Since its establishment four years ago, the Jimsar national-level shale oil demonstration zone in the Junggar Basin of Xinjiang has developed 306 wells. The project is a joint effort by Xinjiang Oilfield and Tuha Oilfield, both subsidiaries of PetroChina under the CNPC.
According to Chen Yiwei, a geological engineer at Xinjiang Oilfield, the number of newly operational shale oil wells this year has doubled compared to 2023.
Shale oil refers to liquid hydrocarbons trapped in shale rock formations that can be extracted for refining. It is typically found in organic-rich shale, as well as thin layers of carbonate rocks, sandstones, and siltstones.
Chen highlighted the unique challenges of developing shale oil in the Jimsar zone compared to North American reserves. The oil in this region lies at greater depths, has a smaller continuous distribution area, lower maturity, and higher clay content, making extraction more complex.
“Despite these geological and technical challenges, we have achieved this milestone through technological innovation, setting a new benchmark for the efficient development of shale oil demonstration zones,” said Chen.
Lu Linmao, another engineer, noted that the oil recovery rate from high-quality reservoirs in the zone has increased from 44% to 85%, while extraction costs have decreased.
Additionally, experts have developed innovative waste disposal and recycling techniques to minimize environmental impact, Lu added.
China has established three national-level shale oil demonstration zones in Xinjiang, Heilongjiang Province, and Shandong Province.
As per CNPC’s plans, the Jimsar zone aims to achieve an annual shale oil production of 1.7 million tonnes by 2025, with Xinjiang Oilfield contributing 1.4 million tonnes and Tuha Oilfield producing 300,000 tonnes.
China, one of the world’s leading crude oil consumers, ranks third globally in recoverable shale oil reserves.
According to data from China’s National Energy Administration, the country’s crude oil production reached 208 million tonnes in 2023, while shale oil output hit a record-high 4 million tonnes.
