Chinese Energy Giants Accelerate Ultra-Deep Drilling to Boost Domestic Supply

Key Facts

1PetroChina has produced over 26 million tons of oil equivalents from reservoirs deeper than 6,000 meters in the Hade-Fuman field.

2Sinopec received government approval for ultra-deep shale gas reserves totaling 235.687 billion cubic meters in Sichuan province.

PetroChina has produced over 26 million tons of oil equivalents from reservoirs deeper than 6,000 meters in the Hade-Fuman field. ZeroHedge reported that China is intensifying ultra-deep drilling operations in the Xinjiang and Sichuan regions to increase domestic energy production and reduce reliance on crude oil imports.

Sinopec received government approval for ultra-deep shale gas reserves totaling 235.687 billion cubic meters in Sichuan province. Regarding market performance, PCCYF closed at $1.25 on October 8, 2026, while SNPMF closed at $0.575 on the same date, as state firms navigate the high costs and technical complexities of ultra-deep formations.