China Engages in Shale Oil Drilling Amid Soaring International Oil Prices

First Shale Oil Extraction at 3000m Altitude Qinghai Qingzhang Plateau
Focus on Success Amid China's Emphasis on Energy Security

[Asia Economy Beijing=Special Correspondent Jo Young-shin] While international oil prices are soaring, China has started shale oil extraction.

Photo by Global Times Capture

According to Chinese media such as Xinwenwang on the 30th, Qinghai Oilfield Branch of China National Petroleum Corporation held a ceremony for shale oil extraction yesterday in Mangya District, Haixi Mongol and Tibetan Autonomous Prefecture, Qinghai Province.

Qinghai Province is located in the northeastern part of the Tibetan Plateau, bordering Xinjiang Uygur Autonomous Region to the west and Tibet Autonomous Region to the south. This is the first time China has extracted shale oil in the Qinghai-Qingzang Plateau area.

Chinese media reported that exploration of this area began in the 1950s, and shale oil drilling has been in full swing since last year.

Chinese media also stated that this extraction project will proceed in three phases, with an initial goal of extracting 100,000 tons.

China estimates that there is a shale oil area of 150 square kilometers located 5,000 meters below the surface in Qinghai.

Lin Bochang, director of the Energy Research Center at Xiamen University, said, "This shale oil extraction is an important measure to ensure China's energy security," and added, "Exploration and development of shale oil in the Qinghai Plateau area will also greatly benefit the regional economy."

Recently, international oil prices have soared past $100 per barrel, bringing renewed attention to shale oil. The break-even point for shale oil is known to be around $50 to $60 per barrel. Shale oil had been neglected for some time due to profitability issues.

Earlier, the National Development and Reform Commission (NDRC) of China disclosed an energy restructuring plan that includes expanding shale oil and natural gas production as part of China's energy security strategy.

The NDRC announced plans to increase natural gas production from about 205 billion cubic meters last year to over 230 billion cubic meters by 2025, an increase of approximately 12%. It also stated that it will actively expand exploration and development of shale oil and gas.