China today announced that it has discovered the country's largest tight oil deposit in northwest Shaanxi Province.
Tight oil is an unconventional energy which exits in petroleum-bearing formations like shale or sandstone. Commercial production from tight oil formations usually requires similar technology used in shale gas production.
China National Petroleum Corporation (CNPC) estimated that the reserve in the deposit is around 100 million tonnes, the largest one ever discovered in China, and will produce 700,000 tonnes of tight oil annually, state-run Xinhua news agency reported.
China is one of the world's largest oil buyers, and nearly 60 per cent of its oil consumption comes from imports. To keep external dependence under 61 per cent, the government is assessing solar and wind power as well as unconventional energy including shale gas and tight oil.
