China has become the world\u2019s largest renewable energy producer by accelerating the rollout of solar, wind, and battery storage projects, while in recent years it has also increased its oil and gas output. Efforts to expand its fossil fuel industry are expected to boost China\u2019s energy self-sufficiency over the coming decade, helping to reduce its dependence on other countries for oil and gas imports. The diversification of its energy sources will help ensure China\u2019s energy security at a time when so many other countries are failing to diversify sufficiently.\u00a0<\/p>\n
In 2025, China\u2019s crude output was a record 216 million metric tonnes<\/a>, according to the National Energy Administration. Meanwhile, China\u2019s natural gas output increased by 10 billion cubic metres last year. Chinese oil and gas firms also expanded the country\u2019s reserves, adding 1.32 billion metric tonnes of oil equivalent of recoverable oil and gas volumes. Between January and July this year, China\u2019s crude output increased by 0.9 per cent, to 4.42 million bpd<\/a>, according to National Bureau of Statistics data.\u00a0<\/p>\n The significant increase in China\u2019s oil and gas output is down to government policies aimed at reducing reliance on energy imports. China has filled its strategic oil reserves with discounted Russian and Iranian crude in recent years as it works to increase its own production capacity. This helped isolate it from the price increases of recent months, driven by the ongoing Iran War and the closure of the Strait of Hormuz.\u00a0<\/p>\n Set OilPrice.com as a preferred source in Google here<\/a>.<\/p>\n China plans to further strengthen its national petroleum reserves to shield the country from future global disruptions. The government aims to expand strategic overland import corridors to enhance connectivity. It will also diversify its oil and gas suppliers to reduce the threat of geopolitical disruptions.\u00a0<\/p>\n China has already increased oil purchases from West Africa, Latin America, and Russia, helping it mitigate the disruption much of the world has faced due to constraints on oil exports from the Middle East. China reduced its crude imports<\/a> from the Middle East from 55.4 per cent to 44.6 per cent from the first half of 2025 to the same period in 2026, according to calculations by S&P Global Energy.<\/p>\n However, China has not yet achieved self-sufficiency in oil and gas, as its fossil fuel demand continues to rise in line with industrial expansion and population growth. Nevertheless, increasing its oil and gas output has helped China to reduce its fossil fuel imports. China\u2019s oil imports fell<\/a> to the lowest since 2017 in May, at an average of 7.8 million barrels daily.<\/p>\n As part of the government\u2019s 15th Five-Year Plan, China plans to increase its domestic oil and gas production<\/a> to 440 million metric tonnes of oil equivalent by 2030. It will also expand its long-distance pipeline network by an additional 20,000 km, bringing the total to 220,000 km by the end of the decade.<\/p>\n The government also plans to expand the country\u2019s natural gas storage capacity to exceed 13 per cent of national consumption, while the annual capacity of LNG terminals is expected to reach 200 million metric tonnes. To this end, it plans to launch a new round of strategic oil and gas exploration auctions this year to attract greater investment to the sector and help increase output.\u00a0<\/p>\n The plan also highlights<\/a> the need to achieve breakthroughs in key technologies for the safe and efficient development of deep onshore and deepwater offshore resources, and aims to advance the exploration and production of unconventional fossil fuel resources, including continental shale oil, deep shale gas, and deep coalbed methane.<\/p>\n China will also focus on developing its carbon capture and storage capabilities to support a green transition and net-zero aims, with the CO? injection volume expected to reach 10 million metric tonnes per year by 2030. China\u2019s National Development and Reform Commission stated on its website that China intends to establish a modern oil and gas supply system by 2030, with a firm focus on the dual priorities of safeguarding energy security and advancing green and low-carbon development.\u00a0<\/p>\n The government will also invest in advancing cleantech and support domestic manufacturing in the energy industry. This will be supported by greater digitalisation. The director of the China Centre for Energy Economics Research at Xiamen University, Lin Boqiang, said<\/a>, \u201cGeographically, we are short on oil and gas. But China has every confidence in facing its energy challenges, for our reserves and capacity in wind and solar power are strong.\u201d<\/p>\n Having massively ramped up its renewable energy and battery storage capacity over the last decade, China is now aiming to expand its domestic oil and gas output. Although China has established ambitious climate targets, the government\u2019s main focus is on ensuring the country\u2019s energy security by diversifying and reducing dependence on energy imports. These policies have already helped shield China from recent geopolitical disruptions to oil and gas trade, demonstrating their effectiveness.\u00a0<\/p>\n By Felicity Bradstock for Oilprice.com<\/a>\u00a0<\/p>\n