ISSUING AUTHORITY:

National Energy Administration

DATE OF ISSUANCE:

February 27, 2023

On February 27, 2023, the National Energy Administration unveiled the Action Plan for Accelerating the Integrated Development of Oil and Gas Exploration and Development with New Energy (the “Action Plan”), which actively expands the scale of green electricity utilization by oil and gas enterprises.

The Action Plan proposed that by 2025, cumulative crude oil production would increase by more than 2 million metric tons via carbon dioxide flooding and other tertiary oil recovery methods supported by low-cost green electricity. The Action Plan further put forward some relating measures, which include to vigorously promote wind power and photovoltaic power generation in onshore oil and gas mining areas and surrounding areas, to coordinate the promotion of offshore wind power and oil and gas exploration and development, and to accelerate the improvement of the development, utilization, and storage capacity of new energy in the upstream of oil and gas.

With the implementation of the above measures and some supportive actions, such as improving the filing efficiency of relevant projects, enhancing technological innovation for the integrated development of oil and gas exploration, it is believed that the development and utilization of new energy in the field of oil and gas will facilitate the transformation and development of traditional oil and gas production and help upgrade the energy production and supply structures.

This Action Plan should also be considered within the context of China’s goal of achieving a reduction in energy consumption per unit of GDP(%) set out in its 14th 5 year plan covering the years 2021-2025 as well as the goal of achieving carbon neutrality by 2060.

Reference:

国家能源局关于印发加快油气勘探开发与新能源融合发展行动方案（2023-2025年）的通知