China’s Jiyang shale oil demonstration base exceeds 2 million tonnes output with breakthrough domestic technologies

Xinhua News Agency states that China’s first national shale oil demonstration zone for continental faulted basins has achieved a cumulative output of over 2 million tonnes as of May 26. Operated by Sinopec, the Shengli Jiyang Shale Oil National Demonstration Zone marks a major leap forward in the exploration and development of low and medium maturity shale oil in China.

The demonstration zone has outpaced its official targets one year ahead of schedule, forming a mature and efficient development model tailored to complex continental faulted basin geological conditions. Operational data shows strong and stable production capacity across the zone. A total of 59 wells have recorded a peak daily output exceeding 100 tonnes, with the highest single-well daily output reaching 263 tonnes. Annual production has grown steadily from 131,000 tonnes in the initial stage to 700,000 tonnes in 2025.

Shale oil is a critical unconventional hydrocarbon resource with extensive exploration potential in China. The country has built a multi-base shale oil production layout covering Jimsar, Gulong, Qingcheng and Jiyang. Officially launched in 2022, the Shengli Jiyang demonstration zone holds proven reserves of 327 million tonnes and an estimated resource volume of 10.5 billion tonnes, laying a solid resource foundation for long-term large-scale exploitation.

Continuous technological iteration drives efficient and cost-effective industrial progress. The professional research team has developed six core technical systems covering three-dimensional reservoir development, high-efficiency drilling and balanced fracturing. Major efficiency upgrades have been realised in field operations. The drilling cycle for 6,000-metre deep wells has been drastically shortened from 133 days to 17 days.

Technical breakthroughs have greatly improved single-well productivity and equipment independence. The average cumulative expected output per well has surpassed 43,000 tonnes, while the domestic production rate of core equipment has risen above 95 per cent. These innovations effectively address the technical challenges of developing low-maturity shale oil in complex continental faulted basins, a long-standing global industrial difficulty.

The technological and operational experience accumulated in the Jiyang demonstration zone will support the scaled and high-quality development of China’s unconventional oil resources. Further technical optimisation and equipment upgrading will continue to unlock domestic shale oil potential, enhance energy exploitation efficiency and consolidate the stability of the national energy supply system.