China's oil and gas production hits all-time high

China's oil and gas production climbed to a record high in 2025, bolstered by aggressive exploration in unconventional reserves and a surge in offshore output, according to a report released by a think tank on Tuesday.

Total oil and gas output reached 420 million metric tons of oil equivalent last year, more than 30 percent up compared to 2018 levels, according to the China National Petroleum Corp Economics and Technology Research Institute.

Both crude oil and natural gas production hit all-time highs, with crude oil output reaching 216 million tons while natural gas rising to 263.8 billion cubic meters, it said.

The institute attributed this growth to "advancements in exploration and development theories" and "upgrades in high-end equipment iteration", which have allowed China to tap into previously difficult-to-reach reserves.

A key driver behind the production spike is the rapid development of unconventional resources, which have become the primary engine for China's output growth, Wu Mouyuan, vice-president of the institute, said.

Unconventional gas currently accounts for about 46 percent of China's total gas output, with shale gas production exceeding 27 billion cubic meters. Shale oil output reached 7.7 million tons, a staggering eight-fold increase since 2018, he said.

Offshore exploration has emerged as another critical "growth pole", Wu said.

In 2025, offshore crude oil production surpassed 68 million tons, continuing a multi-year trend of offshore blocks providing a significant share of the country's incremental production.

Looking ahead to 2026, the institute projects a period of stabilization for crude oil, with production expected to remain steady at the 200 million tons mark, while natural gas is forecast to maintain a rapid growth trajectory as Beijing continues its push for a lower-carbon energy mix.