China Oil And Gas Upstream Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 53.39 Billion |
| Market Size (2029) | USD 58.63 Billion |
| CAGR (2024 - 2029) | 1.89 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Oil And Gas Upstream Market Analysis
The China Oil And Gas Upstream Market size is estimated at USD 53.39 billion in 2024, and is expected to reach USD 58.63 billion by 2029, growing at a CAGR of 1.89% during the forecast period (2024-2029).
- Over the medium term, factors such as the discovery of new oil and gas fields and rising oil and gas investments are expected to drive the Chinese oil and gas upstream market during the forecast period.
- On the other hand, rising emphasis on the renewable energy industry and higher oil and gas production costs are expected to hinder market growth during the forecast period.
- Nevertheless, the country’s untapped oil and gas potential is expected to create immense opportunities for the Chinese oil and gas upstream market over the coming years.
China Oil And Gas Upstream Market Trends
Offshore Segment Projected to Dominate the Market
- China has significant oil and gas reserves located in offshore reservoirs, which present a substantial potential for the country’s energy production. The exploration and extraction of these offshore resources have become a focus for Chinese companies as they strive to enhance their oil and gas production capabilities.
- Further, China’s efforts to enhance offshore oil and gas production are crucial for meeting the country’s increasing energy demands and reducing its reliance on imported fossil fuels. By investing in the development of offshore resources, China aims to strengthen its energy security and support its economic growth. The development of advanced technologies and strategies has enabled Chinese companies to tap into these offshore reservoirs more efficiently, contributing to the growth of the country’s energy industry.
- China’s natural gas and oil production has grown since 2018. It has continued to advance into deepwater areas in the South China Sea. The three major national oil companies (NOC), China National Offshore Oil Corporation (CNOOC), China Petroleum & Chemical Corporation (Sinopec), and China National Petroleum Corporation (CNPC), are significantly responsible for developing the South China Sea’s resources. In 2023, China produced 410,000 barrels per day of petroleum liquids and 489 billion cubic feet of natural gas from the South China Sea, according to Rystad.
- The South China Sea is a region of strategic importance due to its significant oil and natural gas reserves. The potential for oil production in the South China Sea has attracted significant investment from oil companies, leading to an increase in contracts for oilfield service companies operating in the region.
- For instance, in March 2024, China's national oil giant, China National Offshore Oil Corporation (CNOOC), made an oilfield discovery with a volume of 100 million tons in the eastern South China Sea.
- As of July 2024, China boasted 50 operational offshore rigs, with oil rigs dominating at 46, while gas rigs numbered three, as reported by Baker Hughes. The significant number of oil rigs highlights China's focus on oil extraction in its offshore drilling activities.
- In March 2024, China discovered an oilfield in the Bohai Sea with proven oil reserves of 104 million tons. The Qinhuangdao 27-3 oilfield, located 200 kilometers west of North China's Tianjin, is a 48.9-meter-thick oil layer in a 1,570-meter-deep well. With reserves exceeding 100 million tons of oil equivalent, testing has shown that the oilfield can produce about 110 tons of crude oil per day, showing promising exploration prospects.
- Therefore, owing to the abovementioned developments, activities in the offshore segment are likely to increase and positively impact the Chinese oil and gas upstream market over the forecast period.
Rising Oil and Gas Investments Driving Market Demand
- China is the second-largest consumer of oil and gas and the sixth-largest producer of oil and gas globally. The Chinese oil and gas upstream market is dominated by state-owned oil and gas companies that are driving the country's domestic oil and gas exploration and production activities.
- China's natural gas production has seen significant growth with rising demand from numerous industries. In 2023, China's natural gas production reached a record high of 232.43 billion cubic meters, as reported by the National Bureau of Statistics of China. This marked a notable surge of more than 12 billion cubic meters from the preceding year, solidifying its position as the peak production year in recent memory. Such developments are expected to attract major investments to meet the demand.
- China has also been increasingly focused on the exploration and extraction of oil and gas resources, particularly in its desert regions. The country’s oil and gas companies have been directing their efforts toward drilling ultra-deep wells in basins located within these arid landscapes. There is a heightened level of competition among oilfield service companies to secure contracts.
- In March 2024, the superdeep borehole in northwest China's Xinjiang Uygur Autonomous Region breached the 10,000 m mark, with plans to delve even deeper. The achievement signified a tremendous advancement in China's deep-Earth exploration efforts. The borehole "Shenditake 1,” situated in the heart of the Taklimakan Desert in the Tarim Basin, is on track to reach its intended depth of 11,100 m.
- China National Offshore Oil Corporation (CNOOC) announced its business strategy and development plan for 2024. The company’s net production target ranges from 700 MMboe to 720 Mmboe for 2024. China is expected to contribute around 69% of the production, with the remaining 31% coming from overseas. The company’s net production target is also set to increase, reaching 780 MMboe to 800 MMboe in 2025 and further climbing to 810 MMboe to 830 MMboe in 2026.
- Hence, increasing investments from domestic and foreign firms are expected to drive the Chinese oil and gas upstream market during the forecast period.
