Traditional ChineseRSS

Energy & China

China's Oil and Gas Production Hits 420 Million Tonnes — A New Energy Security Milestone

China's National Energy Administration reported that the country's oil and gas equivalent production reached 420 million tonnes in 2025, a historic high. Thirteen new billion-tonne oil fields and 26 trillion-cubic-metre gas fields were discovered during the 14th Five-Year Plan period, substantially strengthening domestic energy security.

On July 21, 2026, China's National Energy Administration (NEA) released the "China Oil and Gas Exploration and Development Report (2026)," providing a comprehensive overview of the country's upstream energy performance. The headline figure — 420 million tonnes of oil equivalent in 2025 — represents a new peak for China's domestic hydrocarbon production and reflects years of sustained investment in exploration, technology, and upstream reform.

The report highlights a remarkable run of exploration success. During the 14th Five-Year Plan period (2021-2025), Chinese oil and gas companies discovered 13 large oil fields with reserves exceeding 100 million tonnes each, and 26 large gas fields with reserves exceeding 100 billion cubic metres each. These discoveries were concentrated in the Bohai Bay, Ordos Basin, Sichuan Basin, Junggar Basin, and Tarim Basin — China's five major hydrocarbon-bearing provinces. The findings significantly expand the country's proved reserve base and provide a foundation for sustained production growth beyond 2025.

Natural gas was the standout performer. Production has increased by more than 10 billion cubic metres annually for nine consecutive years, driven by expanding pipeline infrastructure, growing urban gas demand, and the government's coal-to-gas switching policy. China is now the world's fourth-largest natural gas producer, behind the United States, Russia, and Iran. The steady growth of domestic gas supply has reduced the country's dependence on imported LNG, which had risen sharply in the early 2020s.

The unconventional sector also made significant contributions. Shale oil production surpassed 8.5 million tonnes in 2025, more than double the level of three years earlier, thanks to advances in horizontal drilling and hydraulic fracturing adapted to China's complex geological conditions. Shale gas output stabilized above 27 billion cubic metres, with the Sichuan Basin accounting for the vast majority of production. China's shale resources are among the largest in the world, but commercial development has historically been constrained by geology, water scarcity, and infrastructure — challenges that the industry is gradually overcoming.

Technological innovation was a key driver. The report credits advances in 3D seismic imaging, deep-well drilling (beyond 8,000 metres), and intelligent oilfield management systems for improving recovery rates and reducing development costs. China's national oil companies — CNPC, Sinopec, and CNOOC — have all invested heavily in digitalization and AI-assisted exploration, which has helped identify subtle traps and complex reservoirs that conventional methods would have missed.

The energy security context is critical. China is the world's largest oil importer, with crude import dependence exceeding 70% in recent years. Every percentage point of domestic production growth reduces the country's exposure to the volatile global oil market and maritime supply routes that pass through the Strait of Malacca. The 420-million-tonne milestone represents a meaningful step toward the government's long-term goal of securing a "basic self-sufficiency" floor for oil and gas supply.

Knowledge takeaway: China's oil and gas equivalent production hit 420 million tonnes in 2025, a record high. During the 14th Five-Year Plan, 13 billion-tonne oil fields and 26 trillion-cubic-metre gas fields were discovered. Shale oil production more than doubled to 8.5 million tonnes. The milestone is strategically important for China, the world's largest oil importer, as it reduces dependence on foreign supply and maritime shipping routes.