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Money Talk

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China Pushes Into Earth's Crust to Secure Energy Independence

Deep beneath the Xinjiang desert, PetroChina has extracted over 26 million tons of oil equivalents from reservoirs buried 6,000 meters underground. As global energy markets remain volatile, Beijing is betting on these ultra-deep, geologically taxing formations to insulate its economy from a heavy reliance on imported crude.

China Pushes Into Earth's Crust to Secure Energy Independence

The Hade-Fuman oilfield serves as the epicenter of this push, now hosting 485 ultra-deep wells. While drilling at such depths presents significant technological and financial hurdles, the scale of production has transformed the site into China’s primary desert-based hub for deep-earth extraction. The focus is not limited to liquid oil; state giant Sinopec is simultaneously opening a massive ultra-deep shale gas play in Sichuan province. Following approval from the Ministry of Natural Resources, the Ziyang Dongfeng field has been certified with 235.687 billion cubic meters of proven reserves. This development marks the emergence of the nation’s first shale gas field exceeding the 100-billion-cubic-meter threshold. By aggressively certifying reserves in these challenging onshore basins, China aims to solidify its energy self-reliance, balancing its massive renewable investments with a revamped strategy for domestic hydrocarbon production.

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