According to a report by China Daily on February 26
China’s oil and gas sector is entering a transformative phase as the country launches its 15th Five-Year Plan (2026-30), aiming to balance energy security with an accelerated shift toward greener, digitally enabled operations.
Following record production levels in 2025, the National Energy Administration (NEA) has outlined a strategic roadmap to develop the sector into a modern, resilient pillar of China’s energy system.
“Oil and gas remain core to China’s economy, providing both energy and industrial feedstock, while also serving as a platform to advance the country’s energy transition,” said Liu Hong, director of the NEA’s oil and gas department.
During the 14th Five-Year Plan (2021-25), China saw annual investment in exploration and development average 387 billion yuan ($56.6 billion), a 48% increase over the previous cycle. Domestic crude production reached approximately 216 million metric tons, while natural gas output climbed to 261.9 billion cubic meters, marking nine consecutive years of double-digit growth in natural gas output.
China’s long-distance oil and gas pipelines now exceed 200,000 kilometers, with storage capacity of 54 billion cubic meters and gas transmission capacity over 400 billion cubic meters per year, ensuring stable supply amid global market volatility.
Looking ahead, the NEA’s 15th Five-Year Plan emphasizes integration of fossil fuels with renewable energy and digital technologies. Pilot programs have already begun, including using green electricity to enhance oil production and employing carbon capture, utilization, and storage (CCUS) technologies to inject over 11 million tons of CO₂ back into oilfields.
“Existing oil and gas fields can evolve into multi-energy hubs, combining solar, wind, and geothermal power with existing infrastructure,” Liu said, noting that artificial intelligence applications across exploration, predictive grid management, and supply-demand forecasting will be prioritized in 2026.
The roadmap also stresses upstream expansion, infrastructure connectivity, and exploration of green hydrogen transport through existing pipelines, while deepening international cooperation to create a more efficient global energy market.
Experts say the strategy positions China not just to secure domestic energy supplies, but also to provide a model for integrating traditional fossil fuels with low-carbon and smart energy solutions — a blueprint that could inform global energy transition efforts.