China National Petroleum Corporation Strengthens Role as Key Player in Energy Supply Security

Ensuring Energy Supply as a Pillar

The energy security of a nation is crucial for the overall development of its economy and society. General Secretary Xi Jinping has proposed a new energy security strategy from the perspective of national development and security, emphasizing the importance of achieving a revolution in energy consumption, supply, technology, and systems, as well as enhancing international cooperation. He has stressed that “the energy bowl must be held firmly in our own hands,” providing fundamental guidance for balancing high-quality energy development with high-level safety in our country. As a central enterprise, China National Petroleum Corporation (CNPC) must deeply understand Xi Jinping’s significant remarks and directives, fully implement the decisions made by the Party Central Committee, and further deepen reforms to enhance corporate vitality, thereby ensuring robust energy support for the advancement of modernization in China.

1. Strengthening Domestic Supply Capability

China is the largest energy producer and consumer in the world. In 2024, domestic crude oil production is projected to reach 213 million tons, while consumption will be 756 million tons. Natural gas production is expected to be 246.4 billion cubic meters, with consumption at 426.05 billion cubic meters. The reliance on foreign oil and gas remains significant, making energy security a daunting task. Self-owned resources are the foundation of security, and enhancing domestic supply capabilities is a strategic support and reliable approach to ensuring energy security. As a key state-owned energy enterprise, CNPC must take on this responsibility, increasing oil and gas exploration and production to solidify domestic output.

We must resolutely undertake the mission of ensuring oil and gas security. China’s energy resource endowment is characterized by “rich coal, poor oil, and limited gas,” making oil and gas strategic and foundational resources for the nation. In recent years, CNPC has advanced a new round of strategic actions for mineral exploration, focusing on key basins and regions to intensify risk exploration efforts. Major breakthroughs and discoveries have been made in areas such as Ordos and Tarim in 2024, with domestic crude oil and natural gas equivalent production exceeding 200 million tons, accounting for a significant share of the nation’s total output. Among these, Daqing Oilfield has produced over 2.5 billion tons of crude oil, creating a miracle in the development of similar oilfields worldwide; Changqing Oilfield has achieved an oil and gas equivalent production of 66.66 million tons, maintaining its leading position in domestic oil and gas production.

Innovative theoretical technology is essential for the vigorous development of unconventional oil and gas resources. Unconventional oil and gas are important strategic replacement resources and key areas for increasing reserves and production. CNPC seizes development opportunities, continuously strengthens geological theory, and innovates exploration and development technologies, forming a comprehensive theoretical framework for unconventional oil and gas accumulation, horizontal well drilling completion technology, efficient fracturing techniques, and integrated geological engineering design. In 2023, CNPC successfully commissioned the world’s first deep coal horizontal well, the Jiping 2H well in the Daqi Gas Field, filling a gap in deep coal seam gas development in China. The Daqi Gas Field has become the largest deep coal seam gas field in the country, with annual production capacity exceeding 1.5 billion cubic meters.

In recent years, CNPC’s Jilin Oilfield has actively promoted green and low-carbon transformation development, focusing on creating a negative carbon development demonstration zone in aging oilfields. This initiative follows a “three-step” approach for clean replacement, strategic succession, and green transformation. The company has successfully implemented a centralized operation model for oil extraction, water injection, and transportation.

2. Strengthening International Energy Cooperation

China’s energy security is closely linked to global energy security. Ensuring national energy security cannot be achieved by isolating operations. It is essential to effectively utilize both domestic and international markets and resources, maintaining the stability of international energy resource supply chains through mutually beneficial cooperation. As a significant state-owned enterprise and a global company, CNPC plays a leading role in international energy cooperation, participating deeply in global energy governance, continuously optimizing its asset structure and business layout, enhancing energy resource utilization capabilities, and improving energy transport infrastructure to support national energy supply and accelerate the energy revolution while contributing positively to global energy development.

CNPC actively implements the “going out” strategy, focusing on major oil and gas projects to expand international operations. The company has established a complete industry chain and supply chain that integrates investment, trade, pipelines, and engineering. It participates in key oil and gas investment projects in countries along the Belt and Road Initiative, and significantly expands its oil and gas transit capacity across four multinational corridors in the northwest, northeast, southwest, and eastern offshore regions. CNPC’s international oil and gas trade network has now reached over 120 countries, effectively enhancing its diversified supply capabilities. Since 2000, CNPC has achieved a cumulative overseas production of oil and gas equivalent to over 1.45 billion tons and completed over 7.1 billion tons in trade volume, consistently maintaining an oil and gas output of over 100 million tons since 2019.

CNPC is committed to building a close energy cooperation community of shared interests, emphasizing strategic alignment and policy coordination with partner countries, and continuously promoting the compatibility and mutual recognition of technology, standards, and norms in energy cooperation.

In the past decade, CNPC has invested over $700 million in overseas public welfare projects, supporting local facilities in healthcare, education, and culture, benefiting over 10 million people.

3. Strengthening Energy Technology Innovation

Technological innovation is a core element in developing new productive forces. The 2024 Central Economic Work Conference emphasized the need to lead the development of new productive forces through technological innovation, strengthen fundamental research, and tackle key core technologies. As a technology and knowledge-intensive enterprise, CNPC prioritizes innovation as its primary development strategy, advancing technological innovation from both immediate breakthroughs and long-term efforts.

CNPC focuses on key core technologies that are essential for ensuring national energy security. The company has identified major directions and tasks for technological innovation based on the needs for high-quality development across exploration, refining, new energy, and new materials. Significant breakthroughs have been made, including the development of the world’s first automated drilling rig capable of reaching depths of 12,000 meters. In 2025, the company successfully drilled to a depth of 10,910 meters, marking a major milestone in deep earth exploration.

CNPC is also advancing the integration of digital technology and enterprise management, implementing a “smart oil” strategy to build a world-leading smart energy and chemical enterprise. The company’s domestically developed ERP system is expanding its application across subsidiaries, and smart technologies are increasingly integrated into production and management processes.

4. Deepening System and Mechanism Reform

Reforming systems and mechanisms is key to stimulating high-quality development in state-owned enterprises. In recent years, CNPC has adhered to strategic guidance and has comprehensively deepened reform, effectively sparking vitality and making significant advancements in governance and management.

Focusing on strategic goals, CNPC aims to become a world-class comprehensive international energy company. The company has set its strategic objectives and principles, emphasizing high-quality development, deepening reform and opening up, compliance with laws and regulations, and strict party governance. It has also implemented five strategic measures including talent development, quality improvement, and digital transformation.

Standing at a new starting point, CNPC will strengthen its commitment to party leadership, improve its strategic system, and enhance supply-side structural reforms to continuously invigorate the enterprise, contributing to national energy security and modernization efforts.