China’s first national-level shale oil demonstration zone, located in Jimsar County in Northwest China’s Xinjiang Uygur Autonomous Region, has reached a new annual production milestone. According to CCTV News on Tuesday, the zone has produced 1.7 million tons of crude oil so far this year.
Cumulatively, the zone has now yielded over 5.3 million tons of crude since its launch. The project is operated by China National Petroleum Corporation (CNPC).
Shale oil is considered a promising resource in the oil and gas sector, though it remains technically difficult to extract. The demonstration zone is situated in the eastern section of the Junggar Basin and spans 1,278 square kilometers. Its oil reservoirs are located at depths exceeding 3,800 meters.
Since 2020, the pace of development in the area has picked up significantly. A total of 472 new wells have been drilled to date. Annual output has climbed from just 116,000 tons in 2019 to 1.7 million tons this year. According to CNPC senior engineer Wang Haiming, the production goal was met 22 days ahead of schedule.
In a separate update from Tuesday, CCTV News reported that China’s crude oil output is expected to reach a record 215 million tons in 2025, citing the latest data from the National Energy Administration (NEA).
During the current 14th Five-Year Plan period, covering 2021 through 2025, China has made major strides in oil and gas exploration. The country has achieved steady production growth and has pushed the sector into a new phase that combines improved efficiency and greener practices.
According to the NEA, China added 105 million tons of new crude production capacity annually during the current plan period. Around 60 percent of this increase has come from offshore oil discoveries.
In January, NEA officials committed to maintaining national crude output above 200 million tons and to ensuring continued growth in natural gas production by 2025. This initiative is part of broader efforts to enhance the country’s energy security.
