Summary of the Oil and Gas Industry in 2025 and Outlook for 2026
Introduction
2025 marked a deepening year for the oil and gas industry in anchoring its core goals of energy security, green transition, and digital-intelligent upgrading. Covering the entire industrial chain including exploration and development, production and operation, engineering technical services, oil and gas storage, long-distance pipelines and urban gas, the industry, led by leading enterprises such as CNPC, Sinopec, CNOOC and Yanchang Oilfield, witnessed remarkable results in the stable and increased production of major oilfields including CNPC's Daqing Oilfield, Changqing Oilfield, Tarim Oilfield, Sinopec's Shengli Oilfield and CNOOC's Bohai Oilfield. International oil and gas businesses accelerated their expansion and standardized integration, Chinese enterprises achieved breakthroughs in overseas oil and gas equity layout at multiple points, and the efficiency of the national pipeline network's "unified national network" was continuously released, realizing a dual breakthrough in steady scale growth and structural optimization. Standing at a critical juncture in the advancement of the 15th Five-Year Plan, a systematic review of development characteristics and accurate judgment of future trends are of core significance for driving the transformation of the oil and gas industry from "scale expansion" to "quality and efficiency improvement".
I. Industry Summary of 2025
(I) Fundamental Industry Characteristics
1.Steady progress in scale and volume, with synergetic efforts across the entire industrial chain
In 2025, the total output value of China's domestic oil and gas industry exceeded 18 trillion yuan, a year-on-year increase of 7.5%. Crude oil production reached 210 million tons, up 2.3% year-on-year; natural gas production exceeded 240 billion cubic meters, a year-on-year rise of 6.8%, marking eight consecutive years of annual output growth exceeding 10 billion cubic meters. Among them, CNPC's oil and gas equivalent exceeded 240 million tons, with its Daqing Oilfield achieving stable crude oil production of 30 million tons for 11 consecutive years and natural gas production surging to 6.1 billion cubic meters; Changqing Oilfield's oil and gas equivalent exceeded 60 million tons for six consecutive years, crude oil annual output maintained high-quality stable production of over 25 million tons for six straight years, natural gas production exceeded 51 billion cubic meters, emerging as China's largest oil and gas production base; Tarim Oilfield's ultra-deep oil and gas output accounted for an increased proportion of 65%, with annual oil and gas equivalent output exceeding 33 million tons, becoming the core support of the western energy hub; Sinopec's oil and gas production rose steadily to 110 million tons, and Shengli Oilfield built China's first 100-million-ton shale oilfield; CNOOC's offshore oil and gas output accounted for over 65% of the total, and Bohai Oilfield's annual oil and gas equivalent output exceeded 40 million tons, becoming China's largest crude oil production base; Yanchang Oilfield's crude oil production stabilized above 11 million tons. The four major enterprises contributed more than 85% of the national oil and gas output in total. The national pipeline network's annual oil transmission via long-distance pipelines exceeded 700 million tons and natural gas transmission surpassed 450 billion cubic meters, constructing a stable and reliable energy supply system.
2.Multiple breakthroughs in exploration and development, enhanced resource support capacity
Focusing on basins such as the Ordos and Tarim, CNPC realized digital empowerment across the entire business chain relying on the independently controllable Dream Cloud Industrial Internet Platform (developed over eight years with four iterations). Centered on the core of "two unifications and one general application", the platform has built a "complete eight-layer architecture" and "four core capabilities", emerging as the world's largest industrial internet platform in the oil and gas industry with the most comprehensive business coverage. Pioneering the "Lianhuanhu" technical architecture, the platform integrates over 60 years of exploration and development data, building Asia's largest oil and gas data lake (with a total data volume of 10PB, covering more than 500,000 wells and over 8,000 seismic work areas), breaking the bottleneck of "data silos". Leveraging the data sharing and intelligent analysis capabilities of Dream Cloud, Changqing Oilfield focused on the overall exploration of coalbed methane, continued to advance the exploration of new types of shale oil and expand new fields of tight oil and gas exploration around the verification of scale reserves and expansion of new discoveries, overfulfilling the tasks of adding three types of oil and gas reserves and economically recoverable reserves. China's first sand-free fracturing test for coalbed methane was successfully conducted in the Mizhi North Block of the Mengshaan Gas Field; through the Dream Cloud collaborative research environment, Daqing Oilfield delved deep into the Songliao Basin, tapped the potential of old shallow and middle zones, accelerated the overall development of the Maokou Formation in Sichuan and Chongqing, achieved a breakthrough in the evaluation and reserve building of the deep strata in eastern Tarim, with natural gas production increasing by nearly 1.5 billion cubic meters compared with 2020, and the output of the national demonstration zone for Gulong continental shale oil achieved a leapfrog breakthrough from zero to 1 million tons; relying on 10 transformation scenarios of Dream Cloud and the "Tantu" collaborative work platform, Tarim Oilfield enabled more than 600 researchers to realize "three sharing and four coordination", made major exploration discoveries in areas such as the Kuqa Depression and Tabei Uplift, achieved a breakthrough in ultra-deep oil and gas reservoir prediction technology, added 3 super 100-million-ton reserve blocks. After the application of the platform, data preparation efficiency increased by 100% and application R&D efficiency rose by 30%; Jilin Oilfield realized the full-process online management of geophysical exploration projects through the Dream Cloud A6 platform, enabling researchers to retrieve seismic interpretation and reservoir prediction results in real time and conduct remote synchronous research and exchanges, greatly improving exploration efficiency.
