China Forms New State Body to Find Oil and Gas Reserves Deep Underground

By Jace Dela Cruz

Jul 02 2024, 08:50 AM EDT

China has established a new entity that combines national oil producers and state firms to look for ultra-deep oil and gas reserves.

China Launches New State Body for Oil and Gas Reserves

According to Reuters, this initiative, announced by state energy group CNPC on Monday, aims to tackle challenging non-conventional resources and enhance energy security. The new organization aligns with China's President Xi Jinping's call for innovative forces in the energy sector.

Alongside CNPC and Sinopec, the dominant oil and gas producers, the body will include seven other state groups: China Aerospace Science and Industry Corp, Baowu Steel Group, Sinomach, Dongfang Electric Group, and Minmetals.

China Forms New State Body to Find Oil and Gas Reserves Deep Underground — China has established a new entity that combines national oil producers and state firms to look for ultra-deep oil and gas reserves. David McNew/Newsmakers

Ultra-Deep Oil and Gas Exploration in China

This collaboration intends to build an industry chain from ultra-deep oil and gas exploration to development and engineering.

The group will target conventional resources in deep wells, reaching depths of up to 10,000 meters in regions like northwest Xinjiang's Tarim basin, where CNPC and Sinopec are vital players. The focus will also extend to deep shale oil and coal-seam gas resources.