June 7, China still boasts rich oil resources and is likely to discover up to 32.3 billion tons in the future in four specific areas, according to a senior industry researcher.
An estimated 12.2 billion tons of oil are likely to be discovered in eastern regions, accounting for 38% of China s total reserves, while 11.4 billion tons could be uncovered in western areas, an expert from the CNPC Research Institute of Economics & Technology who asked not to be named told the 21st Century Business Herald.
The expert said that up to 8.5 billion tons could be found offshore. Oil reserves located off China s southern coast are seen as strategically important, he added. Oil exploitation in this area is still at its early stage, but it boasts very huge potential.
Around 22.6 million tons have so far been located in the area, the expert said.
He said that China needs to make technological breakthroughs in its oil exploitation capabilities, strengthen research and development and explore new oil reserves.
China s three oil majors are beefing up their exploration efforts while taking steps to ensure stable oil production to meet domestic demand, he said. But their strategies and steps taken vary from one another.
PetroChina Co. Ltd. (601857.SH, 0857.HK) focuses on the second exploitation of explored fields while promoting the application of horizontal well technology.
China Petroleum & Chemical Corp. (600028.SH, 0386.HK) specializes in exploiting additional reserves from explored blocks and improving production capabilities at new blocks.
CNOOC Ltd. (0883.HK) is China s leading offshore oil and gas enterprise, specializing in deep water extraction.
More and more attention is now being shifted from onshore oil to offshore oil, said the expert, which he said indicates a change in domestic drilling patterns.
China s onshore oil resources are mainly located in northern parts of their country, but production has fallen in recent years. The proportion of oil exploited offshore rose from 6.7% of domestic output in 2000 to 11% in 2008.
Meanwhile, oil output in eastern parts of the country has been falling as production surges in western regions.
Currently, oil production has been faring well, and the emphasis is being laid on onshore oil in western China as well as offshore oil, said the expert.
China s oil consumption has soared since it became a net oil importer in 1993 as economic development, industrialization and growing car ownership drive demand. Demand for crude oil in March grew 12.8% year-on-year, the seventh consecutive month of double digit growth.
