[New Ideas Lead to a New Journey] Innovation breakthroughs in oil and gas exploration and development ensure national energy security.

General Secretary Xi Jinping emphasized the need to "strengthen the domestic exploration and development of important energy and mineral resources, increase reserves and production, speed up the planning and construction of a new energy system, and enhance the country's strategic material reserve capabilities." In order to effectively enhance China's self-sufficiency in oil and gas supply, China has continued to promote stable and increased production of onshore oil and gas, accelerated the exploration and development of offshore oil and gas in deep waters, and vigorously developed unconventional oil and gas. In 2022, China's total oil and gas production reached a historic new high, and oil and gas reserves and production have reached new levels.

This morning (March 26, 2023), Daqing Oilfield announced that the cumulative production of crude oil has exceeded 2.5 billion tons, which is more than one-third of China's total crude oil production during the same period. If these crude oil were loaded onto oil tanker trucks with a capacity of 60 tons each, their combined length would stretch 15 times around the equator of the earth. The typical operating cycle of oilfields like Daqing is around 15 years, and Daqing Oilfield has been developed and operated for 64 years, with an annual production of crude oil still exceeding 30 million tons. This is attributed to continuous innovation in key technologies, which have led to the development of leading oilfield development technology in the world.

In recent years, China's oil and gas exploration and development has achieved significant breakthroughs, with 18 large oil and gas fields discovered in regions such as Xinjiang, Sichuan, and the Bohai Sea. The Bozi-Dabein Gas Field, with trillions of cubic meters of reserves, was discovered in the Tarim Basin, while Shunbei Oilfield drilled the 9,300-meter-deep "Deep Earth No. 1" directional well, breaking the record for the deepest onshore well in Asia and reaching the underground summit of Mount Everest. In the Junggar Basin and the Ordos Basin, high-risk exploration wells have made significant breakthroughs, discovering the billion-ton Ma Lake and Qingcheng Da Oilfield, which are expected to produce enough oil for 7 million automobiles annually. Offshore, exploration and development of oil and gas in ultra-deep waters of 1500 meters or more have been comprehensively advanced. The Deep Sea No. 1 gas field, with proven reserves of over 100 billion cubic meters, was put into production, marking the comprehensive entry of China's offshore oil and gas exploration and development capabilities into the "ultra-deep water era".

In 2022, China's crude oil production reached a historic new high of 205 million tons, and natural gas production exceeded 220 billion cubic meters. Despite being ranked 10th globally in terms of oil and gas reserves, China was the world's sixth-largest producer of oil and the fourth-largest producer of gas. The self-sufficiency rate increased by about two percentage points year on year, further strengthening China's energy security bottom line.

Currently, China is accelerating scientific and technological innovation in the areas of "deep-sea, deep-layer, unconventional resources" and "improving oil and gas recovery rates" to lead the high-quality development of the oil and gas industry. The Fuling Shale Gas Field has proven reserves of nearly 900 billion cubic meters, while construction of the national shale gas demonstration areas in Chongqing's Changning-Weiyuan and Yunnan's Zhaotong is accelerating. The national shale oil demonstration areas in Gulong, Shengli Jiyang, and Jimusaer in Xinjiang have created a good starting point with a shale oil reserve of "10 billion tons and an annual production of 3 million tons".

The National Energy Administration predicts that by 2025, China's annual crude oil production will stabilize at 200 million tons, while natural gas production will continue to increase rapidly to meet China's core oil and gas demand, consolidate the oil and gas security bottom line, further enhance oil and gas self-sufficiency, and ensure national energy security.