On September 2nd, a reporter from the media learned from the Public Affairs Department of Shell (China) Co., Ltd. that Jilin Guangzheng Mining Co., Ltd. and Shell have recently signed a cooperation agreement in Changchun, aiming to jointly explore and develop oil shale resources in Jilin Province. This partnership marks a significant step forward in the utilization of this unconventional energy source.
Under the terms of the agreement, both companies will establish a joint venture named Jilin Shell Oil Shale Development Co., Ltd. In this new entity, Shell will hold 61% of the shares, while Jilin Guangzheng will own 39%. The company's primary focus will be on assessing the commercial viability of oil shale reserves in Jilin, followed by the application of Shell’s patented underground conversion technology for industrial demonstration. The ultimate goal is to produce clean, high-quality transportation fuels and other energy products from oil shale.
According to optimistic projections from local authorities, based on current international oil prices, the annual value of shale oil production in Jilin could reach 9.6 billion yuan. If this crude oil is further refined into gasoline, the total annual output value could exceed 20 billion yuan, highlighting the economic potential of this project.
Oil shale is considered a crucial alternative to traditional oil and gas sources. It is a type of sedimentary rock rich in organic matter and is classified as a fossil fuel. Jilin Province is home to vast oil shale reserves, with estimated resources totaling 254.29 billion tons and proven reserves of 17.426 billion tons—accounting for about 54% of the country’s total, making it the largest reserve in China. Based on the average oil content, these proven reserves could yield approximately 1 billion tons of shale oil, sufficient to last for over 100 years.
Oil shale forms through the accumulation and burial of ancient plant and animal remains, similar to the process that creates conventional oil. Although it has a high ash content, it contains hydrocarbons that can be extracted and converted into usable energy. This resource is commonly found in sedimentary basins around the world.
Notably, Shell is currently the only company with advanced technology for underground pyrolysis and heating of oil shale, having successfully implemented this method in the U.S. and Canada. Jilin Guangzheng Mining Co., Ltd., a state-owned enterprise with a registered capital of 2.1 billion yuan, expressed strong confidence in the project. The company’s representative stated that they recognize the potential of oil shale to support China’s growing energy demands and are excited to collaborate with Shell to unlock this resource. They believe in the reliability of Shell’s technology and hope the project will move quickly toward commercial production.
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