China has discovered potentially up to 107 million tonnes of crude oil in its central region, as authorities step up efforts to strengthen energy security and reduce dependence on oil imports. This amount is equivalent to more than half of the national production in 2023.
The existence of the rich oil field was confirmed during drilling in Henan province’s Sanmenxia basin, and the estimated size was released by the China Geological Survey under the Ministry of Natural Resources, state-run Henan Daily said.
“This field has the basis for building a new oil and gas resource base,” party spokesperson CCTV said, calling the discovery a milestone in 50 years of oil and gas exploration carried out in the state. He said that there is.
Crude oil is unrefined petroleum extracted directly from the earth and is widely used in the clothing, chemical, medical, and aerospace industries.
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China relies on imports from abroad for more than 70% of its crude oil needs, importing 564 million tonnes last year, an 11% annual increase from 508 million tonnes in 2022, according to customs statistics.
The United States is also among China’s top 10 crude oil sellers, and China imported 14.28 million tons of crude oil from the United States last year, accounting for 2.5% of total imports.
In the face of external uncertainty, the world’s largest oil buyers are stepping up their search for domestic oil sources.
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While energy security is at the center of policymakers’ risk-aversion strategies, some analysts expect China’s oil demand to ease as the Chinese government promotes new energy sources.
According to the report, the oil discovered in Henan province is a light crude oil that does not contain water and is relatively easy to refine.
“This discovery accounts for nearly one-third of China’s current total oil and gas production. This is a significant amount and is an important discovery for China, which is highly dependent on foreign crude oil.” Executive Chairman Peng Peng said. Member of Guangdong Provincial Reform Association.
The Chinese government’s focus on developing the “new three types” of electric vehicles, lithium batteries, and solar cells to boost economic growth will help reduce China’s oil demand and align with the country’s carbon reduction goals. Mr. Peng said.
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“Coupled with the fact that China is also exploring new types of fossil fuels such as shale gas and flammable ice, China’s oil demand will reach a tipping point,” Peng added.
China produced the equivalent of 390 million tons of oil and gas last year, of which 208 million tons was crude oil, according to data released by the National Energy Administration earlier this month.
According to the latest data from the Ministry of Natural Resources, China’s oil reserves in 2022 will be approximately 3.8 billion tons, accounting for approximately 1.58% of the world’s reserves and ranking 13th in the world.
Its reserves are only 9% of the reserves of leading country Venezuela, and 10% of those of second-largest Saudi Arabia.