China's largest oil field, Daqing, will slash capital spending in 2017 by 20% from the amount one year earlier, owner PetroChina said late on Dec. 28, even as it looks to keep output steady.
China's oil majors have been cutting output in recent months to rein in spending, with older and inefficient fields like Daqing, in northern Heilongjiang, coming under scrutiny.
Daqing's investment in drilling and ground engineering projects will be reduced by 20%, PetroChina said in a statement on its website.
However, it aimed to boost production by 10% at each operating well and keep output at about 40 million tonnes of oil and gas by 2019. Oil and gas output was about 41 million tonnes in 2015.
Recommended Reading
Belcher: Energy Policy Outlook for 2024
2024-01-11 - Expect energy policy to be a dominant theme in the 2024 elections.
Tax Credit’s Silence on Blue Hydrogen Adds Uncertainty
2024-01-31 - Proposed rules for the 45V hydrogen production tax credit leave blue hydrogen up in the air, but producers planning to use natural gas with carbon capture and storage have options.
Hirs: Energy’s Best Strategy for the Presidential Election? Support Both Sides
2024-01-12 - The upcoming presidential election sees energy concerns on the “second page” of the ballot, making choosing a side a necessity.
California Reaming: Laws Spark Rancor, $6B in Chevron, Exxon Write Offs
2024-01-08 - Chevron and Exxon are set to write off billions of dollars worth of California assets because of strict laws and regulations that the companies say won’t change oil consumption but will shift profits to foreign producers such as Saudi Arabia.
Pitts: Is Vaca Muerta Argentina’s Permian?
2024-01-07 - Can Argentina’s Vaca Muerta Shale play truly garner the title of the Permian 2.0, which is a play that replicates the Permian Basin’s success? Yes, in terms of geology and game-changing potential, but no in terms of eventual production volumes.