Status and prospects of deep oil and gas resources exploration and development onshore China

Many significant breakthroughs have been made in regards to deep oil and gas exploration and development in recent years. However, a systematic analysis has not been carried out on the progress, challenges, and development trend of exploration and development of onshore deep oil and gas resources in China. This paper summarizes five main points of deep oil and gas resources: (1) more gas, less oil, and complicated phases; (2) high temperature and pressure, as well as profoundly different basins or formations; (3) multiple hydrocarbon sources and accumulations; (4) relatively tight but effective large-scale reservoirs; and (5) complicated accumulation process and multi-stage reconstructions. Based on the exploration and development history of deep oil and gas, this paper points out China's take on it is at the “large-scale discovery stage during which significant achievements have been obtained in carbonate, clastic, and volcanic reservoirs. Nonetheless, there are still four challenges, namely: (1) complex hydrocarbon generation, reservoir evolution, and accumulation restriction on how to determine exploration orientation and targets; (2) long well drilling and completion period, as well as high well construction cost delay petroleum discovery and efficient development; (3) undeveloped logging technology for HPHT slim holes that cannot ensure accurate identification of hydrocarbon reservoir; and (4) effective development and large-scale utilization of unspecific recovery technique and equipment limit. Finally, by the comprehensive analysis, it is concluded that onshore deep oil and gas resources are mainly distributed in three areas of six basins in China. The areas have a vast exploration potential and have strategically successive resources. It is suggested that petroleum companies and universities, as well as research institutes, should work together to overcome difficulties in theory and practical technology for deep oil and gas exploration and development. Such partnership could develop fit-for-purpose theories and technical systems to support deep oil and gas development.