Key facts
- China leads the world in renewable energy production, rapidly deploying solar, wind, and battery storage.
- Simultaneously, China is increasing domestic oil and gas output to enhance energy self-sufficiency.
- Government policies aim to reduce reliance on energy imports and shield the country from global disruptions.
- By 2030, China plans to reach 440 million metric tonnes of oil equivalent in domestic production and expand its pipeline network.
- The country is also investing in carbon capture and storage technology as part of its net-zero goals.
China is pursuing a dual energy strategy, significantly expanding its renewable energy capacity while simultaneously boosting domestic oil and gas production. This approach aims to bolster energy security and reduce reliance on imports, even as the country pursues ambitious climate targets.
Recent years have seen a substantial increase in China's fossil fuel output, with record crude production and significant additions to recoverable oil and gas reserves. This surge is driven by government policies designed to enhance self-sufficiency and insulate the nation from global energy market volatility, including price spikes linked to geopolitical events in the Middle East and Russia.
To further mitigate risks, China is strengthening its strategic petroleum reserves, diversifying its import sources away from the Middle East towards regions like West Africa, Latin America, and Russia, and enhancing overland import corridors. These efforts have already led to a decrease in Middle Eastern crude imports and a reduction in overall oil imports.
Looking ahead, China's 15th Five-Year Plan outlines targets to increase domestic oil and gas production to 440 million metric tonnes of oil equivalent by 2030, alongside substantial expansion of its pipeline network and natural gas storage capacity. The country also plans new exploration auctions and technological advancements for deep onshore and offshore resources.
In parallel with its fossil fuel expansion, China is investing in carbon capture and storage technology to support its net-zero ambitions. The government also plans to advance cleantech and domestic energy manufacturing, integrating digitalization into its energy sector. This comprehensive strategy underscores China's commitment to balancing energy security with green development.