication security.

-AI Data Center Construction Principles: RASTM

From general-purpose computing to AI computing, data center construction faces four key challenges: security, uncertainty, rapid delivery, and surging power demand. Through joint innovation with global customers, Huawei has proposed the AI data center construction principles "RASTM," which have three major features:

Reliable: With the soaring value of AI facilities, security and reliability have become core challenges. AI data centers need to ensure full lifecycle security and reliability from dimensions such as architecture, products, intelligent management, and professional services.

Agile: AI data centers need to be flexible and agile, and flexibly respond to the uncertainty and rapid delivery of AI DC demand through functional modularization and electromechanical decoupling.

Sustainable: Data center power supply efficiency will become the main focus. Energy efficiency improvement will shift from focusing on single-machine efficiency to parallel-machine efficiency, and then to the large-scale use of the SECO model.

13/03/2025

Handling Common Failures of Cranes Used in Non-Ferrous Metal Industries

I. Application Areas of Cranes Used in Non-Ferrous Metal Industries

1. Gantry Cranes: Gantry cranes are generally suitable for ports.

2. Overhead Cranes: Overhead cranes are mainly used in mining enterprises, ports, and docks.

3. Tower Cranes: Tower cranes are generally suitable for construction sites, mainly for transporting materials.

4. Cable Cranes: Cable cranes mainly refer to elevator-type cranes such as elevators and freight elevators.

II. Handling Common Failures of Cranes Used in Non-Ferrous Metal Industries

Resolving Switch and Electrical Component Issues:

To resolve switch problems, specific tests are needed before use to check for issues. If a faulty switch is found, replace it immediately. Open the switch housing, confirm that the wiring is connected, and reinstall if there are installation problems. If there are quality problems, purchase a switch of the same model and manufacturer, and ensure the purchased switch is suitable for the circuit before installation.

In addition, regularly check the crane's docking wiring to avoid short circuits. Check all installed parts one by one, and replace any damaged parts in a timely manner. Shorten the motor's running time to prevent overloading from causing excessive motor temperature and resistance burning. Reduce the weight on the crane in a timely manner to reduce the occurrence of main hook resistor failures. To accelerate heat dissipation, shorten the low-gear running time.

Resolving Wheel and Brake Facility Issues:

To address the problem of wheel gnawing, lay steel plates under significantly sunken tracks to improve wheel stability. Also, check the two sets of wheels in a timely manner, and replace them if there are problems, ensuring that the two wheels are the same. Replace soft shaft gears and reducers with uneven speeds in a timely manner.

To prevent brake facility problems, first adjust the brake components in a timely manner to meet the standards. Replace excessively worn brake pads in a timely manner. Clean the brake wheels frequently. After cleaning with kerosene, add appropriate lubricant to prevent jamming. Tighten the nuts to prevent the push rod from separating from the brake. Adjust the brake platform to offset high temperatures by aligning the brake platform and brake wheel.

12/03/2025

February 2025 Sales Statistics for Excavators and Loaders in the Chinese Domestic Market

1. Excavator Sales Statistics:

According to statistics from major excavator manufacturers compiled by the China Construction Machinery Association, 19,270 excavators of various types were sold in February 2025, representing a year-on-year increase of 52.8%. Among these, domestic sales reached 11,640 units, a year-on-year increase of 99.4%, while exports totaled 7,630 units, a year-on-year increase of 12.7%.

In the period from January to February 2025, the cumulative sales of excavators were 31,782 units, reflecting a year-on-year increase of 27.2%. Domestic sales accounted for 17,045 units, a year-on-year increase of 51.4%, and exports amounted to 14,737 units, a year-on-year increase of 7.37%.

In February 2025, 19 electric excavators were sold, including 16 units under 6 tons, 2 units in the 10 to 18.5-ton range, and 1 unit in the 18.5 to 28.5-ton range.

2. Loader Sales Statistics:

According to statistics from major loader manufacturers compiled by the China Construction Machinery Association, 8,730 loaders of various types were sold in February 2025, representing a year-on-year increase of 34.4%. Among these, domestic sales reached 4,505 units, a year-on-year increase of 63%, while exports totaled 4,225 units, a year-on-year increase of 13.2%.

In the period from January to February 2025, the cumulative sales of loaders were 16,650 units, reflecting a year-on-year increase of 16.5%. Domestic sales accounted for 8,211 units, a year-on-year increase of 26.2%, and exports amounted to 8,439 units, a year-on-year increase of 8.33%.

In February 2025, 1,327 electric loaders were sold, including 11 units under 3 tons, 49 units of 3 tons, 829 units of 5 tons, 379 units of 6 tons, 58 units of 7 tons, and 1 unit of 8 tons.

