China Uncovers 100-Million-Ton Shale Oil Resource in Qaidam Basin

31 Jul.,2025

On May 16, China National Petroleum Corporation (CNPC) announced a major shale oil discovery in the Yingxiongling area of the Qaidam Basin, located in northwest China. The resource is estimated to exceed 100 million tons, marking a significant breakthrough in the country’s unconventional oil exploration efforts.

 

Source: China News Service

On May 16, China National Petroleum Corporation (CNPC) announced a major shale oil discovery in the Yingxiongling area of the Qaidam Basin, located in northwest China. The resource is estimated to exceed 100 million tons, marking a significant breakthrough in the country’s unconventional oil exploration efforts.

Situated on the arid, high-altitude Qinghai-Tibet Plateau, the Qaidam Basin sits over 3,000 meters above sea level and is known as one of the world’s most geologically complex and environmentally challenging hydrocarbon basins. Since 2021, CNPC’s Qinghai Oilfield Company has conducted integrated geological and engineering studies focusing on the basin’s unconventional resources, with the Yingxiongling shale oil formation as the key target.

The Yingxiongling formation is a unique “plateau-mountain” style continental shale oil reservoir shaped by intense Himalayan tectonic activity and frequent changes in sedimentary environments. Its complex geology features thick saline lake sediments, low organic content but highly efficient hydrocarbon generation, and intricate structural formations—characteristics that set it apart from more stable marine and continental shale reservoirs in China and abroad.

The region’s remoteness, harsh climate, oxygen scarcity, and water shortages add to the challenges of shale oil exploration and development. “In recent years, our team has tackled key questions about the quantity, location, quality, and extraction methods of shale oil here,” said Wu Kunyu, project leader at CNPC’s Qinghai Oilfield Exploration and Development Research Institute. “We have already established three pilot development platforms, laying a solid foundation for future scale-up and improved production efficiency.”

This discovery underscores China’s commitment to strengthening domestic energy security by advancing unconventional oil and gas development in demanding regions like the Qaidam Basin.

 

 

 

 


Reproduced article do not represent the position of New Energy Era.