The National Energy Administration said in a statement issued late on January 9 that China’s total production of oil and gas reached a record high of more than 390 million mt of oil equivalent in 2023, indicating an average yearly increase of 11.7 million mt of oil equivalent.
In order to increase energy security and reduce reliance on imports from unstable regions like the Middle East, China has been pressuring its upstream exploration and output companies to maximise gas and oil output from domestic reserves, which has resulted in record high output.
The NEA stated that China’s natural gas output reached 230 Bcm in 2023, continuing a seven-year trend of growth of 10 Bcm annually.
Calculations based on historical data from the National Bureau of Statistics show that the volume of petrol produced in 2023 was 5.6% increased than the 217.8 Bcm recorded in 2022, which represents a slightly lower growth rate than the 6.4% recorded the previous year.
According to the NEA, the top three basins for natural gas production growth were the Sichuan, Ordos, and Tarim basins. These basins accounted for 70% of the rise in the nation’s total natural gas output since 2018.
Natural Gas Growth Trends: China’s Continual Ascendancy with 230 Billion Cubic Meters in 2023
According to the NEA, unconventional natural gas output surpassed 96 billion cubic metres in 2023, making up 43% of all natural gas produced. This growth pillar is now crucial for raising reserves of natural gas and output.
It further stated that last year’s annual production of coalbed methane, shale gas, and tight gas exceeded 60 billion cubic metres, 25 billion, and 11 billion, respectively.
However, the NEA reported that China’s oil output increased by more than 3 million metric tonnes (mt) year over year to 208 million metric tonnes (4.18 million b/d) in 2023.
This increase was primarily due to a significant increase in offshore crude oil production, which surpassed 62 million metric tonnes. For four years in a row, this accounted for more than 60% of the nation’s raised output of crude oil.
According to the NEA, China is the world leader in onshore ultra-deep oil and gas fields deeper than 6,000 metres. Its large onshore deep oil fields produced 11.8 million mt of crude oil this past year, surpassing the output of shale oil, which reached a new high of more than 4 million mt in 2023.