【ECF Weekly】CN Prioritizes AI to Boost Industrial Modernization
ECF China Shale Week Report - June 14, 2025
【China Prioritizes AI to Boost Industrial Modernization】 On June 4, China's Ministry of Industry and Information Technology held a meeting focused on advancing artificial intelligence (AI) to support new industrialization. The ministry emphasized accelerating AI innovation, integrating general and industry-specific large models, and improving smart product capabilities. It outlined a roadmap to strengthen computing power, develop high-quality datasets, and foster AI service providers. Key initiatives include promoting AI standards, supporting specialized AI firms, enhancing open-source ecosystems, and ensuring security and ethical governance. China's AI ecosystem now spans all layers, with competitive models and applications in multiple industries driving digital transformation. Exploration & Production 【China's Coal-Derived Gas Output Hits Record High】 China National Petroleum Corporation's coalbed methane subsidiary reported a record daily output of 8.22 million cubic meters of coal-derived gas, with annual capacity equivalent to 30 billion cubic meters or 2.39 million tons of oil equivalent. The Daji gas field, China's first million-ton coal-derived gas field, has doubled its output year-on-year, nearing 2 million tons of annual capacity. Recent breakthroughs include ultra-long horizontal drilling and lifecycle-integrated gas extraction techniques. These achievements signify a major leap in China's unconventional energy development, supported by advancing theories and industry-academic collaboration since 2025. 【Junggar Shale Oil Sets Fracturing Record with 257 Stages】 On June 7, China's Junggar shale oil project completed its first multi-platform batch drilling and fracturing of 2025, finishing 257 stages across seven wells on two platforms. The J2824B-1H well set a new record in Turpan-Hami Oilfield with 44 fracturing stages. Employing the upgraded “Volumetric Fracturing 2.0” technology—featuring long laterals, dense slicing, and CO₂ pre-treatment—the project achieved significant efficiency gains and cost reductions. The initiative supports CNPC’s goal of producing 1.7 million tons of shale oil annually in the Jimsar National Demonstration Zone, with Turpan-Hami contributing 300,000 tons. Technology & Equipment 【Sichuan Ultra-Deep Shale Gas Platform Sets New Records】 Sinopec Southwest Petroleum Engineering successfully completed fracturing operations at Ziye 2 platform, setting multiple new records for the Ziyang block in Sichuan Basin’s ultra-deep Qiongzhusi shale formation. In 26 days, 58 fracturing stages were completed with peak pressures of 118.2 MPa and fluid rates of 23 m³/min. The project, using a zipper fracturing approach and innovative “super high-pressure + high-sand” techniques, demonstrated high efficiency and safety. The team applied integrated geological-engineering strategies and intelligent risk controls, providing a replicable model for shale gas exploration below 5,500 meters in the region. 【SJSI Launches High-Efficiency Shear Control System for BOPs】 In response to stricter API 16D Edition 3 standards, Shanghai Shenkai (SJSI) has unveiled a dedicated shear control system for blowout preventers (BOPs), targeting ultra-deep, high-pressure wells. The system reduces accumulator volume by 35% through specialized high-pressure shear circuits, improving safety and efficiency without over-design. Featuring enhanced explosion-proof control consoles, real-time monitoring, and dual alarm functions, the system ensures secure operation in hazardous zones. SJSI’s large-capacity shear BOP solution enables effective shearing of high-performance drill pipes and casing under pressure, offering a robust and space-saving solution for modern well control needs.