10/03/2025

Weekly News of Major Events in the Construction Machinery Industry - 03/10/2025

Significant Growth in the Mining Machinery Sector, Surge in Global Market Demand

According to Mordor Intelligence, the global mining machinery market reached $98 billion in 2024 and is projected to reach $135 billion by 2029, with a compound annual growth rate (CAGR) of approximately 5.12%. The global mining equipment market exceeds $100 billion. Annual reports from various construction machinery enterprises also indicate significant growth in the mining machinery sector, making it a leader among emerging sectors.

Crane Sales Experience a Cold Start to the Year, Nearly Halved Compared to Last Year

Recently, the sales data for construction machinery in January was released. The impact of holidays and the shifted Lunar New Year on domestic sales and year-on-year growth was significant. Sales of major machinery types all showed a downward trend. Among them, tower crane sales in January were 301 units, a year-on-year decrease of 57.8%, with domestic sales of 189 units, a year-on-year decrease of 68.3%.

Roller Sales in January Hit a 7-Month High

The China Construction Machinery Industry Association released roller sales data for January, with total sales of 1,407 units, the highest in the past 7 months. The year-on-year increase of 24.50% is the highest since 2022, with the main driving force coming from overseas. Throughout 2024, roller exports maintained strong performance, with monthly year-on-year growth rates consistently above 49%, demonstrating robust growth momentum.

CMI Index Continues to Rise, Domestic Construction Machinery Market Accelerates and Heats Up

The China Construction Machinery Market Index (CMI) for February 2025 was 106.68, a year-on-year increase of 13.53% and a month-on-month increase of 5.44%. This indicates that after February, especially after February 10th, most domestic markets saw gradual improvement in project starts after the Lunar New Year holiday. The gradually warming construction demand led to a rapid increase in overall equipment utilization and operating hours. The market is gradually entering a phase of stronger-than-expected rebound.

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07/03/2025

February 2025 Engineering Machinery Market Index Express Report

According to statistics from the China Construction Machinery Association:

In February 2025, the average monthly working hours of major engineering machinery products were 46.4 hours, a year-on-year increase of 70.3% and a month-on-month decrease of 20.7%. Among them: excavators 44 hours; loaders 62.5 hours; truck cranes 54.9 hours; crawler cranes 55.8 hours; tower cranes 22.4 hours; road rollers 13.1 hours; pavers 8.13 hours; rotary drilling rigs 41.1 hours; non-road mining dump trucks 77.2 hours; concrete pump trucks 11.2 hours; mixer trucks 20.4 hours; forklifts 54.9 hours.

In February 2025, the monthly operating rate of major engineering machinery products was 44.6%, a year-on-year increase of 12.3 percentage points and a month-on-month decrease of 6.22 percentage points. Among them: excavators 47.3%; loaders 50.9%; truck cranes 58%; crawler cranes 53.6%; tower cranes 22.9%; road rollers 22.8%; pavers 19.8%; rotary drilling rigs 35.8%; non-road mining dump trucks 33.8%; concrete pump trucks 14.1%; mixer trucks 16.2%; forklifts 47.6%.

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04/03/2025

Weekly News of Major Events in the Construction Machinery Industry - 20250304

1. Lubricant and Tire "Industry Oscars" Announced Simultaneously

On February 28, 2025, at the Shenzhen World Exhibition & Convention Center (Bao'an), the highly anticipated "LubTop2024 China Lubricant Industry Annual General Evaluation List" and "ApexTire2024 China Tire Annual Selection" were announced.

The dual-list selection activities were jointly initiated by China Lubricant Information Network and China Tire Business Network, with the support of the Kyushu Automotive Ecological Expo and numerous authoritative organizations and mainstream media. At the event, senior executives from Fortune Global 500 brands, CEOs of listed and well-known companies, industry experts, leaders of award-winning companies, and Chinese and foreign guests gathered to witness this glorious moment and discuss in depth the upgrading and development path of the entire automotive aftermarket industry chain under the wave of AI and the green revolution.

2. Foreign Construction Machinery Brands Release 2024 Financial Reports, Multiple Companies See Revenue Decline

Recently, many foreign construction machinery brands have successively released their fourth-quarter and full-year performance reports for 2024 (fiscal year). With the exception of Komatsu, companies such as Caterpillar, Volvo, Hitachi Construction Machinery, and Case have all experienced varying degrees of decline in revenue or net profit.

Sales declines occurred in North America and Europe due to decreased demand, changes in dealer inventory, and low business confidence, while the European market saw reduced sales due to terminal market saturation. At the same time, Latin America and the Asia-Pacific region, particularly the Chinese market, showed growth momentum.