Sinopec made major discoveries in the exploration of deep shale gas in the Sichuan Basin and ultra-deep oil reservoirs in the Tarim Basin, with the annual output of the Fuling Shale Gas Field stabilizing above 13 billion cubic meters; Shengli Oilfield advanced into the 9,000-meter deep clastic rock oil and gas reservoirs in the Junggar Basin, built China's first 100-million-ton shale oilfield, and achieved a historic leap in shale oil theoretical technology. CNOOC's Lingshui 17-2 Gas Field in the western South China Sea continued to release production capacity, with deepwater exploration technology leaping from 3,000 meters to 5,000 meters; Bohai Oilfield adhered to the dual-drive of rapid reserve building of new oilfields and benefit tapping of old oilfields, successively discovered multiple 100-million-ton oil and gas fields such as Bozhong 19-6 and Kenli 6-1. In 2025, the number of drilling and completion operations hit a record high, promoting the rapid completion and commissioning of 100-million-ton oilfields such as Kenli 10-2 and Bozhong 26-6. Based on the Ordos Basin, Yanchang Oilfield deepened the exploration and evaluation of tight oil and shale oil, added proven reserves of over 80 million tons, and realized a virtuous circle of resource replacement through the step-out exploration of old oilfields.
3.Improved quality and efficiency in oil and gas production, accelerated green transition
In the crude oil production sector, centering on core technologies such as fine water injection, reservoir comprehensive management and enhanced oil recovery, Changqing Oilfield realized real-time production monitoring by virtue of the Internet of Things access capability of Dream Cloud (which can connect millions of industrial devices). The two flagship projects of the listed company achieved stable production of over 2 million tons continuously, shale oil development made a historic breakthrough, with daily output exceeding 10,000 tons for the first time, building China's largest shale oil production base, whose annual output accounted for about half of CNPC's total shale oil output; Daqing Oilfield slowed down the production decline rate through fine development technologies, firmly consolidated the 30 million-ton stable production target, and the rapid release of shale oil production capacity became a new growth pole; Tarim Oilfield applied the remote consultation and intelligent optimization functions of Dream Cloud to reduce the complex rate of drilling accidents, with ultra-deep crude oil annual output exceeding 8 million tons; Sinopec's Shengli Oilfield applied chemical flooding technology, increasing the block recovery rate by more than 13.7%, and at the same time stabilized the basic production plate of old oilfields through secondary development and tapping potential; Bohai Oilfield deepened the fine characterization of reservoirs and research on remaining oil distribution, with remarkable results achieved in the secondary adjustment projects of Suizhong 36-1/Lvda 5-2 Oilfield, the annual crude oil output of old oilfields exceeding 32 million tons, and the comprehensive adjustment project of Caofeidian 6-4 Oilfield yielding an annual oil output of over 1 million tons; Yanchang Oilfield implemented secondary development of old oilfields, raising the recovery rate to 38%, and tapping the potential of low-efficiency wells to increase production by more than 500,000 tons.
In terms of natural gas production, guided by the "five key" technical routes, Changqing Oilfield maintained a strong supply capacity of over 30,000 gas wells through measures such as production increase of peak-shaving wells, drainage and production of water-producing wells, and potential tapping of low-efficiency wells. As China's largest onshore integrated gas field, the Sulige Gas Field realized the large-scale and efficient development of tight gas; Daqing Oilfield's natural gas production achieved steady growth for 15 consecutive years, surging to 6.1 billion cubic meters; the Kelasu-Keshen Gas Field and Bozhi-Dabei Gas Field of Tarim Oilfield continued to release production capacity, with natural gas annual output exceeding 30 billion cubic meters, becoming the main gas source of the West-East Gas Pipeline; CNOOC Zhanjiang Branch's Weizhou 12-8 Gas Field was put into operation, adding a gas production capacity of over 1.5 billion cubic meters annually.
