China’s oil industry has defied falling oil prices by maintaining production growth, unlike U.S. shale producers cutting output. China’s government plays a significant role, with national oil companies producing 85% of the country’s oil, leading to increased domestic exploration and production under a 2019-2025 Seven-Year Action Plan.

China became a net oil importer in 1994 due to rising consumption exceeding domestic production. Last year, China produced 5 million barrels of crude per day but consumed over 16 million, making it the world’s largest crude oil importer. The government aims to boost energy security through increased domestic production and strategic oil reserves.

Beijing’s focus on boosting oil and gas exploration shifted in 2019 due to trade tensions with the U.S., leading to a 7-Year Plan launch. PetroChina increased E&P capex to $32 billion in 2023, with reserves growing by 21%, while CNOOC saw production jump 45% in 2024. Sinopec reversed production decline with a 2% increase in the 2021-2024 period.

PetroChina’s use of Enhanced Oil Recovery techniques has revived aging oilfields, producing over 2 billion barrels of crude from the Daqing oil field since 1960. China’s oil industry continues to grow despite lower oil prices, driven by government policies and investments in exploration and production.

Read more at Yahoo Finance: Why China’s Oil Production Keeps Growing Despite Lower Oil Prices