Oil and gas reserves and production cannot be relaxed

Promoting oil and gas reserves and production is a strategic choice to ensure national energy security and the key to achieving the "dual carbon" goal. From the perspective of resource conditions, our country still has great potential to increase oil and gas reserves and production in the future, and the production and economy of unconventional natural gas are expected to continue to improve.

Recently, the National Energy Administration released data showing that our country's oil and gas production maintained a good momentum in the first quarter, with crude oil production increasing by 4.4% year-on-year and natural gas production increasing by 6.6% year-on-year, continuing to maintain the trend of steady oil and gas growth since 2019.

At present, it is not easy for our country to make continuous breakthroughs in increasing oil and gas reserves and production. Since 2016, due to the impact of low oil prices, domestic oil and gas exploration and development investment has continued to decline, crude oil production has declined for three consecutive years, natural gas dependence has risen rapidly, and national energy security risks have intensified. In 2019, the National Energy Administration officially implemented the "Seven-Year Action Plan" to increase reserves and production in the oil and gas industry, and domestic oil companies increased investment in exploration and development and scientific and technological investment. Up to now, our country's crude oil production has rebounded for three consecutive years, and natural gas production has increased by more than 10 billion cubic meters for five consecutive years, fighting a beautiful "turnaround".

Oil and gas security is the core of energy security, and our country's dependence on oil and gas is as high as 70% and 40% respectively.

Promoting oil and gas reserves and production is the key to achieving the "double carbon" goal. Under the "dual carbon" goal, the gradual replacement of oil and natural gas by renewable energy is the general trend, and our country is in the middle and late stages of industrialization and the rapid advancement of urbanization, and energy demand will continue to grow rapidly for a long time in the future. Until renewable energy has the ability to take the lead, oil and gas will remain indispensable. In particular, natural gas has the advantages of cleanliness, high supply stability and low acquisition cost, and will play an important role as a bridge in the process of green and low-carbon energy transformation. It is predicted that around 2035, our country's natural gas demand will reach more than 600 billion cubic meters, and the proportion of natural gas in the energy consumption structure will increase to about 14%. If we do not continue to strengthen the independent supply capacity of natural gas, the dependence on foreign gas will rise sharply.

In order to effectively ensure the supply of oil and gas, the "Action Plan for Carbon Peaking before 2030" issued by the State Council proposes to accelerate the large-scale development of unconventional oil and gas resources such as shale gas, coalbed methane, and tight oil (gas). Since then, the State-owned Assets Supervision and Administration Commission of the State Council has held a meeting of heads of central enterprises to emphasize the need to increase domestic resource exploration, promote domestic oil and gas reserves and production, and better play a supporting role in the production and self-sufficiency of important energy resources.

From the perspective of resource conditions, our country still has great potential to increase oil and gas reserves and production in the future. In terms of oil, in the past three years, our country's annual proven geological reserves of crude oil have exceeded 1 billion tons, and this scale is expected to continue to be maintained; In terms of natural gas, our country is very rich in unconventional natural gas resources such as coalbed methane and shale gas, and has good prospects for exploration and development. In the past five years, the proportion of unconventional natural gas (shale gas, coalbed methane) production in the total national natural gas production has doubled from less than 7% to about 14%. In the future, with the continuous expansion of exploration and development and the progress of engineering technology, the production and economy of unconventional natural gas are expected to continue to increase, and it is expected to become an important part of our country's natural gas supply in the future.

At present, affected by the supply and demand situation, the oil and gas industry has ushered in a recovery after several years of downward cycle, and the high prosperity has promoted the acceleration of downstream capital expenditure, providing a better external environment for our country's oil and gas enterprises to increase investment, increase reserves and production. Energy authorities and oil and gas enterprises should adhere to the mission of "I contribute oil to the motherland", carry forward the spirit of Daqing and the spirit of iron man, and make every effort to promote the stable and increased production of crude oil, and the continuous and rapid production of natural gas to ensure national energy security.

It is necessary to continue to improve oil and gas exploration and development and investment, and make every effort to break through a series of key technologies in oil and gas exploration and development. actively cultivate new momentum for oil and gas reserves and production, strengthen offshore oil and gas exploration and development, and further promote the shale revolution; accelerate the revitalization of unused reserves and accelerate the withdrawal and circulation of oil and gas mining rights; Give full play to the significant advantages of concentrating on doing big things, and form a strong joint force to jointly support the work of increasing oil and gas reserves and production.

As a global leader in high-end energy equipment solutions, Sany Petroleum will continue to deepen the oil and gas market, continuously promote the innovation of oil and gas development methods, help the domestic oil and gas market reduce costs and increase efficiency, low-carbon and environmental protection, and contribute to the development of China's unconventional oil and gas resources and the green and sustainable development of the oil and gas industry!