China's domestic oil production reached a record high last year, with crude output totaling 216 million tons, according to data released by the National Energy Administration (NEA) on July 22, 2026. Natural gas production also rose substantially, pushing the country's combined oil and gas output in terms of oil equivalent to 420 million tons — itself a new record. Natural gas production alone increased by 10 billion cubic meters year-on-year, the NEA reported.
Notably, the annual growth rate of oil and gas output remained unchanged for the ninth consecutive year, underscoring the consistency of China's upstream expansion strategy. China's oil and gas companies also made significant strides in reserve additions. New recoverable oil and gas volumes reached 1.32 billion tons of oil equivalent, representing a 5.6% increase on the prior year, according to the NEA.
Of that total, newly discovered conventional oil and gas accounted for 1.29 billion tons, while unconventional resources contributed 30 million tons. The record domestic output comes as Beijing intensifies efforts to reduce its dependence on imported energy. These efforts have been supported by the ongoing conflict between the United States and Iran, which has paradoxically benefited China's energy security position.
Over the past two years, Chinese entities have aggressively filled strategic storage facilities with discounted Russian and Iranian crude, accumulating an estimated supply cushion of approximately 1 billion barrels. This buffer allowed China to draw down inventories when the war triggered a surge in international oil prices, partially insulating the country from the full impact of global market disruptions. The combination of higher domestic production and strategic reserve drawdowns has contributed to a sharp decline in Chinese crude oil imports.
In May, imports fell to the lowest level since 2017, averaging 7.8 million barrels per day, according to the report. Tracking firm Kpler projected an even steeper decline in June, with imports potentially reaching their weakest level since 2016, at around 6.4 million barrels per day. This reduction in Chinese import demand has helped cushion the blow to the global economy from Middle East supply disruptions.
However, analysts have cautioned that this relief is unlikely to be permanent. China's underlying demand for crude oil continues to grow faster than domestic production can accommodate, meaning that a return to higher import volumes is widely considered inevitable. Despite the record production figures, China remains far from meaningful self-sufficiency in energy commodities.
The country's domestic output, while expanding steadily, continues to trail overall consumption by a wide margin, leaving Beijing structurally reliant on international markets for the foreseeable future. Source: Irina Slav for OilPrice.com, July 22, 2026, citing data from China's National Energy Administration (NEA) and Kpler.
Source: oilprice.com