Leading Drillers Boost Low-Carbon Technologies to Cut CO2 Emissions
China’s Oil Giants Accelerate Shift Toward Cleaner Energy
China’s national oil companies are ramping up their transition to cleaner energy, prioritizing the efficient use of fossil fuels while integrating oil, gas, and renewable energy sources, according to industry executives and experts.
This strategic pivot aligns with China’s dual goals of ensuring energy security and achieving carbon neutrality by 2060, they noted.
During the Two Sessions—China’s annual meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC)—several NPC deputies advocated for policies that accelerate the low-carbon utilization of fossil fuels through technological innovation and coordinated support.
Dai Houliang, an NPC deputy and chairman of China National Petroleum Corp (CNPC), called for policies promoting the large-scale development of unconventional resources, such as shale gas and coalbed methane (CBM).
CBM, an unconventional natural gas resource found in China’s coal-rich basins—including Ordos, Sichuan, and Junggar—boasts estimated reserves exceeding 40 trillion cubic meters.
Expanding the share of natural gas in China’s energy mix could reduce reliance on more carbon-intensive fuels, significantly lowering overall emissions, Dai said.
He also emphasized the need to integrate oil and gas operations with renewable energy sources such as solar and wind power, supporting direct green electricity supply and promoting localized renewable energy consumption.
To facilitate the transition toward a high-renewable energy mix, Dai underscored the importance of advancing energy storage technologies to enhance grid flexibility.
Major Solar Project to Power Green Transition
Earlier this month, CNPC commissioned its largest-ever solar power project in the Tarim Oilfield in Xinjiang Uygur Autonomous Region. The electricity generated will be transmitted via the national grid to eastern China, helping to ensure a stable supply of green energy.
The project is expected to produce 2.1 billion kilowatt-hours of clean electricity annually and will power CNPC’s 1.2 million metric-ton-per-year ethylene plant entirely with green energy. This move will help alleviate local power shortages during peak demand while improving the regional energy mix.
The Role of Fossil Fuels in China’s Energy Transition
While China is accelerating the construction of large-scale wind and solar power bases, particularly in arid regions, industry experts note that oil and gas will continue to play a crucial role in the country’s energy mix over the medium to long term.
Given this reality, the efficient utilization of fossil fuels alongside the integration of renewables remains essential to avoid disruptions during the transition.
Wu Mouyuan, vice president of CNPC’s Economics and Technology Research Institute, stated that fossil fuels will continue to serve as both a safety net and a key resource in China’s evolving energy landscape.
“While non-fossil fuels will become the backbone of China’s energy supply, oil and gas will remain indispensable for decades to come,” Wu said.
Currently, oil and gas account for 18% and 9% of China’s energy mix, respectively. By mid-century, renewables are expected to dominate, comprising nearly 80% of the energy portfolio, according to projections from CNPC’s research institute.
China has also been expanding its unconventional energy resources, with significant advancements in shale gas and CBM extraction reshaping the country’s resource landscape. Future breakthroughs in low-maturity shale oil and underground coal gasification could unlock vast untapped potential in the coming decades, Wu added.
Advancing Green Refining and Chemical Industries
Dai further recommended upgrading China’s refining and chemical sectors, with supportive policies to encourage the development of sustainable aviation fuels, biodiesel, and biobased chemicals.
“The refining and chemical industries are undergoing a transformation toward high-end, green, and low-carbon development,” he said.
China should continue expanding domestic production of high-performance synthetic materials and specialty chemicals, increasing the share of low-carbon and zero-carbon petrochemical products, he added.
