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

China is ramping up its efforts to extract oil and gas from ultra-deep formations, aiming to strengthen its domestic energy supply amid global market volatility. State-owned PetroChina has already extracted over 26 million tons of oil equivalents from reservoirs buried 6,000 meters (19,685 feet) beneath the surface in the Hade-Fuman oilfield in Xinjiang. This field, the largest desert oilfield in China, has seen the drilling of 485 ultra-deep wells, despite the high costs and technological hurdles associated with such depths.

China, the world's top crude oil importer, is accelerating its exploration of domestic resources, including ultra-deep formations and shale reservoirs, to reduce its reliance on imported crude. Sinopec, another state-owned oil giant, has recently received government approval for a major ultra-deep shale gas project in the Ziyang Dongfeng field in Sichuan province. The field boasts proven geological reserves of 235.687 billion cubic meters, making it China's first ultra-deep, 100-billion-cubic-meter-level shale gas field.

Sinopec has been actively exploring and certifying shale oil and gas reserves in China's onshore basins, despite the technical and geological challenges. The push for domestic production is part of China's broader strategy to enhance its self-reliance in hydrocarbon energy, complementing its growth in alternative energy sources.