Sinopec Boosts China's Shale Oil Output
Expert Says Traders Should Brace for July Jump in Oil Prices Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.
Sinopec’s Jiyang shale oil base in Shandong province has ramped up output in recent months, raising Chinese shale production and domestic resources and output as the world’s biggest crude importer looks to boost its energy security.
Cumulative oil production at Jiyang has topped 2 million tons, Chinese mediareportedon Monday.
The Jiyang base, which covers about 7,300 square kilometers, or 2,820 square miles, in the Shandong province in east China, increased shale oil output by 15% in the first four months of 2026 compared to the same period last year, thanks to 10 new wells placed into operation, according to Sinopec.
The Chinese state oil giant formally known as China Petroleum & Chemical Corporation has also recently openeda major ultra-deep shale gasfind after obtaining official government approval for proven geological reserves of 235.687 billion cubic meters in the Ziyang Dongfeng field in the Sichuan province.
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Sinopec earlier this monthannouncedthat the Ministry of Natural Resources of China approved its reserves validation at the shale gas field, marking the creation of China’s first ultra-deep, 100-billion-cubic-meter-level shale gas field.
“After over a decade of persistent effort, we have taken Cambrian shale gas from zero to a hundred-billion-cubic-meter-scale reserve base,” commented Liu Wei, director of Sinopec Southwest Petroleum Bureau and representative of Sinopec Southwest Oil & Gas Company.
“This validates the formation’s vast potential and gives us a replicable technical pathway to expand China’s shale gas development frontier.” Sinopec will now move to the next state of driving “high-quality exploration and production, accelerate capacity growth at Ziyang Dongfeng, and contribute to secure national energy security,” the executive added.
In recent years, Sinopec has been actively exploring andcertifying growing volumesof shale oil and gas reserves in China’s onshore basins, despite technically and geologically challenging terrains and ultra-deep formations.
Despite the challenges, shale exploration is an important part of China’s push to boost its domestic oil and gas production in a bid to reduce its significant exposure to imported hydrocarbons.
Expert Says Traders Should Brace for July Jump in Oil Prices Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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