The Changqing shale oil field in Northwestern China has produced a cumulative 20 million tons of crude, Chinese media reported, noting the amount marks the start of a new phase in domestic oil production.
The amount, equal to some 146.6 million barrels, is notable mostly because of the challenging geology of China’s shale deposits, which has made it more difficult to tap the oil and gas resources in them. However, on Beijing’s orders, the industry has delivered, boosting domestic production of both oil and gas considerably, notably from shale basins.
The Changqing field accounted for over half of China’s shale oil production in 2024 and is currently producing at a rate of 10,000 tons daily, equal to some 73,300 barrels daily. This does not sound like a whole lot, but CNPC, which operates the field, is constantly working to boost its output, planning an annual average of over 3.5 million tons for this year. The amount would be equal to some 2.56 million barrels. The Changqing field has proven reserves of over 1 billion tons of crude oil.
Because of the complicated geology, it took years for the field to achieve a cumulative production of 10 million tons. More specifically, it took 12 years. Doubling that to 20 million tons, however, only took three years, the People’s Daily reported. Thanks to that production boost, China’s total shale oil output last year booked a 30% increase on the year to 6 million tons, or some 44 million barrels in total. The country’s total crude oil production hit 213 million tons in 2024.
CNPC is not the only one working on ramping up shale production. Such efforts are underway across basins. Earlier this year, China’s authorities certified over 1.4 billion barrels of new reserves at several shale plays operated by the state-owned major Sinopec.
By Irina Slav for Oilprice.com
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