Strategic shale oilfield development will create jobs and enhance regional economic growth significantly
The eastern region of China announced two major shale oilfields discovered by Sinopec which hold 180 million tons of proven reserves. The Xinxing and Qintong oilfields gained confirmation from China’s Ministry of Natural Resources thus marking an important move to find shale oil reserves in the country’s continental rift basins.
Shale oil primarily consists of liquid hydrocarbons trapped in shale rock formations, which can be extracted for refining. It is commonly found in organic-rich shale as well as in interlayers of carbonate rock, sandstone, and siltstone.
This assessment marks the first time that China has utilized its independently developed industry standards for estimating shale oil and continental shale oil system data.
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The future shale oil evaluation framework will advance its technical specifications due to Li Jinggong taking charge of the ministry’s oil reserves assessment team. New oilfields demonstrate promising features which lead to successful start-up production due to their high formation pressures along with natural fracturing quality. Tests indicate these reservoirs could maintain production stability over extended periods.
Boosting energy security
China holds the position of third-largest country regarding recoverable shale oil resources globally because it consumes massive quantities of crude oil. China’s National Energy Administration shows that crude oil production achieved 213 million tons in 2024 along with a 6 million-ton output of shale oil which experienced more than 30 percent yearly growth.
The major discovery improves China’s energy security through domestic oil expansion while advancing its reduction of dependence on imported oil. The strategic development of shale oilfields in this region will generate multiple employment positions that boost regional economic development. Through its advance in shale oil extraction technology Sinopec positions itself to develop new discoveries and enhancements for the energy sector in the future. These successful projects would aid China’s pursuit of carbon neutrality by 2060 through their ability to maintain energy needs while upholding environmental sustainability goals.
