China Unveils National Shale Oil Demonstration Zone at Shengli Jiyang

China has taken a significant step forward in its domestic shale oil sector with the inauguration of its first national shale oil demonstration zone. Located at the Shengli Jiyang oilfield in Shandong Province, this development marks a major advancement for China's shale oil industry.

The project recorded an annual output exceeding 700,000 tonnes in 2025 and holds proven geological reserves of 327 million tonnes. This achievement comes after years of research and development to improve shale oil extraction technologies and overcome technical challenges.

China's total shale oil production surpassed 8.5 million tonnes in 2025, more than ten times the level recorded in 2018. The country aims to replicate efficient production models across the nation through this demonstration zone.