China hits JACKPOT amid US sanctions on Russian oil, finds ‘black gold’ worth Rs…; setback for Trump due to…

China Shale Oil Reserves: Amid fresh sanctions imposed by US President Doland Trump on Russian oil majors, China has discovered massive reserves of shale oil in the Sichuan Basin, dealing a major blow to Trump’s plan to hurt Beijing’s energy supply framework.

How much shale oil reserves were found?

According to Chinese media reports, large reserves of shale oil and gas have been found in the Sichuan Basin, which are estimated to be capable of producing 38.64 cubic meters of oil and 10,000 cubic meters of gas per day. Researchers have claimed that the newly-discovered shale oil field has estimated reserves of over 100 million tons, marking a major step forward in China’s energy independence.

Shale oil, an unconventional petroleum resource found in shale rocks, holds immense potential in the near future, and is believed to be crucial in maintaining China’s long-term and stable crude oil production.

The shale oil well, named Qiluye-1, is located in Qijiang district of Chongqing Municipality, and was drilled into shale reservoirs at a depth of over 2,000 meters, with a horizontal section extending more than two kilometers where around 40 meters of oil-bearing shale was found, according to a report by Beijing’s state-owned China Central Television (CCTV).

China shale oil reserves

The discovery found that new type of high-quality shale layer existing in the region, stretching over 1,000 kilometres, the report said. A representative from the Sinopec exploration branch said the shale oil found at the Qiluye-1 well is buried at a shallow depth and the reserves are of high-quality, assuring lucrative economic benefits, it added.

In 2022, China had unearthed a gigantic shale gas field in Qijiang,  with proven reserves of hundreds of cubic meters of shale gas, and now the shale reserve portfolio of the region has been further expanded by the discovery of the high-yields of shale oil and gas from the Qiluye-1 well.

As per the CCTV report, China produced over 705,000 tons of shale oil in 2024, up 308,000 tons from the previous year, while Sinopec has submitted over 200 million tons of proven geological reserves of shale oil and 12.35 billion cubic meters of gas in 2025.

How shale oil discovery provided relief to China amid US sanctions?

The discovery of huge shale oil reserves comes as a major relief to China following the fresh sanctions imposed on Russian oil by Doland Trump after his proposed summit with Russian President Vladimir Putin in Budapest was postponed.

The Trump administration has rolled out crippling sanctions against Rosneft and Lukoil, two of Russia’s largest crude oil producers, which has reportedly forced India(BHARAT)n oil refiners, including Mukesh Ambani-led Reliance Industries, to reconsider their oil purchases from Moscow.

Additionally, several Chinese firms are also suspending the purchase of Russian oil via the sea route to avoid the sanctions, Reuters reported.

China is the largest buyer of Russian oil, importing around 1.4 million barrels via sea daily, mostly from private Chinese companies. Thus, the new US sanctions are likely to make a huge impact on China’s energy security, and may result in higher oil prices in the country.

However, the discovery of shale oil reserves is expected to reduce China’s energy dependence in the near future and ensure its energy needs are met internally, making it immune to the impact of US sanctions on Russia and other producers.