China hit an oil and gas output record last year – why is Beijing warning of a squeeze?
Beijing’s energy regulator has set more modest production targets this year after a record 2025 as mature fields deplete and extraction challenges mount
China’s oil and gas sector is facing “enormous challenges” in boosting reserves and expanding production after achieving record-high output last year as part of Beijing’s energy security drive, according to a report released by the National Energy Administration (NEA).
Total oil and gas production reached a new high of 420 million tonnes of oil equivalent last year, with crude oil output hitting a record 216 million tonnes, which the NEA said had “considerably enhanced self-reliance”.
But the energy regulator warned further expansion was becoming increasingly difficult as the sector faced a dual squeeze: declining output from mature fields and higher costs to develop new frontiers, in the report published on Tuesday.