Green transition work was comprehensively accelerated. Changqing Oilfield built a development pattern of "oil and gas + new energy + ecological protection", having built more than 2,900 photovoltaic power stations with annual new energy power generation exceeding 557 million kWh. The first pilot project of hydrogen blending transportation in in-service natural gas pipelines filled the domestic gap, Shaanxi's first external geothermal heating project was put into operation, and the CCUS industrial project sequestered a total of over 1 million tons of carbon dioxide; Daqing Oilfield fully built a green power direct supply and on-site consumption system, with self-consumed green power generation reaching 1.136 billion kWh in 2025. The independently developed carbon dioxide flooding technology sequestered a total of 1.362 million tons of carbon; Tarim Oilfield promoted the construction of wind-solar-gas-storage integrated projects, with the green power substitution rate in oilfield production areas reaching 18%; Shengli Oilfield built China's first "source-grid-load-storage" integrated smart energy system in the oil and gas field, and the CCUS full-chain technical equipment system reached an advanced level; Bohai Oilfield reinjected associated gas extracted into the formation in the Caofeidian 6-4 Oilfield project, reducing carbon dioxide emissions by about 13,000 tons; Yanchang Oilfield's clean energy substitution rate rose to 12%.
4.Development Driving Forces
Policy guidance for energy security and green transition: The national 15th Five-Year Energy Plan clarified the goals of stable and increased oil and gas production, providing special support for unconventional oil and gas development, pipeline network construction and low-carbon technology R&D; the dual control of energy consumption and the "dual carbon" goals forced the industry to transform into a comprehensive energy service provider.
Technological innovation driving industrial upgrading: The industry's R&D investment ratio rose to 3.2%, and CNPC, Sinopec and other enterprises established national-level R&D centers; Changqing Oilfield, Daqing Oilfield and others built innovation platforms with universities, and jointly developed technologies such as shale oil development and CCUS that have been industrialized; Dream Cloud drove data technology innovation, and the OSDU standard guided the digital-intelligent transformation process of the oil and gas industry.
Market demand and overseas equity support: With the sustained recovery of China's economy, the demand for oil and gas in the industrial and chemical sectors grew steadily; the consumer market of urban gas and natural gas power generation expanded; the acquisition of high-quality overseas resources and the landing of equity projects provided new space for industry growth and effectively dispersed geopolitical risks.
II. Industry Outlook for 2026
1. Development Trend
The industry will maintain steady growth as a whole. It is expected that the total output value will exceed 19.5 trillion yuan in 2026, a year-on-year increase of 8.3%; crude oil production will stabilize at around 215 million tons, and natural gas production will exceed 255 billion cubic meters, a year-on-year rise of 6.2%. Digital-intelligence, greenization, internationalization and integration will become the main development lines, and the industry's transformation from "resource-driven" to "innovation-driven" will accelerate. Major oilfields such as Changqing Oilfield, Daqing Oilfield, Tarim Oilfield, Shengli Oilfield and Bohai Oilfield will continue to play a supporting role in production. The depth of Chinese enterprises' overseas oil and gas equity layout and the level of standardized integration will be further improved.
2. Core Trends
Exploration and development expanding to deep and unconventional areas: CNPC and Sinopec will increase exploration efforts in the ultra-deep strata of the Tarim and Sichuan Basins; Changqing Oilfield will expand the development scale of shale oil and coalbed methane and deepen the efficient development of tight gas; Daqing Oilfield will expand the development of Gulong shale oil; Tarim Oilfield will promote the large-scale development of ultra-deep oil and gas; Shengli Oilfield will deepen the development of shale oilfields and deep exploration; Bohai Oilfield will advance deepwater exploration in the South China Sea and the construction of a trillion-cubic-meter gas area; the proportion of unconventional oil and gas output will rise to 28%, becoming the core engine of production growth.
In-depth integration of digital-intelligent transformation and OSDU: The application rate of industrial internet platforms will exceed 35%, and 5G-A, digital twin and AI large models will fully empower the entire industrial chain; CNPC will promote the iterative upgrading of Dream Cloud, deepen the "platform + ecology" strategy, expand the application coverage of 57 types of shared capabilities and more than 200 public components, and at the same time accelerate the localized adaptation of the OSDU standard to build a cross-enterprise data sharing platform based on the OSDU architecture; Changqing Oilfield will deepen the application of the shale oil IoT cloud platform and promote the intelligent regulation of multi-well linkage; the industry data standard system will be gradually unified, providing technical support for data interconnection between overseas equity projects and domestic businesses, and the efficiency of data value mining will be significantly improved.
