Reuters is reporting that China has set up a new state body to drill for deep oil and gas reserves. They write:Reuters is reporting that China has set up a new state body to drill for deep oil and gas reserves. They write:
China is setting up a new entity that groups national oil producers and other state firms to search for ultra-deep oil and gas reserves and tackle harder-to-extract non-conventional resources, state energy group CNPC said on Monday.
This is in answer to President Xi Jinping’s call for the sector to have “new productive forces” that will contribute to the country’s energy security, CNPC said on its website.
In addition to CNPC and Sinopec, the country’s two dominant producers of oil and gas, the new body gathers seven other state groups including China Aerospace Science and Industry Corp, steel group Baowu, equipment builder Sinomach, Dongfang Electric Group and Minmetals. […]
Years of effort by state oil majors to drill deeper onshore and accelerate development at offshore oilfields have yielded output growth of 2% per year since 2018.
That said, state firms have to contend with declining output at large mature fields. They are also grappling with the geological and cost challenges of extracting shale oil and gas resources.
Read more here.
