Major for China? Massive oil deposit discovered in Asian giant

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BEIJING – The discovery of an oilfield that could hold more than a billion tons of reserves in northwest China was announced by the country’s largest oil and gas producer, CNPC.

According to China National Petroleum Corporation (CNPC), proven reserves in the Qingcheng oil field in the Ordos basin are 358 million tonnes, while its estimated reserves may reach 693 million tonnes.

Vice President Li Luguang of PetroChina, a CNPC subsidiary, said a total of 640,000 tonnes of oil will be produced in the field this year, and annual production is expected to reach 3 million tonnes soon.

The company also reported about 740.97 billion cubic meters of newly added and proven shale gas reserves, which were mined in the southwestern Sichuan Basin.

Expanding Perspective

In addition, the oil company also plans to produce 7.7 billion cubic meters of shale gas this year and expand production to more than 10 billion cubic meters by the end of 2020.

The Sichuan shale gas blocks have a proven total reserve of 1.06 trillion cubic meters, according to the CNPC.

Technological innovations and exploitation of unconventional energy resources such as shale gas will be encouraged, Li Luguang said.

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Developing national crude oil production is critical for China, which is the world’s largest consumer of oil.

In 2018, Beijing imported 440 million metric tons of crude oil. The Asian giant has intensified efforts to increase domestic production by 50%, increasing it by more than two million barrels per day over the next five years.

This comes as back in July, the state-owned company Petroleos de Venezuela (PDVSA) and the National Petroleum Corporation of China (CNPC) expanded the Venezuelan Mezcla José plant in Anzoátegui state.

With that, the Venezuelan plant will produce 165,000 barrels of oil per day, according to Vice President Delcy Rodríguez.

“We can certify that it is ready to produce and increase production from 105,000 barrels per day to 165,000 barrels, an extraordinary achievement, I congratulate CNPC America President Jia Yong, this is one of the largest oil companies in the world and is investing in Venezuela,” the vice president told the Venezuelan state broadcaster.

Rodríguez also stressed that the increase in oil production will strengthen the relationship between the two countries and help the Venezuelan economy.

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