China has 2 billion tons of oil in reserves

The Ministry of Land and Resources recently gathered primary statistics on oil and gas reserves from PetroChina Company Limited, China Petroleum and Chemical Corporation, China National Offshore Oil Corporation Limited and some local companies. The data revealed that, as of the end of 2006, China had 2.043 billion tons of petroleum in remaining commercial recoverable reserves, and 2,449 billion cubic meters of natural gas in remaining commercial recoverable reserves.

Remaining commercial recoverable reserves (proved developed initial reserves minus accumulative output) is a term measuring the real economic benefits a state or a company can expect under certain economic and technical conditions. China revamped its national criteria for the classification of oil and gas reserves in 2004, in which it kept the traditional "measured petroleum initially in place", defined "proved initial reserves" "commercial recoverable reserves", and for the first time included "newly-found proven reserves". Statistics show that in 2006, China had 172 million tons of oil and 293.571 billion cubic meters of natural gas in newly-found proved reserves.

In 2006, China reported 949 million tons of oil in newly-found measured petroleum initially in place, a drop of 1.6 percent year on year; and 195 million tons of oil in newly-found proved initial reserves, up 10.8 percent. Six basins reported more than 10 million tons of oil in newly-found proven initial reserves. In 2006, the nation also registered 581.597 billion cubic meters of natural gas in newly-found proven measured petroleum initially in place, a drop of 6.2 percent.

There are two important measurements of oil resources: reserve replacement rate and the reserves/production ratio (R/P ratio). The former reflects reserve sustainability. In 2006 China reported 195 million tons of oil in newly-found proved initial reserves, and extracted 184 million tons. The rate is above 1 and shows that newly added reserves can make up for consumption.

The R/P ratio reflects the length of time that remaining oil reserves can be tapped under current production conditions. Since 1990 the ratio has been between 14 and 15, but stood at 11 in 2006. Oil prospecting across the country should be increased to boost resource guarantees.

By People's Daily Online