The region’s total oil proved recoverable reserves amounted to 2.56 billion tonnes, representing 1.1% of the global oil reserves. Top countries per oil recoverable reserves include China (2,521 mt), Mongolia (35 mt) and Taiwan (0.5 mt). Similarly, top producing countries include China (214.6 mt), Mongolia (1 mt) and Japan (0.6 mt).

China is the leader in oil production, consumption and reserves in the region. The total proven oil reserves in 2015 were estimated at 18.5 billion barrels, production was 4.3 million b/d and consumption nearly 12 million b/d. IEA estimates show large amount of shale oil, 32.3 billion barrels in the Junggar, Tarim and Songliao basins. The largest discovery of unconventional (tight) oil occurred in May 2015 at in the Changqing oilfield, estimated to have 730 million barrels of oil resources in place.

China is a huge energy consumer and a net importer of crude oil. The oil sector is dominated by three large state-owned companies: PetroChina (56% market share), Sinopec (20%) and CNOOC (24%). Low oil prices have also affected China, as reduced profits slashed the budgets for upstream investments, high-cost maintenance and exploration. Crude oil production has been rapidly in the past months of year 2016, and it is estimated that this trend will continue over the next decade. Crude oil imports are set to continue growing due to low oil price, depleting conventional oil resources and increasing investment in natural gas. China’s largest oil trading partners are Saudi Arabia (15.1%), Russia (12.6%) and Angola (11.5%). Major oil pipelines include Rizaho-Dongming in the province of Shandong, EPSO (Phase I and II) in the province of Heilongjiang, Atasu-Alashankou in the province of Xinjiang, and Myanmar-China in the province of Kunming.

According to BMI, Japan’s crude oil and liquids production will follow a long-term decline over the period 2016 to 2025, from 16,920 b/d to 14,570 b/d due to a lack of new oil discoveries and maturation of existing fields. The vast majority of Japan’s oil output (87%) comes from processing gains from its large refining sector. The country has also shale oil deposits and several projects have been announced, but are currently facing delays. Commercial production of shale oil started in March 2014 by Japan Petroleum Exploration Company in the Ayukawa oil field, with initial daily production of 220 b/d. The company’s drilling operation at the Fukumezawa field has been stalling since the end of 2014.

Taiwan has small proven oil reserves and the production is marginal as well. It is estimated the country’s oil output will steadily decline to 2025 from the 1,720 b/d in 2015, due to a lack of significant oil discoveries and exploration plans.

Oil Production

Oil Production216million tonnes per year

Oil Recoverable Reserves2.56billion tonnes

Oil Recoverable Reserves by region

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Oil Recoverable Reserves by country

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Top Oil producing countries

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Note

Oil data represents Crude Oil only, for extra-heavy oil and oil shale please refer to the WER 2013 report oil chapter.