China Oil And Gas Upstream Industry Overview
The Chinese oil and gas upstream market is semi-consolidated. Some of the major players (not in any particular order) include China National Petroleum Corporation, China Petroleum & Chemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC), Exxon Mobil Corporation, and Chevron Corporation.
China Oil And Gas Upstream Market Leaders
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China National Petroleum Corporation
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China Petroleum & Chemical Corporation (Sinopec)
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China National Offshore Oil Corporation (CNOOC)
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Exxon Mobil Corporation
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Chevron Corporation
*Disclaimer: Major Players sorted in no particular order
China Oil And Gas Upstream Market News
- July 2024: China established a new entity for consolidating national oil producers and other state firms searching for ultra-deep oil and gas reserves and addressing the extraction of more challenging non-conventional resources, according to the state energy group CNPC.
- May 2024: China's first independently developed ultra-deepwater gas field, Shenhai Yihao (Deep Sea No.1), achieved a cumulative natural gas output of over 8 billion cubic meters and an oil output exceeding 800,000 cubic meters. Shenhai Yihao, the deepest gas field of its kind in China, commenced operations on June 25, 2021. The China National Offshore Oil Corporation (CNOOC), which operates the gas field, announced that construction of the phase II project to upgrade the gas field was in progress. Once completed, this project will manage 23 deepwater gas wells and two underwater production systems. Located 150 km from Sanya in Hainan province, Deep Sea No.1 can operate at sea depths exceeding 1,500 meters.
- February 2024: China announced the discovery of the world's largest metamorphic rock oilfield in the Bohai Sea, as reported by the China National Offshore Oil Corporation on February 25. Situated approximately 170 kilometers from Tianjin Municipality, the Bohai 26-6 oilfield holds a historic amount of oil and gas, with newly proved reserves exceeding 40 million cubic meters. The cumulative proven reserves for the field now exceed 200 million cubic meters.
China Oil And Gas Upstream Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Capex and Forecast in USD Billion, till 2029
4.3 Crude Oil Production and Consumption Forecast in Thousand Barrels per day, till 2029
4.4 Natural Gas Production and Consumption Forecast in Billion Cubic Feet per day, till 2029
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.1.1 Discovery of New Oil and Gas Fields
4.7.1.2 Rising Oil and Gas Investments
4.7.2 Restraints
4.7.2.1 High Volatility of Crude Oil Prices
4.8 Supply Chain Analysis
4.9 PESTLE Analysis
4.10 Investment Analysis
4.11 Key Oil and Gas Statistics
4.11.1 Crude Oil Production and Consumption, till 2023
4.11.2 Natural Gas Production and Consumption, till 2023
4.11.3 Active Rig Count, till May 2024 (Includes Onshore, Offshore, Drilled for, etc.)
4.11.4 Extraction Sites Count, March 2024 (Includes Discovered, in Development, Operating, etc.)
4.11.5 Extraction Sites Count, March 2024 (Includes Discovered, in Development, Operating, etc.)
4.11.6 Extraction Sites Count, March 2024 (Includes Discovered, in Development, Operating, etc.)
5. MARKET SEGMENTATION - BY LOCATION OF DEPLOYMENT
5.1 Onshore
5.2 Offshore
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 China National Petroleum Corporation (CNPC)
6.3.2 China Petroleum & Chemical Corporation (Sinopec)
6.3.3 China National Offshore Oil Corporation (CNOOC)
6.3.4 ExxonMobil Corporation
6.3.5 Chevron Corporation
6.3.6 BP PLC
6.3.7 Shell PLC
- *List Not Exhaustive
6.4 List of Other Prominent Companies (Company Name, Headquarter, Relevant Products & Services, Contact Details, etc.)
6.5 Market Ranking/Share (%) Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 China's Untapped Oil and Gas Potential
China Oil And Gas Upstream Indsutry Segmentation
Upstream oil and gas refers to the exploration and production industries for petroleum. This includes the processes involved in searching for potential underground or underwater crude oil and natural gas fields, drilling exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil or raw natural gas to the surface.
The Chinese oil and gas upstream market is segmented by location of deployment. By location of deployment, the market is segmented into onshore and offshore. The report offers the market sizes and forecasts in value (USD) for the above segments.
China Oil And Gas Upstream Market Research Faqs
How big is the China Oil And Gas Upstream Market?
The China Oil And Gas Upstream Market size is expected to reach USD 53.39 billion in 2024 and grow at a CAGR of 1.89% to reach USD 58.63 billion by 2029.
What is the current China Oil And Gas Upstream Market size?
In 2024, the China Oil And Gas Upstream Market size is expected to reach USD 53.39 billion.
Who are the key players in China Oil And Gas Upstream Market?
China National Petroleum Corporation, China Petroleum & Chemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC), Exxon Mobil Corporation and Chevron Corporation are the major companies operating in the China Oil And Gas Upstream Market.
What years does this China Oil And Gas Upstream Market cover, and what was the market size in 2023?
In 2023, the China Oil And Gas Upstream Market size was estimated at USD 52.38 billion. The report covers the China Oil And Gas Upstream Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Oil And Gas Upstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Oil And Gas Upstream Industry Report
Statistics for the 2024 China Oil & Gas Upstream market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Oil & Gas Upstream analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
