This newspaper reports that China National Petroleum Corporation (hereinafter referred to as “CNPC”) recently announced that the cumulative production from China’s first national-level continental shale oil demonstration zone—the Xinjiang Jimusar National Continental Shale Oil Demonstration Zone—exceeded 1 million tons in 2024.

“Shale oil is petroleum that is trapped within shale rocks or fissures, making it one of the most challenging types of oil to extract. As a result, extracting shale oil is often referred in the industry as ‘squeezing’ oil out of cracks in stone.” According to a relevant official from the Geological Research Center of the Jiqing Oilfield Operation Area of Xinjiang Oilfield, China National Petroleum Corporation, the market demand for shale oil continues to rise, driven by factors such as the sustained growth in global energy demand and the depletion of conventional oil reserves.

It is understood that extracting shale oil requires fracturing oil-bearing shale to release the shale oil. Through engineering techniques such as pre-fracturing with carbon dioxide, the reservoir is “broken up,” enabling innovative “extraction” of shale oil. In Xinjiang’s Jimusar National Onshore Shale Oil Demonstration Zone, initial wells were drilled vertically to depths of three to four kilometers, and then horizontal sections were precisely directed laterally into oil-bearing formations measuring 1.5 meters thick, allowing the identification of hydrocarbon resources within the geological “reservoir zones.”

China boasts abundant shale oil resources, primarily concentrated in five major basins—Ordos, Songliao, Junggar, Sichuan, and Bohai Bay—as well as eight smaller and medium-sized basins including Qaidam, Jianghan, and Northern Jiangsu. China’s recoverable shale oil reserves rank third in the world. In Xinjiang, shale oil resources are mainly distributed across three major sag areas: Jimusar, Mahu, and Wucailiwan-Shishugou. The total resource volume exceeds 3 billion tons, offering promising prospects for exploration and development. Among these, the estimated shale oil resources in Jimusar, located in the eastern part of the Junggar Basin, exceed 1 billion tons.

Currently, China has established three national-level shale oil demonstration zones, including the Jiemusar National陆-phase Shale Oil Demonstration Zone in Xinjiang, the Gulong陆-phase Shale Oil National Demonstration Zone in Daqing Oilfield, and the Jiyang Shale Oil National Demonstration Zone in Shengli. In 2023, China’s shale oil production exceeded 4 million tons, reaching a new historical high.

The Jiemusar National Onshore Shale Oil Demonstration Zone in Xinjiang is located in the eastern part of the Junggar Basin, covering an area of 1,278 square kilometers. Proven reserves there exceed 1 billion tons. Recently, its daily production volume surpassed 4,000 tons for the first time, reaching a new historical high. “This year, the number of new shale oil wells planned to come on stream in the Jiemusar National Onshore Shale Oil Demonstration Zone—jointly developed by Xinjiang Oilfield and Tuha Oilfield—has doubled compared to 2023,” said a relevant official from the Geological Research Center of the Jiqing Oilfield Operation Area of Xinjiang Oilfield, China National Petroleum Corporation. Since the beginning of this year, Xinjiang Oilfield and Tuha Oilfield have produced 831,000 tons and 180,000 tons of shale oil, respectively, in the Jiemusar National Onshore Shale Oil Demonstration Zone. “Since 2020, annual shale oil production has nearly tripled.”

According to the plan, by 2025, the national-level continental shale oil demonstration zone in Jimusar, Xinjiang, is expected to be smoothly completed and achieve an annual shale oil production of 1.7 million tons. Of this total, the Xinjiang Oilfield will produce 1.4 million tons, while the Tuha Oilfield will produce 300,000 tons, providing valuable technical insights for the efficient development of unconventional reservoirs across China.