Energy plan for 2021: oil production of 196 million tons and natural gas production of 202.5 billion cubic meters

On April 22, 2021, the National Energy Administration issued the "Guiding Opinions on Energy Work in 2021", making plans for energy work in 2021, requiring the total energy production in the country to reach about 4.2 billion tons of standard coal in 2021, including about 196 million tons of oil output and about 202.5 billion cubic meters of natural gas output.

 

The "Opinions" plan the energy work in 2021, and the main expected goals are as follows:

Energy structure: The proportion of coal consumption has dropped to less than 56%. The new electric energy will replace about 200 billion kilowatt hours, and the proportion of electric energy in final energy consumption will strive to reach about 28%.

Supply security: The total energy production in the country will reach about 4.2 billion tons of standard coal, about 196 million tons of oil, about 202.5 billion cubic meters of natural gas, and the installed capacity of non-fossil energy power generation will strive to reach about 1.1 billion kilowatts.

Quality efficiency: energy consumption per unit of GDP is reduced by about 3%. The allocation of energy resources has been more reasonable, the utilization efficiency has been greatly improved, the utilization rate of renewable energy such as wind power and photovoltaic power generation has remained at a high level, and the average utilization hours of inter-regional transmission channels have increased to about 4,100 hours.

Scientific and technological innovation: The process of tackling key problems in energy short-board technology and equipment has been accelerated, and the independent substitution of key core technologies, key equipment and key products has been effectively promoted. Focusing on the development needs of new energy models and new business forms, a number of new energy science and technology innovation platforms have been established.

Institutional reform: Realize the trial operation of the first batch of electricity spot pilot areas for longer-term settlement, steadily expand the scope of spot pilots, and further improve the degree of marketization of electricity trading. Improve the electricity market system that connects the medium- and long-term, spot and ancillary service markets.

Since 2021, the oil service industry has picked up, international oil prices have risen all the way, and the exploration and development of the "three barrels of oil" has made frequent breakthroughs, achieving a high-quality start, and the reform of the national oil and gas system has continued to move forward.

1) International oil prices soared:

In the first quarter, multiple tailwinds drove international oil prices to rise. Brent crude oil briefly stood above $70 a barrel for the first time since January 2020; WTI crude oil futures briefly stood above $67 a barrel for the first time since October 2018.

2) The domestic oil and gas industry is running well:

In the first quarter, China's oil and gas production and sales achieved double growth, producing 49.18 million tons of crude oil, a year-on-year increase of 1.4%; the production of natural gas was 53.3 billion cubic meters, a year-on-year increase of 13.1%; The apparent consumption of domestic refined oil products was 78.09 million tons, up 20.9% year-on-year, and the sales volume of natural gas was 96.27 billion cubic meters, up 23.4% year-on-year. All three major domestic oil companies have achieved profitability and made significant progress in upstream exploration and development business.

 

3) Domestic core oil companies have achieved a "good start"

In the first quarter, PetroChina, Sinopec and CNOOC actively responded to market changes, paid close attention to production and operation, improved quality and efficiency, and achieved profitability.

PetroChina's oil and gas production is running smoothly, Xinjiang Oilfield, Jilin Oilfield, Changqing Oilfield and other units have increased production, and the overall output in the first quarter has exceeded the plan. All of the professional companies are profitable.

4) Breakthroughs have been made in upstream exploration and development

In the first quarter, the "Three Barrels of Oil" made remarkable progress in upstream exploration and development, and achieved fruitful results in the Tarim Basin, Bohai Basin, Sichuan Basin and other regions.

On January 12, the exploration of the Taihe gas-bearing area in the northern part of the Sichuan Paleo-uplift in the southwest oil and gas field of PetroChina reported another good news, and the Permian Maokou Formation of Well Jiaotan 1 tested a high-yield industrial gas flow of 1.128 million cubic meters per day.

On February 11, the key pre-exploration well of PetroChina's Tarim Oilfield, Well Manshen 3, obtained a high-yield industrial oil and gas flow at a depth of 8,000 meters and ultra-deep depth, with a daily output of 1,610 cubic meters of oil and 525,000 cubic meters of natural gas, setting a record for the highest daily production of a single well in the desert area of the Tarim Basin.

On February 22, CNOOC Limited announced that it had discovered 100 million tons of oil and gas equivalent in the Bozhong 13-2 oil and gas field, achieving a major breakthrough in the exploration of "covering" buried hills in the Bohai Sea.

On March 11, the key exploration well of Sinopec Northwest Oilfield, Shunbei 42X, obtained a high-yield industrial oil and gas flow, and the preliminary estimate of the resource scale in the region exceeded 100 million tons. Well Shunbei 42X has recently tested 1,000 tons of industrial oil and gas flow, achieving a major breakthrough in the exploration of the No. 4 fault zone of Shunbei oil and gas field.

On March 15, the Yuanye 3 well, a key exploration well deployed by Sinopec in the Sichuan Basin, obtained a daily output of 15.6 cubic meters of shale oil and 11,800 cubic meters of shale gas, achieving a breakthrough in lacustrine shale oil and gas exploration in the Yuanba exploration area.