Shale oil in China has formed a battlefield of 100 million tons of storage. It is expected to become an important strategic support for energy security

PetroChina announced on February 28 that the Guandong area of Dagang Oilfield of PetroChina has formed a battlefield for increasing reserves of shale oil of 100 million tons. By the end of 2019, a new production capacity of 110,000 tons and an annual output of 50,000 tons will be built, which marks that PetroChina has taken the lead in industrializing the development of Continental shale oil in the Bohai Bay Basin and is of great significance for guaranteeing national energy security and economic development.

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Shale oil refers to the petroleum resources contained in shale series dominated by shale. These include oil in shale pore and fracture, and oil resources in dense carbonate or clastic rock adjacent layers and interbeds in shale series.

From the international point of view, marine shale oil is mainly developed in foreign countries. After nearly 10 years of exploration, commercial development of marine shale oil in the United States has exceeded conventional oil, which has an important impact on the world’s political and economic pattern. Continental shale oil is mainly developed in China. At present, exploration and development has just started, and there is no successful experience to draw lessons from.

According to IEA International Energy Agency, China is rich in shale oil resources, with recoverable resources of about 4.5 billion tons, second only to Russia and the United States, ranking third in the world, and is an important strategic alternative resource in the future. In recent years, PetroChina has conducted pilot tests in Bohai Bay Basin, Songliao Basin, Ordos Basin, Junggar Basin and other large sedimentary basins, increased investment in risk exploration, listed shale oil as one of the four major exploration areas, and listed Dagang Oilfield, Xinjiang Oilfield, Tuha Oilfield and Changqing Oilfield as important demonstration areas for shale oil development.

In 2013, Dagang Oilfield acquired shale oil flow in Bohai Bay. After that, we continued to accelerate the pace of shale oil exploration, cracked the restricted area of conventional oil exploration concepts through concept innovation, successfully positioned the main battlefield of continental shale oil exploration and development. Two horizontal shale oil wells, Guandong 1701H and Guandong 1702H, produced steadily for more than 260 days and accumulated thousands of square meters, thus realizing the industrialized development of continental shale oil, which not only made up for the academic research of continental shale oil at home and abroad. The gaps in this field have promoted the further enrichment and perfection of the discipline system, and also realized the rapid development of key technologies and supporting technologies for exploration and development of continental shale oil.

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PetroChina has intensified shale oil exploration and development in Bohai Bay, Ordos and Junggar Basins. We will strive to make the exploration and development of shale oil in Dagang Oilfield a national demonstration project. The first step is to implement reserves and consolidate the foundation. By the end of 2019, new capacity of 110,000 tons and annual oil production of 50,000 tons will be built, which will lay a solid foundation for building demonstration zones. The second step is to establish standards and build demonstrations. By 2022, a demonstration area for exploration and development of continental shale oil in China will be built to drive the exploration and development of shale oil in the eastern part of China. The third step is to scale up production and lead development. By 2025, the total reserves will be increased by 300 million tons, the new production capacity will be 1 million tons, and the annual oil production will be 500,000 tons. A set of effective development methods will be innovated to provide experience for China’s shale oil revolution and guide the development of China’s petroleum continental shale oil.

China is the second largest oil consumer in the world. In 2018, crude oil dependence exceeded 70%. Zhao Xianzheng, general manager of Dagang Oilfield, said that the breakthrough in shale oil exploration and development in Dagang Oilfield opened the door to shale oil underground treasures, opened a new way for high-quality sustainable development of old oilfields, accelerated the pace of industrialized development of shale oil in China, and is expected to become an important strategic support for ensuring national energy security.

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