3. Zoomlion Accelerates Global Layout, Building Intelligent Aerial Work Platform Factory in Hungary

Recently, a press conference for the Zoomlion Hungary Aerial Work Equipment Production Base project was held at the Hungarian Ministry of Foreign Affairs. According to the press conference, Zoomlion will invest in building a modern intelligent aerial work machinery factory covering an area of approximately 250 acres in Hungary. The layout and construction of this factory is a vivid practice of Zoomlion's implementation of the "Belt and Road" initiative, which will help to further enhance the depth of Zoomlion's development layout in Europe and better integrate into the local industrial system.

03/03/2025

January Forklift Sales Analysis: Exports Set New Record for 11th Consecutive Month

January's sales figures for powered industrial vehicles (forklifts) have been released. After setting historical monthly sales records for ten consecutive months, this month finally showed a slight "fatigue." Sales of 93,648 units fell short of the 110,695 units sold in the same period last year, ranking second in historical data for the same month, with a year-on-year decline of 15.4%. This can largely be attributed to the impact of the Spring Festival, which led to a decline in the domestic market—domestic sales of 54,950 units, down 24% year-on-year.

However, looking at the historical data for the same period, excluding last year's 110,695 units, this January's 93,648 units still surpass all other historical data for the same month!

In other words, the forklift market has been in a long-term growth phase, increasing nearly threefold from 337,000 units in 2014 to 1.29 million units in 2024, and still shows no signs of peaking.

Export sales have seen even more remarkable growth, quadrupling from 93,000 units in 2014 to 480,000 units in 2024! This January marked the 11th consecutive month of setting a new sales record for the same month.

The ability to maintain such strong momentum is, of course, closely related to continuously growing market demand. The demand for forklifts is widely distributed across various industries, and the development trends of these industries are the key drivers of the continued growth of the forklift market.

First, there is the manufacturing industry, which covers a wide range of sectors such as automobiles, electronics, and machinery. The transportation of raw materials, components, and finished products during the production process relies heavily on forklifts. With the continuous expansion of the manufacturing industry, the scale of factories and output increase, and the demand for forklifts naturally rises. Especially in the context of industrial upgrading, the concept of lean production prompts enterprises to optimize logistics processes, placing higher demands on the efficient and accurate handling capabilities of forklifts, further stimulating demand growth.

Secondly, the logistics and warehousing industry has experienced explosive growth due to the booming development of e-commerce. The massive inflow and outflow of goods in and out of warehouses require a large number of forklifts for loading, unloading, stacking, and sorting operations. The popularity of automated stereo warehouses has further increased the intensity and efficiency requirements of forklift operations, requiring not only ordinary forklifts but also specialized forklifts such as high-level forklifts and narrow aisle forklifts to meet different warehouse layouts and cargo storage methods.

In addition, large supermarkets and warehouse-style stores in the retail industry also rely on forklifts for tasks such as stocking shelves and replenishing goods. With the continuous prosperity of the consumer market, retail enterprises continue to expand their business scale, and the number of new stores increases, and the demand for forklift configuration also rises.

In summary, the strong demand for forklifts from manufacturing, logistics and warehousing, retail, and construction industries is the fundamental reason for the continued growth of the forklift market.

25/02/2025

AI+Deeply Penetrates the Oil and Gas Industry

In today's era of booming technology, the oil and gas industry is embracing artificial intelligence with a positive attitude, and a profound and far-reaching transformation is accelerating within the industry. Leading companies such as China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec), and China National Offshore Oil Corporation 1 (CNOOC) have introduced the DeepSeek large model, and recently, the potential applications of related algorithm achievements in geophysical basic research in the oil and gas field have also attracted the attention of the industry. This industrial revolution driven by intelligent technology is reshaping the underlying logic of the business world.

Giants Lead the Way: Large Models Reshape the Oil and Gas Business Landscape

CNPC took the lead in starting the deep integration process, closely combining the Kunlun large model with DeepSeek. The completion of private deployment on February 8 injected strong momentum into the Kunlun large model. In the "Industry Experts" Q&A application, the newly added DeepSeek deep reasoning function has greatly upgraded the user experience. Whether it is a complex geological problem in oil and gas exploration and development, or an optimization strategy for refining processes, users only need to switch to the "Deep Thinking" mode to obtain accurate and in-depth answers, as if they have a professional intelligent consultant in the oil and gas field.

At the model application level, the DeepSeek-V3 and DeepSeek-R1 model versions launched on the AI ​​mid-platform model square realize full-size adaptation, which greatly meets the needs of different business scenarios in the oil and gas industry. In the exploration and development stage, the model can use data analysis to predict potential oil and gas reservoir locations; in the production and operation stage, it can monitor equipment status in real time and give early warnings of failures; in terms of marketing, it helps companies accurately grasp market trends and formulate more effective sales strategies, comprehensively accelerating the construction of "Digital and Intelligent CNPC".

