There are abundant proved oil reserves in Sudan and South Sudan, and Chinese companies are looking for petroleum business opportunities in Sudan and South Sudan. There is a bright future for cooperation in oil development in both Sudan and South Sudan. China, Sudan and South Sudan will continue to benefit from collaboration in petroleum industry.

 

Ultra-deep formations hold abundant oil and gas resources. As the demand for oil and gas increases with economic development, more and more efforts are putting into the exploration and development of oil and gas reservoirs in deep formations around the world. In China, the exploration and development of deep oil and gas are pacing up, especially in ultra-deep formations in the Sichuan Basin, Tarim Basin and Ordos Basin. The reservoirs in these basins feature extremely large depth (over 7000 m), super high temperature (150℃-210℃), super high pressure (over 150 MPa), high acid gas content (H₂S and CO₂), strong heterogeneity, and multiple pressure systems, which pose a series of challenges to wellbore engineering technologies including drilling, drilling fluid, cementing, logging, and completion testing. Therefore, it is necessary to delve into core drilling and testing technologies for deep formations.

As oil and gas development gets more difficult, the market competition in engineering technology services tends to be fiercer. CNPC mud logging business is facing double challenges from technology and market. We analyzed both external and internal environment for CNPC logging business development, made clear the opportunities and challenges, gained insights into the existing problems, and proposed countermeasures from the aspects of management system, service mode, profitability, techniques and equipment, market expansion, and personnel training.

A mature market system for the petroleum sector is badly needed in China. The system currently in place in the country still has plenty of aspects in which it can be improved, including: an under-developed factor market, singular forms of product markets, and inadequate marketization of the management system and operational mechanism. How to tackle the three problems is the most urgent task that market construction for the petroleum sector in the country faces right now. This article proposes reform of the current system of awarding mining rights and calls for block auctions and mining right transfers. It also suggests a relaxing of access into petroleum exploration and development, enhancing the petroleum financial derivatives market, improving petroleum investment and financing systems, establishing relatively independent service companies, strengthening the opening-up of the service sector toward foreign service companies, perfecting information management systems and providing information consultants, pushing forward the separation of the governmental administration from the enterprises, accelerating a supervision system, and fully utilizing market means, and methods to adjust the petroleum sector in the country.

Since the founding of the People's Republic of China in 1949, China's global energy strategy has experienced three stages:"infancy", "growth" and "maturity". Chinese foreign energy cooperation has also gone through three periods chronologically, which include (1) the period when China got rid of its high dependence on oil imports from the Soviet Union, achieved self-reliance and even became a net exporter; (2) the period when China first focused on "bringing in" and then turned itself into a net importer of crude oil and refined oil; and (3) the period when China "went global" to engage in energy cooperation in diverse areas, gradually shifting into a leading role before launching the Belt and Road Initiative, which marked the full establishment of the Chinese global energy strategy. The objective of the Chinese global energy strategy has gradually changed from merely pursuing "energy strength" to transforming "energy strength" into "energy power"; the mission is mainly to "promote energy cooperation and energy revolution"; to implement this mission, China will provide international public goods to global and regional energy governance through energy diplomacy and services; and the areas covered by the strategy are countries and regions along the "Silk Road Economic Belt".

Commercial shale gas production has been rapidly realized in China following a short learning period. Shale gas production is expected to reach 4.5bcm by the end of 2015, with the construction of a 7.5 bcm production capacity. Over 700 shale gas wells have been drilled in China, mostly by the three state-owned oil companies. The most significant factors that led to the rapid shale gas development in China include the abundant shale gas resources, a relatively complete R&D system, and strong support from various stakeholders (the central and local governments, oil companies, and the general public). China has a long way to go for building a booming shale gas industry, because of many big obstacles in the way of shale gas development, including complex geology, high operation costs, incomplete infrastructure and technology constraints. Looking ahead, however, there are firm grounds for the projection of a bright prospect of China's shale gas industry, as a 20 bcm annual shale gas production is reasonably expected in 2020.

The Yamal LNG project in the Arctic area of Russia (Yamal LNG) involves many aspects including management of the project's finances, construction of LNG plants and special ships, exploration and development, liquefaction, storage, transportation, and distribution of natural gas. The project is very demanding in terms of quality, standards, and technologies required. China was chosen to carry out modular fabrication for the projects. Six Chinese offshore engineering companies were awarded with contracts to manufacture modules that weigh more than 400,000 tons. Other Chinese companies were also enlisted to provide manufacturing, production, and processing assistance along with material and equipment supplies for the project. Their involvement in the project showed to the world not just their comprehensive strength in both LNG technologies and equipment fabrication but also their potential to become a world class competitor in the petroleum engineering market, as demonstrated by their strong capacity, attractive cost, and short delivery period for module fabrication during their participation in the Yamal LNG project.

