China has confirmed a major shale oil and gas discovery in the Sichuan Basin, signaling a boost to the country’s unconventional energy resources. The Qiluye-1 well in Qijiang district, Chongqing, produced 38.64 cubic meters of oil and 10,000 cubic meters of gas per day, marking a promising addition to China’s energy portfolio. Experts say the discovery could help maintain long-term stable crude oil output.
The Qiluye-1 well penetrated more than 2,000 meters of shale and extended horizontally over two kilometers. Nearly 40 meters of oil-bearing shale were encountered, indicating a high-quality, shallowly buried resource. Estimates suggest the new shale field covers more than 1,000 square kilometers with reserves surpassing 100 million tons.
Sinopec, the company behind the development, highlighted the strong economic prospects of the Qiluye-1 production. A representative stated that the shallow burial and high quality of the shale oil support efficient extraction and commercial viability.
This discovery builds on the 2022 Qijiang shale gas field finding, which holds proven reserves of hundreds of billions of cubic meters. The high yields from Qiluye-1 further expand the region’s unconventional energy portfolio, demonstrating China’s growing expertise in shale extraction.
China’s shale oil output has grown steadily, reaching 705,000 tons in 2024, up 308,000 tons from the previous year. In 2025, Sinopec reported more than 200 million tons of proven shale oil reserves and 12.35 billion cubic meters of gas, reflecting the strategic importance of unconventional energy development.
Energy analysts note that shale oil is a key driver for sustaining China’s energy security. With domestic oil demand rising, expanding shale production could reduce reliance on imports and enhance long-term economic stability. Officials also emphasize the importance of careful exploration and environmentally responsible extraction.
Looking ahead, Sinopec plans to continue developing the Qijiang basin and explore adjacent formations. The company aims to leverage advanced drilling techniques to increase production efficiency and unlock further shale potential.