Sinopec has also actively deployed DeepSeek. On February 5, it completed the deployment of DeepSeek in a domestic computing power environment and connected it to the Great Wall large model application system. The advanced reasoning acceleration technology used in the deployment process has almost doubled the efficiency of large model reasoning calculations. Through the compilation of test question sets to comprehensively test DeepSeek-R1, it was found that the model has accurate understanding of oil and gas chemical knowledge and strong ability to identify professional content, which provides strong support for industry data set construction and model training. In the future, Sinopec plans to use DeepSeek to further promote the intelligent upgrading of key areas such as seismic data processing and reservoir development optimization, improve mining efficiency and reduce mining costs.

On February 14, CNOOC's "Haineng" artificial intelligence model platform officially connected to the DeepSeek series models, providing open services to the entire group through private deployment, and was launched simultaneously on the "Haineng" platform web page and CNOOC Mobile Cloud "Haineng Smart Question".

The DeepSeek-R1 671B full version and distilled version models have completed private deployment. This upgrade will inject new momentum into CNOOC's application of artificial intelligence technology. These models will provide development services for multiple application systems such as the CNOOC ERP system and CNOOC Mall through API interfaces, comprehensively and multi-levelly meeting the intelligent needs of different business scenarios. This deployment adopts domestic computing power and provides efficient, accurate, independent and controllable artificial intelligence services for the entire group in the group's internal network environment, maximizing the protection of enterprise data security.

Local Enterprises Explore: Expanding the Boundaries of AI Applications

Enterprises such as Shengli Oilfield, Shengli Petroleum Engineering Company, and Eastern Geophysical Exploration Company are also actively exploring the field of artificial intelligence. Shengli Oilfield's tests found that the DeepSeek-r1 70B version performs well in text classification and intelligent question answering. Although it still has room for improvement in handling complex professional knowledge reasoning tasks, it has accumulated valuable experience for subsequent model deployment.

Shengli Petroleum Engineering Company has deeply integrated DeepSeek technology into multiple products, leveraging its powerful interaction and image understanding capabilities to achieve efficient retrieval of knowledge documents, intelligent dialogue, and real-time monitoring of safe production. For example, at the drilling site, this technology can be used to monitor the operating status of equipment in real time, detect potential safety hazards in time, and ensure production safety.

Eastern Geophysical Exploration Company is committed to using DeepSeek technology to expand the knowledge base of the interpretation system, improve the analysis ability of seismic data, provide more accurate geological interpretation for oil and gas exploration, and enhance the company's competitiveness in the industry.

Algorithm Empowerment: Promoting the Intelligent Upgrading of the Oil and Gas Industry

In January 2025, a research team from the University of Science and Technology of China published a paper titled "Application of Nine-Component Mutual Correlation Algorithm under CUDA Acceleration in Seismic Background Noise Signal Processing". The accelerated advanced superposition algorithm has been successfully applied to experiments such as imaging of demonstration mining areas, imaging of fault zones, and imaging of regional structures. Industry experts said that although the open source algorithm program is mainly used for seismic signal processing, its efficient parallel computing capabilities and advantages in processing complex data make it have potential application value in seismic exploration and reservoir monitoring in the oil industry.

Similar to the development technology logic of the DeepSeek large model, related papers believe that compared to stacking more CPU cores or relying on large-scale clusters, a single GPU workstation can often obtain higher computing throughput per unit of energy consumption, which not only saves costs (according to Google Cloud's quotation, the cost of using CPU-GPU heterogeneous computing is 1/50 of using a pure CPU parallel architecture), but also more green and environmentally friendly. In terms of seismic exploration data processing, traditional CPU computing efficiency is low, which makes it difficult to meet the needs of massive data processing. The nine-component mutual correlation algorithm based on CUDA acceleration, with the help of GPU parallel computing capabilities, greatly improves the data processing speed. The previously time-consuming computing tasks can now be completed quickly, significantly shortening the exploration cycle and improving exploration efficiency.

Efficient data processing brings higher accuracy for reservoir monitoring. This algorithm can more clearly identify formation characteristics, provide accurate basis for reservoir identification and evaluation, help oil and gas companies accurately locate high-quality reservoirs, reduce exploration blindness, and improve resource extraction efficiency. At the same time, because GPU high-performance computing reduces computing resource consumption and saves considerable computing costs, it enhances the company's market competitiveness. In addition, in building underground structure models, this algorithm can process complex seismic data, provide support for scientific researchers to deeply understand underground geological structures, help formulate more scientific oil extraction plans, and promote technological innovation and development in the oil and gas industry.

Industry insiders believe that the integration of the oil and gas industry and artificial intelligence has achieved stage results, but this is just the beginning. With the continuous advancement of AI technology, these innovations will bring more breakthroughs to the oil and gas industry in the future, help the industry move forward steadily on the road to intelligence, and contribute more to ensuring national energy security and promoting the sustainable development of the industry.