China's 2023 oil and gas output hits record high 390 mil mt oil equivalent

China's combined oil and gas production hit a record high of more than 390 million mt of oil equivalent in 2023, representing an average annual growth rate of 11.7 million mt of oil equivalent, the National Energy Administration said in a statement released late Jan. 9.

The record high output came on the back of China pushing its upstream exploration and production companies to maximize oil and gas output from domestic reserves so as to boost energy security and cut reliance on imports from volatile regions like the Middle East.

China's natural gas production reached 230 Bcm in 2023, maintaining an annual increase of 10 Bcm for seven consecutive years, the NEA noted.

The 2023 gas production volume was 5.6% higher than the 217.8 Bcm recorded in 2022, which represents a slightly lower growth rate than the 6.4% recorded the previous year, according to calculations based on historical data from the National Bureau of Statistics.

The Sichuan Basin, Ordos Basin and Tarim Basin were the top three areas increasing natural gas production, accounting for 70% of the increase in the country's total natural gas production since 2018, according to the NEA.

Meanwhile, unconventional natural gas production exceeded 96 Bcm in 2023, accounting for 43% of total natural gas production and becoming an important growth pillar for increasing natural gas reserves and production, the NEA said. It added that the annual output of tight gas, shale gas and coalbed methane exceeded 60 Bcm, 25 Bcm and 11 Bcm, respectively, last year.

On the other hand, China's crude oil production reached 208 million mt (4.18 million b/d) in 2023, a year-on-year increase of more than 3 million mt, mainly driven by a substantial rise in offshore crude oil whose production exceeded 62 million mt, the NEA said. This accounted for more than 60% of the country's increased crude oil production for four consecutive years.

China's shale oil production reached a new high of more than 4 million mt in 2023, while its large onshore deep oil fields produced 11.8 million mt of crude oil last year, making it the global leader in onshore ultra-deep oil and gas fields deeper than 6,000 meters, according to the NEA.