Screenshot of CCTV News

China's first national-level shale oil demonstration zone in Jimsar county, Northwest China's Xinjiang Uygur Autonomous Region, has achieved a new annual output record with 1.7 million tons of crude produced year-to-date, CCTV News reported on Tuesday.

In aggregate terms, the demonstration zone, operated by China National Petroleum Corp (CNPC), has seen its output exceed 5.3 million tons, the report said.

Shale oil is an emerging oil and gas resource with significant development potential, yet it is widely recognized in the industry as challenging to extract. The demonstration zone is located in the eastern part of the Junggar Basin, covering an area of 1,278 square kilometers, with oil reservoirs buried at depths of more than 3,800 meters.

Since 2020, production capacity construction in the demonstration zone has accelerated, with a cumulative total of 472 new wells drilled. The annual output of the demonstration zone has increased from 116,000 tons in 2019 to 1.7 million tons this year, completing the output target 22 days ahead of schedule, Wang Haiming, a senior engineer with CNPC at the oilfield, was cited as saying. 

China's crude oil output is expected to reach a record high of 215 million tons in 2025, according to a separate CCTV News report on Tuesday, citing the latest data from the National Energy Administration. 

During the 14th Five-Year Plan period (2021-25), China has achieved substantial results in oil and gas exploration, with production maintaining steady growth. The progress has driven China's oil and gas sector into a new stage of development, featuring improved performance both in output and efficiency, while adopting greener development practices, according to the report.

During the 14th Five-Year Plan period, China's newly added crude production capacity grew by 105 million tons per year. About 60 percent of the increment came from marine oil finds, the NEA said.

In January, the NEA vowed to keep the country's crude production steady at more than 200 million tons and maintain a steady expansion in natural gas production in 2025, in an effort to secure energy supply, officials said at a meeting. 

Global Times