(Source: Max Sky/Shutterstock.com)
BEIJING—China aims to produce 1% more crude oil this year than in 2019 and to boost natural gas output by 4.3%, official targets showed on June 22, as the country seeks to safeguard energy security even after a coronavirus-driven collapse in oil prices.
The world’s biggest energy consumer has set a goal of producing 193 million tonnes of crude, or 3.85 MMbbl/d, in 2020, and 181 Bcm of gas, according to an annual production plan released by the National Energy Administration (NEA).
Those numbers compare to actual output of around 191 million tonnes of crude and 173.62 Bcm of gas last year.
The NEA said it would focus on expanding its four key energy production bases to achieve the goals—one offshore in Bohai Bay in northern China, as well as onshore in Sichuan province in the southwest, in the Erdos Basin and in the far western Xinjiang region.
It also aims to push forward development of so-called new energy—including renewables, fuel ethanol and coal-to-liquids—to improve its capability to replace conventional hydrocarbons.
The annual plan also set a target of having around 900 gigawatts of installed non-fossil fuel power generation capacity in 2020 and further lowering the share of coal in China’s primary energy mix to around 57.5%.
Coal’s share in China’s energy consumption slipped to 57.7% in 2019, although coal usage was still up 1% year-on-year in tonnage terms.
Installed non-fossil fuel power generation capacity—consisting of hydro, solar, wind and nuclear power—stood at just below 820 GW at the end of 2019, NEA figures show.
Recommended Reading
Popularity for Longer Laterals Grows in Permian Basin
2022-05-23 - With inflation playing a sizable role in Permian Basin operators’ spending, longer laterals could be a solution to offsetting inflationary costs, says Rystad’s Cole Wolf.
Defining Decarbonization in the Oil and Gas Sector
2022-03-21 - While oil and gas operators must have clearly defined terms in the rules for regulating their emissions, public outlook must shift to understand that an energy mix is the most realistic option in the energy transition, says Baker Hughes’ Allyson Anderson Book.
Carbon Management: Reducing Emissions Through CCUS Hubs
2022-05-17 - “The initiative is an all-in approach where we say that virtually all methane emissions from the industry can and should be avoided,” OGCI’s Julien Perez said of the coalition’s global goals at Hart Energy’s Carbon Management Conference on May 16.
DUG Midcontinent 2022: Opening Address: STACK-tacular
2022-03-02 - The Anadarko Basin’s diversity of commodity weighting is offering formations and fairways for any operator today, as a trifecta is in play: high oil, gas and NGL prices.
DUG Midcontinent 2022: Marietta Deep
2022-03-02 - Wells are as much as 15,000 TVD here in southern Oklahoma’s Marietta Basin -- and they’re enormous. Here’s a look inside this bountiful basin.