China Pushes Ultra-Deep Drilling to Secure Domestic Oil and Gas

China is ramping up its efforts to extract oil from ultra-deep reservoirs to strengthen its domestic supply amidst global market instability. PetroChina has already produced over 26 million tons of oil equivalents from wells drilled 6,000 meters deep in the Hade-Fuman oilfield in Xinjiang. This field, the largest desert oilfield in China, now serves as a key site for ultra-deep oil and gas exploration, with a total of 485 such wells drilled so far.

The push for ultra-deep drilling is part of China's broader strategy to reduce its reliance on imported crude oil. Sinopec, another state-owned oil giant, has recently received government approval for a major shale gas project in Sichuan province, with proven reserves of 235.687 billion cubic meters. This marks the creation of China's first ultra-deep shale gas field with reserves exceeding 100 billion cubic meters.

Despite the technical and geological challenges associated with ultra-deep formations, China continues to explore and certify growing volumes of shale oil and gas reserves. This effort is crucial for boosting domestic production and reducing the country's exposure to imported hydrocarbons. While China has a diversified base of suppliers, increasing self-reliance in hydrocarbon energy remains a priority, alongside the growth of alternative energy sources.