Key facts
- China is accelerating ultra-deep drilling to boost domestic oil and gas supply.
- PetroChina has produced over 26 million tons of oil equivalents from reservoirs 6,000 meters deep in Xinjiang.
- China has drilled 485 ultra-deep wells at the Hade-Fuman oilfield.
- Sinopec received government approval for 235.687 billion cubic meters of shale gas reserves in Sichuan.
- China aims to reduce its dependence on imported hydrocarbons.
China is intensifying its efforts to extract oil and gas from ultra-deep geological formations to bolster domestic supply and lessen its reliance on imports, according to state media reports. The country is facing continued global market volatility.
State-owned PetroChina has already extracted more than 26 million tons of oil equivalents from reservoirs located 6,000 meters (19,685 ft) below the surface in the Hade-Fuman oilfield in Xinjiang. Reservoirs at this depth are considered ultra-deep, presenting significant cost and technological challenges for drilling.
The Hade-Fuman oilfield has become China's largest desert oilfield and serves as a key base for ultra-deep oil and gas exploration. To date, 485 ultra-deep wells have been drilled there.
In parallel, Chinese state oil giant Sinopec has received official government approval for proven geological reserves of 235.687 billion cubic meters in the Ziyang Dongfeng field in Sichuan province. This marks the establishment of China's first ultra-deep, 100-billion-cubic-meter-level shale gas field. Sinopec has been actively exploring and certifying growing volumes of shale oil and gas reserves in China's onshore basins, despite challenging geological conditions.
This push for increased domestic production is a strategic priority for China, aiming to enhance its self-reliance in hydrocarbon energy alongside its growth in alternative energy sources.