China Breaks Ground in Shale Oil Exploration with Sichuan Basin Discovery

Strategic Insights -

China has scored a major breakthrough in its energy exploration efforts with the discovery of a large shale oil field in the Sichuan Basin, revealing significant reserves of over 100 million tons. The Qiluye-1 well, located in Chongqing's Qijiang district, has been producing 38.64 cubic meters of oil and 10,000 cubic meters of gas daily, making it a high-quality formation that spreads across 1,000 square kilometers. This discovery, combined with the success of the Qijiang shale gas field, has strengthened China's position in unconventional oil and gas development, and has marked a significant step towards the country's goal of securing stable energy supplies.

Key Takeaways:

  • The Qiluye-1 well in the Sichuan Basin has discovered over 100 million tons of shale oil reserves, with production rates of 38.64 cubic meters of oil and 10,000 cubic meters of gas daily.
  • The well reaches a depth of over 2,000 meters underground, with a horizontal section extending beyond two kilometers, and has uncovered nearly 40 meters of oil-rich shale.
  • The shale oil is shallowly buried, easy to extract, and of high commercial value, making it a promising source for future energy growth.
  • China produced 705,000 tons of shale oil in 2024, up 308,000 tons from the previous year, with Sinopec submitting proven reserves of over 200 million tons of shale oil and 12.35 billion cubic meters of gas by 2025.
  • The Sichuan Basin discovery highlights China's growing self-reliance and technical expertise in shale development, with vast untapped resources and advanced drilling capabilities.
  • The success of the Qiluye-1 well, combined with the Qijiang shale gas field, strengthens China's position in unconventional oil and gas development, and enhances the country's ability to sustain long-term oil output and enhance energy security.

Statistics:

  • 38.64 cubic meters of oil produced daily by the Qiluye-1 well.
  • 10,000 cubic meters of gas produced daily by the Qiluye-1 well.
  • 100 million tons of shale oil reserves discovered in the Sichuan Basin.
  • 705,000 tons of shale oil produced in 2024.
  • 308,000 tons increase in shale oil production from 2023 to 2024.
  • 200 million tons of shale oil and 12.35 billion cubic meters of gas proven reserves submitted by Sinopec by 2025.
  • 1,000 square kilometers of shale oil-bearing formation spread across the Sichuan Basin.

Sources:

  • CCTV (China Central Television)
  • Sinopec (China Petroleum & Chemical Corporation)
  • Global Data Point (2022)