Sinopec, one of the largest Chinese oil and gas companies, has declared a major breakthrough in its energy exploration. On Monday, Sinopec shared even more thrilling news. The Chinese government has formally certified approximately 1.3 billion barrels of new geological reserves discovered at two shale oil hubs. The newly certified reserves are located at the Xinxing field in the Jiyang trough of Bohai Bay basin. They’re hardly unique to that field though—they’re found at the Qintong field in the Subei basin.
The certification stands out as an impressive achievement for Sinopec. It injects enough to prove out more than 730 million barrels of new reserves annually. The company is making smart moves to strengthen its shale oil production capabilities. Its current goal is to pump 40,000 barrels per day by 2030. These new reserves will be important to profitable production that help us meet our supply and production targets. More importantly, they’ll work to redress China’s own energy base.
The Xinxing field is located in the Jiyang trough of the Bohai Bay basin. In contrast, the Qintong field is located in the Subei basin. Together, they are key to Sinopec’s shale oil exploration strategy. The firm’s press release underscored how essential these places are for their work. They are trying to figure out how to exploit previously inaccessible reserves to power America’s future energy needs.
This government-backed certification underscores the potential of China's shale oil plays as significant contributors to the country's energy landscape. By acquiring these reserves, Sinopec strengthens its strategic position in the increasingly competitive global energy market. The decision is a step in the right direction for national efforts to increase energy security and reduce dependence on imported petroleum.