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Dongying makes breakthrough in China's medium-to-low maturity shale oil development

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chinadaily.com.cn|Updated: May 27, 2026

Dongying has witnessed a breakthrough in the exploration and development of medium- to-low maturity shale oil, with cumulative production at the national-level Shengli Jiyang shale oil demonstration zone surpassing 2 million metric tons, according to Sinopec on May 25.

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Researchers communicate with on-site teams at the integrated command center. [Source/sdchina.com]

As China's first national-level demonstration zone for shale oil in a continental rift basin, the Shengli Jiyang shale oil demonstration zone has played an important role in the large-scale development of continental shale oil.

Proven reserves in the area have reached 327 million tons, while estimated resources total 10.5 billion tons, comparable to discovering another "Shengli Oilfield" underground and laying a strategic resource foundation for future crude oil supply in eastern China.

Unlike commercially developed shale oil abroad, around 90 percent of Jiyang's shale oil resources are classified as medium-to-low maturity, long considered unsuitable for commercial extraction.

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Experts tackle technical challenges in shale oil exploration. [Source/sdchina.com]

After years of independent research by Shengli Oilfield, key theories and technologies for continental shale oil development have been made. Drilling time for 6,000-meter wells has been reduced from 133 days to 17 days, while the predicted output per well now exceeds 43,000 tons of oil.

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Shengli Oilfield accelerates the construction of the national-level Jiyang Shale Oil Demonstration Zone. [Source/sdchina.com]

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Shengli Oilfield achieves breakthrough in multi-scale fracture network stimulation technology. [Photo/sdchina.com]

The demonstration zone's annual output has risen from 131,000 tons in its early stage to 700,000 tons in 2025, making greater contributions to China's energy security and shale oil industry.

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