Guan Cha Zhe Wang·2025-11-05 06:43Core Insights - China has achieved significant milestones in energy security, including the discovery of the first billion-ton shale oil field and a major deep-water gas field, reflecting its commitment to self-sufficiency in energy production [1][3] Industry Developments - Since the first round of the US-China trade conflict, China has invested heavily in domestic oil and gas production, resulting in a 13% increase in crude oil output and over 50% growth in natural gas production [1][8] - In 2024, China's total oil and gas production is expected to exceed 400 million tons of oil equivalent, with crude oil production reaching 213 million tons, close to historical peaks [8] - Chinese energy companies have invested $468 billion in drilling and exploration since 2019, making China National Petroleum Corporation the largest spender globally during this period [3][8] Market Dynamics - Global energy companies, including Shell and Saudi Aramco, continue to view China as a critical market, with expectations of a 60% increase in global LNG demand by 2040, primarily driven by China [5] - Despite a slowdown in energy demand growth due to the rise of electric vehicles, domestic oil and gas production in China is on the rise, leading to a competitive energy market [5][8] Strategic Positioning - China's focus on energy independence has intensified due to geopolitical tensions and trade policies, with officials emphasizing the importance of domestic production for energy security [3][9] - The evolution of major Chinese oil and gas companies has positioned them as significant players in the global market, with China ranking seventh in global crude oil production and fourth in natural gas production [7][8]