Ultra-deep formations in China contain rich hydrocarbon resources. In recent years, the number of ultradeep wells has been continuously increasing. However, efforts to facilitate the drilling and exploration of these ultra-deep reservoirs are facing many challenges, such as complicated formation pressures, complicated formation lithologic features, complicated formation fluids, difficulties in the accurate calculation of formation parameters, difficulties in borehole structure design optimization, instabilities in the performances of drilling fluid and key cementing materials/systems, high temperature-resistance and pressure-resistance requirements for downhole tools and instruments, complicated engineering problems, and slow drilling speeds. Under such circumstances, it is very difficult to ensure the performance of such drilling operations. In order to address these challenges, SINOPEC has developed relevant drilling technologies for ultra-deep wells in complicated geological conditions through intensive research on accurate descriptions of complex geologic characteristics, borehole structure design optimization, fast drilling techniques for deep and hard formations, temperature-resistant highdensity drilling fluid, anti-channeling cementing in high-pressure gas wells, borehole trajectory control in ultra-deep horizontal wells and other key technologies. These technologies can provide sound engineering and technical support for the exploration and development of hydrocarbon resources in ultra-deep formations in China.

Growth rate of oil demand rose again in China in the first half of 2015. Demand for oil products went on differentiating, and the demand growth of most products sped up. Growth rate of oil production rose again, oil imports increased rapidly, and external dependence of crude oil and oil broke through 60% separately. The State adjusted the prices of gasoline and diesel timely and frequently, based on pricing mechanism. Price hike was higher than reduction. Oil market got weak, yet more stable. China increased the pace of reforms in marketization. In the second half, oil demand will increase continuously but with lower growth rate, oil production will rise more slowly, imports of crude oil and oil will keep on rising rapidly, gasoline and kerosene as well as diesel will witness a net import, and the market of gasoline, kerosene and diesel will be more stable.

Petroleum industry plays an important role in both the Chinese and Russian economy.Petroleum cooperation between the two countries continue to accelerate since China opening wider to the outside world, and Chinese oil companies have increased their presence in Russia. Sino–Russia joint-ventures, oil & gas trade has progressed smoothly, there is a better future for cooperation in oil & gas development in Russian Far Eastern region. Chinese and Russian companies will continue to benefit from collaboration in petroleum industry.

In this paper, by in-depth geological research of Kalamkas Oilfield in Central Asia, the geological body has been re-ascertained; combined with fine study of reservoir engineering, based on the understanding of the distribution of remaining oil, horizontal wells have been given full play to stabilizing oil production and controlling water cut, reducing the producing pressure drop, improving well productivity and other advantages, and the development and deployment has been optimized; horizontal wells have been applied to solve problems such as old well casing damages, shutting down wells, low-productivity and lowefficiency wells, and high water cut wells to improve the utilization rate of old wells; through separate layer system improved injection production pattern, adjustment wells have been optimized and deployed, and part measures wells have been preferably selected to tap the residual oil, improve the degree of reserves control, realize the stabilization of oil production and control of water cut in an old oilfield, and further improve the development effects.

China has made great progress during 7 years of shale gas exploration and development. The country managed to finish a preliminary assessment of its resources, start commercial development of two shale gas blocks, and carry out basic technological research for independent development of the gas. To encourage the development of the sector, the country also issued a series of preferential policies. Two rounds of shale gas bidding were held successfully. However, shale gas development in China is still in an early stage. Challenges such as immature geological theories, lack of key technologies and capital,and environmental issues are almost inevitable and need to be tackled before or duringthe exploration and development of shale gas in the country. Overall, shale gas has a bright future in China because of the country's urgent demand for cleaner energy and its current heavy reliance upon imported gas. The article suggests that China will be able to produce 40 bcm by 2020 and that a healthy development of shale gas will be good news for both chemical engineering and peak shaving reserves.

This paper analyzes the origin of the Belt and Road Initiative, the role of China's market-oriented development of natural gas in promoting the Belt and Road Initiative, and the possibilities of natural gas cooperation between China and countries along the Belt and Road. In this paper, the implementation of the natural gas strategy under the Belt and Road Initiative and how it will promote the development of the natural gas industry chain are reviewed. The risks of implementing the Belt and Road Initiative are analyzed, especially in terms of the pricing mechanism, geopolitical risks, and seasonal risks.

This paper expounds on the tendency of energy supervision reform with consideration to the general background of energy reform. It proposes the following aspects. First, the focus of energy supervision should shift to in-process and post supervision after cancellation or decentralization of energy project approval, Hence, the supervision over construction and completion acceptance is reinforced. Second, with the progression of marketoriented reforms in the electricity and petroleum sectors, relevant energy authorities should strengthen supervision on key aspects in the electricity and petroleum sectors, particularly by way of specific supervision and problem supervision, in order to keep the market fair, open and transparent. Third, innovative supervision modes should be adopted to improve supervision performance, so as to realize effective supervision and finally achieve standardized and normalized energy supervision. These proposals represent both the challenges and tasks that the supervision authorities face but also highlight important chances to realize the energy supervision revolution. Energy enterprises should continuously update themselves on the reforms and actions of energy supervision in order to meet the compliance requirements of construction and operation.