China’s CNOOC Ltd. has tapped commercial flows of oil and gas from a shale exploration well in the South China Sea, marking the first successfully drilled shale oil well offshore China, state media reported on July 28.
Exploration well Weiye-1, sunk at the southwestern trough of Beibuwan Basin in South China Sea, tested daily production of 20 cubic meters (126 barrels) of oil and 1,589 cubic meters of natural gas, Shanghai Securities Journal reported.
The whole Beibuwan basin could hold about 1.2 billion tonnes of prospective shale oil resource, the report added.
CNOOC’s press department did not immediately respond to a request for comment.
Under a central government call to boost domestic energy supply security, national oil companies are making greater efforts to tap shale deposits despite their geological challenges and higher cost.
By late 2021 China produced only 35,000 bbl/d of shale oil—extracted from shale rocks and is more complex and expensive to produce than conventional crude—mostly in onshore northern Ordos basin and northwestern Jungar Basin.
That equates to less than 1% of its total oil output.
2022-11-30 - Shale royalty Bryan Sheffield and Dick Stoneburner shift their attention to Australia.
2022-11-16 - Diamondback Energy’s president and CFO, Kaes Van’t Hof, spoke to Hart Energy about the return of the “mythical generalist investor” plus what’s next for the Permian company after closing its recent $1.6 billion acquisition.
2022-10-31 - The targets are the Barnett and Woodford shales, as the Waha has a hotter outlook than it appears today, Pioneer Natural Resources reveals during the Permian operator’s earnings call.
2022-11-06 - Chesapeake Energy is teeing up for more natural gas takeaway and LNG demand in late 2023 and into 2024. Plans have been canceled for adding an eighth rig in the Haynesville.
2022-11-01 - Ryan Lance, E&P leader at the helm of ConocoPhillips Co., has worked with peers and governments throughout the world. On the energy future, he says, “It’s really going to take ‘all the above.’”