China's oil and gas exploitation industry analysis and prospect forecast report

The oil and gas exploitation industry is an important pillar of the national economy. The development of the oil and gas exploitation industry is related to the development of the national economy, the national security, and people's lives. With the concern and support of the whole country, China's oil and gas industry has risen rapidly.

In 2020, the global oil and gas industry fell into a slump, but the performance of China's oil and gas industry "outperformed" : the annual total oil consumption reached 702 million tons, refining capacity increased to 870 million tons/year, the diversification of business entities further developed, and natural gas consumption increased by 7.1% year-on-year. The oil and gas industry is in good shape, thanks to China's effective control of the novel coronavirus epidemic and the first to return to positive economic growth. At the same time, the determination of the target of carbon peak and carbon neutrality has further promoted the accelerated transformation of the oil and gas industry.

From a global perspective, under the dual pressure of the epidemic and economic downturn in 2020, primary energy consumption fell by 4.5%, energy-related investment fell by nearly 20%, newly discovered oil and gas reserves fell by 30%, and investors are more cautious about upstream project development. In the same context, China's oil and gas exploration and development has taken the opposite path from foreign countries. Domestic oil and gas production enterprises adjust investment strategies, effectively control costs, oil and gas production reserves have increased. In 2020, China completed 2,956 oil and gas exploration Wells with a depth of 8.394,200 meters, up 2.1 percent and 2.9 percent respectively. Completed 3D seismic acquisition of 30,000km, a decrease of 41.6%; Completed 3D seismic acquisition of 42,700 square kilometers, a decrease of 9.3%. In 2020, the new proved geological reserves of oil and natural gas reached 1.32 billion tons and 1.29 trillion cubic meters respectively. Oil and gas output reached 195 million tons and 188.9 billion cubic meters, up 1.6 percent and 8.9 percent, respectively. In 2021, completed fixed asset investment in the oil and gas extraction sector increased by 4.2% year-on-year, compared with a decline of 29.6% in the previous year.

In January 2022, the National Development and Reform Commission and the National Energy Administration jointly issued the "14th Five-Year Plan for Modern Energy System", proposing that by 2025, the annual comprehensive domestic energy production capacity should reach 4.6 billion tons of standard coal and 230 billion cubic meters of natural gas. The country's intensive gas storage capacity has reached 55 billion to 60 billion cubic meters, accounting for about 13% of natural gas consumption. In April 2022, the Ministry of Education issued the Work Plan for Strengthening the Construction of the Carbon Peak Carbon Neutral Higher Education Personnel Training System, which proposed to strengthen the training of coal, oil and natural gas professionals with a focus on the clean and efficient development and utilization of primary energy. In June 2022, nine departments including the National Development and Reform Commission and the National Energy Administration jointly issued the "14th Five-Year Plan for Renewable Energy Development", which mentioned accelerating the development of biological natural gas; Improve the capacity of local consumption of renewable energy, actively promote the flexible transformation of coal power, promote the active participation of self-owned power plants in peaking, and rationally deploy a number of natural gas peaking power stations in areas rich in new energy resources to fully improve the adjustment capacity of the system; In new urban areas, we will promote the coupling and integration of renewable energy heating with other clean heating methods such as natural gas and electricity, and demonstrate the construction of a multi-energy complementary heating system based on renewable energy heating.

China is rich in oil and gas resources, with extensive exploration fields and regions, low exploration degree and resource conversion rate, and great potential for oil and gas exploration. China's oil and gas storage production growth has entered the peak period, which may last until about 2050. The general trend of future oil and gas exploration and development is: first, the transfer from Cenozoic to Paleozoic; second, the transfer from eastern China to western China; third, the transfer from land to sea; fourth, the transfer from oil to natural gas (including unconventional natural gas); fifth, the transfer from shallow to deep; sixth, the rapid development of unconventional oil and gas fields; and seventh, the development and utilization of foreign oil and gas resources.

The Investment Analysis and Prospect Forecast Report of China's Oil and gas Exploitation Industry released by Heshi Consulting consists of ten chapters. Firstly, the definition, classification, resource distribution, exploration and development of oil and gas are introduced. Then, the status quo of domestic and international oil and gas exploitation industry is analyzed, and the financial data of China's oil and gas exploitation industry is analyzed in detail. Subsequently, the report makes market supply and demand analysis, regional development analysis, import and export trade analysis for the oil and gas exploitation industry. Finally, the future prospect and development trend of the oil and gas exploitation industry are scientifically predicted.