China's State Firms Expand Ultra-Deep Drilling in Xinjiang and Sichuan to Cut Import Dependence
China's state oil companies are accelerating ultra-deep extraction to improve energy security, trading higher technical costs for reduced import reliance. Primary records from the Ministry of Natural Resources and company reserve certifications confirm the scale of commitments in Xinjiang and Sichuan. The move reflects standard state calculus of supply control versus economic efficiency.
Next reporting cycles from CNPC and Sinopec will disclose 2025 drilling footage targets and cost-per-meter figures. These metrics will reveal whether the current acceleration sustains or whether marginal returns prompt reallocation toward shale oil basins with lower depth requirements.
CNPC: Ultra-deep oil-equivalent output from Hade-Fuman exceeds 35 million tons by end-2026
Sources (2)
- [1]Ministry of Natural Resources Reserves Validation Notice(https://www.mnr.gov.cn/dt/ywbb/202405/t20240520_0001.html)
- [2]Sinopec Corporate Announcement May 2024(https://www.sinopec.com/listco/en/Resource/Pdf/2024/20240520.pdf)