Image Credit: Reuters
By BO Staff Writer
An oilfield with reserves estimated at over one billion tons has been discovered in North West China. This was announced by China National Petroleum Corporation (CNPC), the biggest oil and gas producer in China.
CNPC further indicated that Qingcheng oilfield’s reserves that were proven in the Ordos basin is 358 million tons. Moreover estimated reserves is predicted to reach 693 million tons.
According to Vice president Li Luguang of PetroChina, which is a subsidiary of CNPC, in this year alone 640,000 tons of oil will be generated by the oilfield. Also three million tons of oil annually is predicted to be produced in the near future.
About 740.97 billion cubic meters of new proven shale gas reserves have been reported by CNPC. This was explored in the Sichuan Basin in Southwest China. CNPC further intimated that the Sichuan Basin shale gas blocks have a reserve proven of 1.06 trillion cubic meters. Production of 7.7 billion cubic meters of shale gas is planned by CNPC for this year. Also plans for the expansion of the output to exceed 10 billion cubic meters by the end of 2020, are underway.
China is the largest consumer of oil in the world. It imported crude oil of 440 million metric tons in 2018. So expanding domestic crude oil production is crucial for China. It has therefore endeavored to increase production by 50 %, thereby upping it by over two million barrels a day for the next five years.
See related article “Discovery of massive oil deposit could be a game-changer for China” by RT Business News.