Wedoany.com Report-Oct. 29, China’s first national-level lacustrine shale oil demonstration zone in Xinjiang Uygur Autonomous Region has surpassed an annual output of 1.5 million tons for the first time this year, signaling a transition from experimental technology development to large-scale, stable production, China Central Television (CCTV) reported on Wednesday.

The Jimsar Shale Oil Demonstration Zone, located in the eastern Junggar Basin, has continuously optimized key technologies such as drilling and fracturing, which have significantly improved development efficiency. The average daily output from newly drilled wells has reached 1,360 tons, while the drilling completion cycle has been reduced by 10 percent compared with the original plan. To date, the zone’s cumulative output has reached 5.19 million tons, making it China’s first shale oil production base to exceed one million tons annually.

The demonstration zone is part of the Xinjiang Oilfield, the first large-scale oilfield developed after the founding of the People’s Republic of China. The oilfield holds more than one billion tons of shale oil resources, ranking among the top nationwide in both reserves and development scale. Over the past 70 years, the Xinjiang Oilfield has produced more than 560 million tons of oil and gas equivalent. Situated in the resource-rich Junggar Basin, the oilfield has proven petroleum resources of 15 billion tons and natural gas resources exceeding 6 trillion cubic meters.

“These vast reserves provide a solid foundation for the continued capacity expansion of the Xinjiang Oilfield and for advancing China’s efforts to optimize its energy structure,” the CCTV report said.

According to China National Petroleum Corporation, the developer of the Jimsar zone, annual shale oil production is expected to reach 1.7 million tons by 2025, Xinhua News Agency reported earlier.

The achievement demonstrates significant progress in shale oil development, moving from experimental exploration to industrial-scale production. Technological improvements in drilling and fracturing have allowed for higher efficiency and shorter well construction cycles. The zone’s performance also highlights the strategic role of Xinjiang Oilfield in supporting China’s energy development and long-term resource security.

With abundant reserves and continued technological innovation, the Jimsar Shale Oil Demonstration Zone is positioned to sustain growth in shale oil output while contributing to the region’s economic development and energy optimization goals. The development reflects China’s broader focus on leveraging domestic resources and advancing efficient, large-scale energy production in key oilfields across the country.

The demonstration zone’s success reinforces its role as a model for future shale oil projects nationwide, combining technological advancement, operational efficiency, and resource scale to support stable and growing production.