Overview: Xinjiang's oil industry has developed across the board to benefit China

After 20 years of continuous development, Xinjiang’s position in the Chinese oil industry has become a pivotal one: more than one-eighth of the country's annual crude oil production, nearly 30% of the country's natural gas production, and an annual oil and gas equivalent in Xinjiang since 2007. About 45 million tons, maintaining China's number one year after year.

Since the 1990s, the three major basins of Tarim, Junggar and Tuha in Xinjiang have escalated their oil campaigns rapidly. Hundreds of oil teams, including foreign oil companies, have entered the Gobi desert, and oil and gas exploration has continued to make breakthroughs. So far, Xinjiang has discovered a total of 4 billion tons of oil geological reserves and proven natural gas reserves of 1.5 trillion cubic meters, laying a solid foundation for the growth of oil and gas production.

While breakthroughs were made in oil and gas exploration, Xinjiang continued to increase production. In 1990, Xinjiang produced 7 million tons of crude oil, which accounted for 5% of the 138 million tons of China's crude oil output. In 2009, Xinjiang produced 25.12 million tons of crude oil, and ** produced 183 million tons of 13.3% of the country's crude oil. Due to the recovery of China’s economic demand for oil, 199 million tons of crude oil were imported in 2009, and the external dependence on crude oil reached 51.3%. The four major oil fields in Karamay, Tarim, Tuha, and Tahe in Xinjiang were all put into full production to stabilize and increase production of China’s crude oil. Protecting oil and gas supply has made a positive contribution.

The natural gas industry in Xinjiang has achieved a historic leap in 20 years. In 1990, Xinjiang produced 500 million cubic meters of gas, only 3% of the country. With the completion and production of the West-East Gas Pipeline project in 2004, Xinjiang’s natural gas output has been steadily increasing. In 2005, it produced 10.6 billion cubic meters of gas and became China’s largest natural gas production province. In 2006, Xinjiang produced 16.4 billion cubic meters of gas, making China the Natural gas production reached 59 billion cubic meters, ranking 11th in the world and becoming the world's largest natural gas producer for the first time. By the end of 2010, the West-East Gas Pipeline Project has already provided over 70 billion cubic meters of gas to 14 provinces, autonomous regions, and municipalities, including Beijing and Shanghai. China's 300 million people and more than 300 industrial enterprises have benefited from it.

Due to the resources and geo-advantages of New Star, it has undertaken more missions in maintaining China's energy security. In July 2006, China’s first transnational crude oil pipeline, Kazakhstan-China Crude Oil Pipeline Phase I, was officially put into commercial operation; in October 2009, Phase II of the Sino-Kazakhstan Pipeline was put into commercial operation, and it has so far accumulated to China. It transports 30 million tons of crude oil. At the same time, due to the favorable effect of the first phase of the West-East Gas Pipeline Project, it also triggered the construction of the second-line West-East Gas Pipeline that will bring Central Asian natural gas into China.

Relying on the abundant natural gas, Xinjiang is clearly implementing the “gasification of Xinjiang” project. In 2010, it proposed to use 70% of Xinjiang's cities and towns for natural gas in 3 years. At present, Xinjiang's natural gas and civil engineering projects in southern Xinjiang have been progressing smoothly since the start of last July. Urumqi and other cities in northern Xinjiang also used natural gas from Central Asia at the end of 2009.