Further advancement of green and low-carbon transition: CCUS technology will realize large-scale commercial application, with the industry's carbon sequestration capacity exceeding 50 million tons per year; Changqing Oilfield will promote the completion and commissioning of wind-solar integrated projects and expand the application scope of CCUS-EGR technology; Daqing Oilfield will expand the scale of green power projects; Tarim Oilfield will raise the green power substitution rate to 25%; Shengli Oilfield will improve the commercialization level of CCUS; the application scope of green hydrogen will be expanded, with the production capacity of green hydrogen projects of CNPC and Sinopec increasing by 100%; the industry's clean energy substitution rate will rise to 15%.
Quality and efficiency improvement of overseas oil and gas equity layout: The "Big Three National Oil Companies" will deepen the layout in key regions such as Central Asia, South America and Southeast Asia, and expand cooperation in high-end fields such as deep-sea and unconventional oil and gas. CNPC plans to rely on the overseas version of Dream Cloud to improve the remote management and control and synergy efficiency of projects in Iraq and Brazil; Sinopec will focus on the production capacity release of North African blocks; CNOOC will advance the exploration and development of the Indonesia Gaea Block; the cooperation model will be further optimized, strengthening joint operations and downstream market integration, and private enterprises will participate more in small and medium-sized equity projects; the application of the OSDU standard will improve the data management efficiency of overseas projects and promote the mutual learning of technologies and management experience between domestic and foreign projects.
Continuous improvement of infrastructure network: The national pipeline network will advance projects such as the 4th West-East Gas Pipeline and the southern section of the China-Russia Eastern Route, with the total mileage of long-distance pipelines exceeding 180,000 kilometers; the construction of gas storage facilities will be accelerated, with the national working gas volume of gas storage reaching 35 billion cubic meters; the completion rate of the transformation of old urban gas pipelines will exceed 60%, and the coverage rate of smart gas terminals will rise to 80%.
3. Core Growth Tracks
Unconventional oil and gas development: The compound annual growth rate of shale oil, shale gas, tight oil and other fields is expected to exceed 10%; the efficient development technologies of various major oilfields will be continuously upgraded and development costs will be further reduced. Unconventional oil and gas development will become the core sector driving the growth of industry output, and technological iteration and cost optimization will be the key to competition.
Digital-intelligent equipment and standardized services: The demand for intelligent inspection robots, remote control systems, oil and gas-specific AI algorithms and other products will surge; the market scale of customized development based on Dream Cloud and data governance services based on the OSDU standard will increase by more than 30% year-on-year, supporting the digital operation of overseas equity projects. The industrial ecology of digital-intelligent services will gradually take shape, and the market space will continue to expand.
Green and low-carbon technologies and products: CCUS complete sets of equipment, green hydrogen equipment, low-carbon refining technologies and other products will become R&D hotspots, with the market scale growing by more than 40%; the export of low-carbon technologies by major oilfields will become a new growth point, supporting the green transition of overseas equity projects. The commercialization process of green and low-carbon technical products will accelerate, becoming a new profit growth point for the industry.
International oil and gas engineering and equity operation services: Oil and gas engineering technical services will further expand into the international high-end market, and the demand for services such as overseas equity project operation and management, standardized consulting and risk control will continue to grow, forming a full-chain overseas service capability. The synergy effect of international engineering services and equity operation will become prominent, and the level of internationalized services will be steadily improved.
4. Enterprise Transformation Directions
Differentiated development and collaborative layout: CNPC, Sinopec and CNOOC will focus on high-end fields such as deep strata and deep sea, strengthen the quality and efficiency improvement of major oilfields and the linkage of overseas equity projects. CNPC will continue to strengthen Dream Cloud and build a world-class oil and gas industrial internet platform; Yanchang Oilfield will deepen its presence in the regional market; the national pipeline network will optimize the operation of the "unified national network" and improve the transportation guarantee capacity for overseas equity oil and gas; enterprises will strengthen data sharing and technical cooperation, and build an industrial ecosystem based on the OSDU standard.
Comprehensive improvement of innovation capability: Increase investment in core technology R&D to break through the bottleneck links such as high-end equipment, low-carbon technologies and digital-intelligent platforms; deepen industry-university-research cooperation, accelerate the iteration of technological achievements such as shale oil development, CCUS and OSDU localization, and provide technical support for overseas equity projects.
Construction of green low-carbon and ESG system: Formulate a clear carbon emission reduction roadmap and increase investment in low-carbon technologies; improve the ESG management system, incorporate green development and social responsibility into the evaluation of core competitiveness, and adapt to the compliance requirements of overseas equity projects.
International equity and standardized transformation: Improve the risk control capability of overseas projects and deepen localized operations; actively participate in the formulation of international standards, promote the "going global" of Chinese technologies and standards, realize the coordinated development of overseas equity projects and domestic businesses, and enhance international competitiveness.
