Analysis of the status quo, progress and pattern of oil and gas exploration in China in 2021

2. Market structure

In terms of the proportion of capital investment in the oil and gas exploration market, although the overall capital of oil and gas exploration in China fluctuates greatly, the proportion of the total capital of geological exploration in China shows a steady growth. According to the data, the proportion of capital investment in oil and gas exploration in China increased from 60.2% in 2010 to 82.7% in 2019, and in 2020, it is affected by the decrease of capital investment. The main reason for the small decline in the proportion of oil and gas exploration (mainly for mineral exploration) is the continuous decline in capital investment, on the other hand, it also shows that with the gradual increase in energy demand, the importance of oil and gas exploration continues to increase.

3. Exploration well situation

As far as the situation of oil and gas exploration Wells in China is concerned, the overall situation remains stable. According to the data, the number of new exploration Wells for oil and gas exploration in China from 2016 to 2020 was stable between 2700 and 3000, and 2,956 exploration Wells with a depth of 8.394,200 meters were completed in 2020, an increase of 2.1% and 2.9% respectively.

4. Seismic acquisition

Seismic data acquisition is the main method of oil and gas data and basic conditions in China at present, which can be divided into two types: 2D earthquake and 3D earthquake. Compared with 2D earthquake, 3D earthquake can obtain an additional 3D space data body. The overall technology is more complex and the data acquisition is more comprehensive. The proportion of 3D seismic acquisition length in China continues to increase, and in 2020, the length of 3D seismic acquisition in China exceeds that of 2D earthquakes for the first time, respectively 42,700 km and 30,000 km. It is expected that with the continuous development of 3D earthquakes, the proportion is expected to continue to increase.

5. Exploration progress

China's overall investment in oil and gas exploration is huge. In terms of progress, in 2020, China's conventional oil and gas exploration continues to achieve a number of new achievements in new areas and new layers, and shale gas and other non-traditional oil and gas mineral exploration has made important breakthroughs. Under the background of energy control, the progress of overall oil and gas exploration has a great impact on the overall oil and gas industry and automobiles in China.

V. Competition pattern of oil and gas exploration

1. Market concentration

Oil and gas exploration belongs to the upstream sector of oil and gas industry, and the main market is mainly occupied by state-owned enterprises. According to the exploration expenses of petrochina and Sinopec, petrochina and Sinopec account for 34.4% and 17.5% of China's oil and gas exploration funds respectively. On the whole, the current domestic oil and gas exploration is basically dominated by state-owned enterprises, mainly "three barrels of oil".

2. Analysis of major enterprises

In terms of capital investment of major enterprises, the overall exploration costs of petrochina and Sinopec show an increasing trend, reaching 24.248 billion yuan and 12.4 billion yuan in 2021, respectively, an increase of 25.4% and 27.8%, mainly due to the continuous rise in crude oil prices to drive the overall prosperity of the oil and gas industry, and the growth of enterprise investment. At present, oil and gas as the top priority of China's energy security, as the overall energy consumption continues to grow, exploration investment will continue to grow.

6. Prospect of oil and gas exploration

The oil and gas industry involves national energy security and is closely related to the lifeline of the national economy, which is highly valued and controlled by government departments. Companies wishing to enter the oil and gas exploration, development and production industry require approval and supervision from authorities at all levels. At present, the competent departments in the industry include the National Development and Reform Commission, the Ministry of Natural Resources, the National Energy Administration, the Ministry of Emergency Management, and the Ministry of Ecology and Environment. In addition, the industry self-regulatory organization for the China Petroleum and Chemical Industry Federation. China's oil and gas dependence on foreign countries continues to increase, the situation of energy security is grim, and the overall investment in oil and gas exploration is expected to continue to increase.

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