The Government has actively introduced oil and gas policies to promote the sustainable and healthy development of the industry in 2017. The purposes of such policies are:to accelerate the reform of mineral resource royalties and advance the competitive transfer of mining rights; to promote the reform of the natural gas price, introduce cost supervision on long-distance natural gas pipeline enterprises in the area of gas pipeline transportation, and strengthen the regulation of the distribution price; to liberalize the import of crude oil in an orderly manner, increase the allowable volume of non-state trading crude oil imports, strengthen the supervision and periodically pause the approval of the right to use imported crude oil; and to enhance environmental protection.

China's oil import dependence had risen to 72% in 2017, while its net imports of various oil products, including crude oil, refined oil, liquefied petroleum gas (LPG) and other products, had climbed to 418.8 million tons, an increase by 10.7% over 2016. China's crude oil import reached 420 million tons, surpassed the United States for the first time, and China had become the biggest crude oil importing country in the world. Net export of the refined oil, mainly the diesel, continued to increase to 22.7 million tons, as driven by the oversupply situation of the domestic market. Last year, China's LPG import was 18.45 million tons, but its growth was diminishing. Oil price would continue to rise in 2018, while the domestic demand of refined oil would be maintained at a lower rate of growth. However, driving by new refining capacities to be brought online, it is estimated that the crude oil import would still be increased remarkably. LPG import would reach a new high due to the growth potential and strong demand for feedstocks in the petrochemical product market.

Deep shale gas reservoirs being developed by SINOPEC are characterized by significant buried depths, high rock strengths, high temperatures and pressures, multiple layers, low ROPs, prolonged drilling time and prohibitoryhigh costs. All of these factors may negatively affect the economic and effective development of shale gas. Under such circumstances, existing drilling techniques for deep shale gas around the world have been reviewed to highlight technical challenges in deep shale gas drilling in China. With consideration to the previous drilling operations of SINOPEC for deep shale gas, technical solutions for deep shale gas drilling have been proposed with regard to the optimization of casing programs, enhanced drilling, trajectory control, high-density oil-based drilling fluid, cementation for deep shale gas development and other aspects. Some of these research findings have been deployed with great successes in Pingqiao, Jiangdong Block in the 2nd Phase of Fuling Project, Dingshan Block and other blocks with deep shale gas development. Among them, Well JY-74-2HF has had a drilling time of only 54.25d, whereas Well JY-187-2HF has a TVD up to 4024.14m. Relevant research results may provide valuable guidance and references for the optimization of drilling programs andthe enhancement ofdrilling efficiency for deep shale gas development.

Through analysis of the current situation and newly-increased production capacity of the oil refining industry of China, this Paper discusses both the continuous expansion trend and the serious excess of production capacity of the oil refining industry of China. Due to the entry of the Chinese economy into the new normal, the accelerated substitution of old energy by new energy and rigid restrictions composed of low carbon and environmental protection requirements, the oil demand of China will continue to increase overall, but the growth will obviously slow down. At the same time, the newly-increased production capacity in Shandong and coastal region will continuously expand, the supply and demand contradiction will intensify, and the structural excess production capacity of the oil refining industry of China will be prominent. It is suggested that the government should attach great importance to the production capacity of the oil refining industry at the macro level, and deeply carry forward the supply side structural reform, and that enterprises should speed up technical innovation, enhance regional and layout optimization, adapt to market changes and adjust product structure, control oil refining but increase chemical engineering, improve product quality and production efficiency, and constantly promote the international competitiveness of the Chinese petrochemical industry.

Firstly, the construction background and basic connotations of CNOOC's Green Supply Chain was presented in this paper. Then, a detailed introduction to CNOOC's good practices for building green oil and gas fields, green power plants, green refineries and green chemical plants was given with respect to the establishment of a green production construction and assessment system as well as green exploration, green manufacturing, green products, green sales, green recovery and other aspects. Finally, the effects of the Green Supply Chain established by CNOOC were summarized.