4. China Oil & Gas in 2018: shale gas exploration and development progressed smoothly; oil & gas exploration investment continued to rise
China's Ministry of Natural Resources released "National Oil and Gas Resources Exploration and Production Report (2018)" on Monday, concluded the country's oil & gas exploration and production status for the past year.
1. Oil & gas exploration and mining investment continued to rise
In 2018, the investment in exploration and production of oil and gas (including oil, natural gas, shale gas, coalbed methane and natural gas hydrate) was 63.658 billion yuan and 203.106 billion yuan, up 8.9% and 24.7% year-on-year. 44,000km of 2D seismic survey was applied with an annual increase of 13.5%. 34,000 square km of 3D seismic survey was applied with an annual increase of 3.3%. The country completed 2,555 exploration wells and 21,107 production wells, an increase of 8.4% and 2.0% respectively.
2. New proven reserves of oil and natural gas rebounded
In 2018, the new proven geological reserves of oil reached 959 million tons, a year-on-year increase of 9.4% after two consecutive years of decline. The new proven reserves of natural gas reached 831.157 billion cubic meters, an increase of 49.7%.
3. Oil and gas production increased steadily
In 2018, China's oil production was 189 million tons, down 1.2% year-on-year. Its natural gas output was 141.152 billion cubic meters, a year-on-year increase of 6.4%.
By the end of 2018, there were 1027 proven oil and gas fields in the country (including 746 oil fields and 281 natural gas fields), 5 shale gas fields, 24 coalbed methane fields and 3 carbon dioxide gas fields. The cumulative production of oil was 6.952 billion tons, and the cumulative production of natural gas was 2.07 trillion cubic meters.
4. Important progress has been made in the basic geology of oil and gas
5. Conventional oil and gas exploration has made many breakthroughs in new areas, new fields and new layers
Among all new founds, new discovery of shale oil exploration in the Jidong Sag, Bohai Bay Basin has been made with a new 50 million tons level reserves.
6. Exploration and development of shale gas and coalbed methane made smooth progression
In 2018, China's shale gas exploration and production investment was 13.53 billion yuan, and 40 exploration wells and 285 development wells were completed. The new shale gas proven geological reserves were 124.678 billion cubic meters, a decrease of 66.2% compared with the previous year. The newly added reserves came from the Weirong shale gas field in Sinopec's Sichuan Basin.
China produced 10.881 billion cubic meters of shale gas in 2018, an annual increase of 21.0%. The shale gas exploration of the Jinfo slope in the Nanchuan area of the eastern Sichuan Basin has made a major breakthrough, and the implementation of shale gas geological resources is 196.5 billion cubic meters, laying a resource foundation for the third phase of the Fuling shale gas field.
7. Progress in oil and gas exploration and mining theory and technology
The 3800 meters shallow shale gas fracturing process is becoming more and more mature, and the low-cost fracturing process test has achieved phase results.
8. The oil and gas resources management reform and innovation
The country strengthened the examination and approval management of oil and gas mineral rights. By the end of December 2018, there were 924 exploration rights for oil and natural gas (including coalbed methane and shale gas) with an area of 3,094,600 square kilometers; 774 mining rights with an area of 164,900 square kilometers. Among them, there are 45 exploration rights and 37 mining rights were overseas joint ventures. (ECF News)