In the depths of the Junggar Basin in Xinjiang in July, the sound of machinery was roaring. As of June 30, the Xinjiang Jimsar National Continental Shale Oil Demonstration Zone, China's first national-level continental shale oil demonstration zone, has delivered an impressive "mid-year report": it has produced a total of 880,000 tons of crude oil in the first half of 2025, a significant increase of 82.2% compared to the same period last year, exceeding the planned output by 30,000 tons and achieving 51.8% of the annual target. This figure not only sets a new record for the fastest production pace since the establishment of the demonstration zone but also marks that China's continental shale oil development is accelerating from "technological breakthrough" to "profitable development" with the dual drive of "technology + management".
The "whetstone" of the breakthrough: Solving the world-class problem of shale oil development
The extraction of shale oil in Jimsar is vividly described by industry insiders as "squeezing oil from a whetstone". This oil reservoir is buried over 3,500 meters deep, with a permeability rate only one ten-thousandth of that of conventional oil reservoirs. The rock is so dense that even water cannot penetrate it, making the development far more challenging than that of ordinary oil reservoirs. Since it was jointly approved by the National Energy Administration and the Ministry of Natural Resources in January 2020, this "black treasure" has carried the mission of being a "pioneer" in the development of continental shale oil in China - with the plan to fully build a national demonstration zone by 2025, paving the way for the development of unconventional oil reservoirs in the country.
Dual-driven: Technological Innovation and Management Reform Activate the "Oil Vein"
This year, China National Petroleum Corporation's Xinjiang Oilfield has taken "technological breakthroughs to break through bottlenecks and management innovation to enhance efficiency" as its key approach. In the development of the Jimsar shale oil, it has continuously broken multiple records, setting a new benchmark for efficient development.
Technological Innovation: A Breakthrough in the Entire Chain from "Drilling Accurately" to "Producing Rapidly"
In the fields of deepening geological understanding and key technology research, Xinjiang Oilfield has been making continuous efforts. The core indicator, the "golden target" (the most oil-rich reservoir area in shale oil), has seen its drilling encounter rate increase by 1.3 percentage points from 87.3% last year to 88.6%, which is equivalent to precisely locating the high-yield "sweet spot" in a 3,500-meter underground "black box". In the drilling process, by optimizing the "drill bit selection - drill string combination - parameter matching" template throughout the entire process and fully leveraging the collaborative advantages of integrated wellbore operations, the horizontal well JHW85-19 set a new record of 1,860 meters of footage drilled in a single day during the drilling operation, a 1.2% increase over the highest single-day footage in the block last year, setting a new high for drilling efficiency in the area. To address the challenge of complex drilling control, the research team innovatively adopted a strategy of "zoned casing depth + precise density control", reducing the complex time rate of completed wells by 1.3% compared to last year, truly achieving "fast and stable" drilling. Additionally, the average commissioning period for new wells has been further shortened to 2 days (0.5 days faster than last year). Through the "three-pronged" approach of pre-planning the plug removal operation, optimizing the commissioning deployment, and enhancing the first-time success rate of well opening, new wells can achieve stable production immediately after commissioning, significantly increasing their contribution rate in the same year.
Management Innovation: "One Fullness and Six Transformations" Create a "Standard Template" for Development
The construction of demonstration zones not only pursues production figures but also aims to build a replicable development system. Xinjiang Oilfield, with the "One Fullness and Six Transformations" (full life cycle management, integrated planning, professional collaboration, market-oriented operation, social support, digital management, and green development) as its methodology, has established a comprehensive management system covering the entire process, from deployment planning to benefit assessment, and from single-well operation to full industrial chain collaboration. As Du Xuebiao, the manager of the Jiqing Oilfield Operation Area, put it, "What we aim to create is not a 'production island', but a 'standard template' for the development of continental shale oil." Through the "dual-wheel drive" of technology and management, the demonstration zone has set multiple domestic records in the first half of the year - the practice of cumulative production exceeding 4.5 million tons has provided a "Jimsar Solution" for the development of unconventional oil reservoirs in China, from geological understanding to engineering technology.
Reaching New Heights: A Dash for the 1.7 Million Ton Annual Target
It is worth noting that in the first half of this year, the daily output of shale oil in Jimusar exceeded 5,000 tons for the first time, setting a new record since the start of its development. According to the plan, by 2025, the annual output of this demonstration area will aim for 1.7 million tons, fully completing the construction tasks of the national-level continental shale oil demonstration area. By then, the series of key technologies (such as precise positioning of golden targets and integrated efficient wellbore operations) and management experiences (such as the "one full and six modernizations" full life cycle management model) formed here will not only provide a "technical guide" for domestic shale oil development but also inject "petroleum power" into national energy security with stable production capacity output.
From "extracting oil from whetstones" to "high-efficiency large-scale development", the half-year report card of the Jimsar shale oil demonstration zone is not only a microcosm of the technological breakthroughs made by China National Petroleum Corporation in unconventional reservoirs, but also a vivid footnote to the enhancement of China's energy security resilience. As the goal of full completion by 2025 approaches, this land is writing the "Chinese solution" for the development of continental shale oil.