China Establishes Third National Shale Oil Demonstration Zone, Output Exceeds 700,000 Tonnes
China’s first continental faulted lake basin shale oil zone at Shengli Jiyang oilfield in Shandong reached annual output over 700,000 tonnes in 2025, marking the country’s third national-level demonstration area.
China’s National Energy Administration reported the successful launch of a third national shale oil demonstration zone, located at the Shengli Jiyang oilfield in Shandong province. The zone is the first of its kind in a continental faulted lake basin and achieved annual production exceeding 700,000 tonnes in 2025.
The project has proven geological reserves of 327 million tonnes, according to the report. It joins two previously established national-level demonstration zones, underscoring China’s push to expand domestic shale oil output.
The development signals a strategic step in enhancing energy self-sufficiency and testing extraction techniques in complex onshore basins.
Source: First Squawk