In 2023, the Shengli Oilfield has made significant strides, reaching a tier-three reserve level above 300 million tons for the first time in a decade. Following six consecutive years of stable production, crude oil output is on a steady rise. The construction of the national shale oil demonstration zone is accelerating, and the demonstration project for a million-ton CCUS (Carbon Capture, Utilization, and Storage) is operating efficiently.

Since the beginning of 2024, production has reached 17.67 million tons of crude oil, exceeding plans by 15,000 tons, while natural gas output stands at 660 million cubic meters, surpassing expectations by 78 million cubic meters.

With a consistent increase in oil and gas production, the Shengli Oilfield showcases its vibrant energy and robust capacity to enhance national energy security as evidenced by impressive data and remarkable achievements. Sun Yongzhuang, the Assistant General Manager of Sinopec Group and Executive Director and Party Secretary of Shengli Petroleum Administration, states that as a vital petroleum industrial base in China, the Shengli Oilfield will remain committed to the mission, transforming the loyalty of “oil workers towards the Party” into practical efforts for energy security and green development, ultimately contributing to building a strong energy nation and a beautiful China.

**Strength in Reserves and Production**

Energy security is essential for national interests and people’s livelihoods, with oil and gas reserves being foundational to this security. The Shengli Oilfield is focused on meeting core oil and gas demands by accelerating its reserve enhancement and production efforts, striving to become a leading force in the domestic oil and gas industry.

The oilfield is targeting to reach three tier-three reserves of 100 million tons each by adopting a high-quality, low-cost, high-capacity, and efficient exploration strategy. Through a seven-year action plan, they aim for orderly resource replacement via high-quality exploration breakthroughs.

The exploration well success rate has reached an eight-year high, while the drilling speed for challenging cooperative development projects has increased by 25.6%. New oil and gas systems have been discovered in the Jiyang shale oil region, the Jiyang sag’s deeper layers, and the ultra-deep Junggar Basin, highlighting promising potential.

With reported proven reserves of 27.64 million tons from the Bohnan North belt sandy gravel rock—Block Y282, they have become the reserve “star” of the year. In the first half of 2023, six small oilfields and twelve blocks passed national oil and gas reserve assessments, submitting an added proven reserve of 37.76 million tons.

As the oilfield transitions into the later stages of development, every 0.1% increase in recovery rate becomes a rigorous test of both skill and persistence for the team. The Shengli Oilfield treats water injection as a crucial component of stable production, emphasizing “increasing energy, controlling water content, and reducing decline” at the core of their operational strategy.

**Innovative Technology Driving Change**

In September 2023, the Shengli Oilfield CCUS demonstration zone in Gaoqing County is strategically positioned amongst corn fields, where carbon dioxide from Qilu Petrochemical travels through pipelines to injection stations, feeding into underground reservoirs.

The “Qilu Petrochemical – Shengli Oilfield Million-ton-level CCUS Project” has garnered attention since its inception, recognized as a national standard for green low-carbon energy transition. This initiative doesn’t just promise cleaner skies and waters, but also signifies a commitment to safeguarding energy and sustainable development.

In 2023, Shengli Oilfield’s technology investments led to a series of breakthroughs, enhancing its capacity with various progressive projects, such as its all-inclusive integrated smart energy system. This system consolidates various aspects of energy management, including carbon neutrality advancements and collaborative development models.

The oilfield’s commitment to environmental responsibilities is underscored by its successful initiatives to enhance production efficiency while decreasing carbon emissions, marking a pathway toward a sustainable future.

As Shengli Oilfield embarks on its green transformation journey, the results are evident—from production practices to the development of cleaner, innovative technologies that ensure a harmonious coexistence of nature and industry.

With the oilfield’s evolving vision of integrating conventional and renewable energy resources, the journey from fossil fuels to green energy is not just a shift in strategy, but a commitment to a sustainable future, illustrating hope for low-carbon development in the years to come.