According to a press conference held by the Ministry of Natural Resources on April 5: China’s proven reserves of oil and natural gas continue to grow at a high rate. Last year, the country added 1.118 billion tons of newly proven geological reserves of oil and 217 million tons of newly proven technically recoverable reserves. Two oil fields each added over 100 million tons of newly proven geological reserves. For natural gas, the newly proven geological reserves totaled 677.2 billion cubic meters, with newly proven technically recoverable reserves reaching 375.4 billion cubic meters. Two gas fields each added over 100 billion cubic meters of newly proven geological reserves.

Yu Haifeng, Director of the Department of Mineral Resource Reserves at the Ministry of Natural Resources and the Director-General of the Mineral Resource Reserves Division of the Ministry of Natural Resources, stated that by the end of 2015, China’s remaining technically recoverable oil reserves totaled 3.496 billion tons, and its remaining technically recoverable natural gas reserves amounted to 5,193.9 billion cubic meters, providing strong support for economic development.

Even more noteworthy is the rapid growth in China’s shale gas reserves and production. In 2015, the country added 437.3 billion cubic meters of newly proven geological reserves of shale gas and 109.3 billion cubic meters of newly proven technically recoverable reserves. Shale gas production reached 4.471 billion cubic meters, representing a year-on-year increase of 258%.

Previously, Sinopec announced the completion of China’s first shale gas field in Fuling, Chongqing, with an annual production capacity of 5 billion cubic meters. This makes China the third country—after the United States and Canada—to achieve commercial development of shale gas. The field can supply daily gas consumption for 32 million households, and it is expected to develop into a large-scale shale gas field with an annual output of 10 billion cubic meters by 2017.

This is particularly rare against the backdrop of recent years' persistently low international oil prices and declining U.S. shale gas production. Che Changbo, Deputy Director-General of the Geological Exploration Department of the Ministry of Natural Resources, stated that shale gas has played an indispensable role in optimizing China's energy structure, and China will not allow short-term fluctuations in oil prices to affect the development and utilization of unconventional energy sources such as shale gas.

Preliminary exploration indicates that China’s recoverable shale gas resources amount to approximately 31 trillion cubic meters, equivalent to conventional natural gas reserves, representing enormous potential for resource utilization.

In 2015, coalbed methane—a type of unconventional energy—added 2.6 billion cubic meters of newly proven geological reserves and 1.3 billion cubic meters of newly proven technically recoverable reserves. Throughout the year, the nation’s coalbed methane production reached 4.425 billion cubic meters, representing a year-on-year increase of 24.75%.

Meanwhile, it is worth noting that reserves of China’s 16 major solid mineral resources—excluding potash—have all increased. Among these, tungsten ore, tin ore, gold ore, and phosphate rock have seen growth rates exceeding 50%. Newly confirmed resource reserves include: 190 million tons of bauxite, 2.51 million tons of tungsten ore, 52,000 tons of tin ore, 1,307 tons of gold ore, 16,000 tons of silver ore, and 1.58 billion tons of phosphate rock.

In addition, the production of nine mineral types—coal, iron ore, copper ore, lead ore, zinc ore, molybdenum ore, antimony ore, pyrite, and potash—has declined. Among these, the declines in iron ore, copper ore, molybdenum ore, and potash all exceeded 50%.

“One important reason for this is the overcapacity in industries such as coal and steel, which has led to a decline in upstream exploration and mining activities in these sectors,” said Che Changbo.

It is reported that, guided by the principle of “stabilizing oil production, boosting gas development, controlling coal consumption, and increasing uranium production,” China will accelerate the exploration and development of clean and efficient energy resources during the 13th Five-Year Plan period. This effort aims to adjust the structure of resource utilization and development, thereby driving a transformation in the energy mix and revolutionizing energy production and consumption patterns. Oil, natural gas, shale gas, and other such resources will be encouraged, while total control over coal resource development and utilization will continue to be implemented.