China has positioned itself as the world’s foremost renewable energy producer through rapid expansion of solar, wind, and battery storage infrastructure. Simultaneously, the country has significantly increased its oil and gas extraction efforts in recent years. According to the National Energy Administration, China’s crude oil output reached a record 216 million metric tonnes in 2025, while natural gas production rose by 10 billion cubic metres during the same period. Between January and July of this year, crude output climbed 0.9 percent to 4.42 million barrels per day.
The government’s dual-track strategy reflects a priority on energy security and reducing reliance on imports. Chinese firms have actively built strategic petroleum reserves using discounted crude from Russia and Iran, while also pursuing domestic production capacity expansion. This approach has helped insulate China from recent price volatility caused by the ongoing Iran War and the Strait of Hormuz closure. The country has simultaneously diversified its supplier base, reducing Middle Eastern crude purchases from 55.4 percent of total imports in the first half of 2025 to 44.6 percent by the corresponding period this year, while increasing purchases from West Africa, Latin America, and Russia.
Under its 15th Five-Year Plan, China intends to raise domestic oil and gas production to 440 million metric tonnes of oil equivalent by 2030. The government plans to extend its pipeline network by an additional 20,000 kilometers and expand natural gas storage capacity to exceed 13 percent of national consumption. LNG terminal capacity is projected to reach 200 million metric tonnes annually. Strategic exploration auctions will launch this year to attract greater sectoral investment.
China will also advance carbon capture and storage capabilities, targeting 10 million metric tonnes of CO2 injection annually by 2030. Development of unconventional resources including shale oil, shale gas, and coalbed methane remains a focus area. While China has not yet achieved energy self-sufficiency—its fossil fuel demand continues rising with industrial growth and population expansion—oil imports fell to their lowest level since 2017 in May. According to analysts, China’s combined approach of renewable leadership and expanded domestic fossil fuel capacity demonstrates confidence in addressing energy challenges while pursuing dual priorities of security and low-carbon development.
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