Kathmandu. US President Donald Trump’s new sanctions on Russian oil have left India and China confused. Chinese refiners have suspended sea exports of Russian oil at a time when Indian companies are considering limiting purchases of Russian oil.
China used to buy large quantities of crude oil from Russia. The new sanctions are a major setback for China. However, in the midst of this shock, China has discovered an important treasure. That’s crude oil and natural gas.
A new well in China’s Sichuan Basin has discovered large quantities of shale oil and gas. According to China Central Television (CCTV), the well produces 38.64 cubic meters of oil and 10,000 cubic meters of gas daily.
After extensive research, the researchers confirmed that this is a new shale oil field with an estimated reserves of more than 100 million tons. The discovery is seen as a major step in expanding China’s shale resources.
shale oil extremely important to China
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Shale oil is an unconventional petroleum resource found in shale rocks. It has huge potential for the future. This is important for China’s long-term and stable crude oil production.
The well is named Kiluye-1 located in Qichiyang District of Chongqing Municipality. It was drilled in shale deposits at a depth of more than 2,000 meters. It spanned a horizontal stretch of about two miles [2 km] and revealed an oil-bearing shale layer about 10 feet [40 m] thick.
According to reports, this discovery indicates that a new high-quality shale layer spanning about 1,000 square kilometers is located in this area. Which can be explored in the future.
According to a representative of Sinopec’s exploration branch, the shale oil recovered from the Kiluye-1 well is located at shallow depths and is of very good quality. This is expected to generate significant economic benefits.
Relief to China amid US sanctions on Russian oil
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U.S. President Donald Trump has resumed targeting Russia after a summit with Russian President Vladimir Putin in Budapest was canceled. He has now imposed sanctions on Russia’s two biggest oil companies, Rosneft and Lukoil. In response to this ban, Indian oil refiners are considering limiting or stopping their crude oil purchases from Russia.
According to Reuters, many Chinese companies are also suspending the purchase of Russian oil by sea to avoid sanctions. China buys about 14 million barrels of Russian oil by sea every day. Most of these purchases are made by private Chinese companies.
Oil prices may rise as Russian oil supplies to China decrease. This may force you to turn to other sources.
