Building new-quality productivity in petroleum engineering to boost high-quality development of the oil and gas industry.

Ensuring oil and gas resources is one of the key issues for China's energy security and also a crucial goal for the development of petroleum engineering. China's oil and gas exploration and development have entered... “ Deep water, deep layer ” In this stage, the newly developed oil and gas resources are predominantly low-permeability and low-grade, making it increasingly difficult to maintain and increase production. Natural gas development is currently in a phase of major exploration discoveries and rapid production growth; in the future, the share of unconventional natural gas will reach... 50% At the same time, it is becoming increasingly difficult to maintain and increase natural gas production. Against this backdrop, promoting the exploration and development of oil and gas reserves to ensure energy supply security places even higher demands on innovation in petroleum engineering technologies.

Currently, the development of domestic petroleum engineering technology still faces numerous challenges and difficulties. The leading and safeguarding role of technological innovation in promoting high-quality development of oil and gas has yet to be fully realized. There is a pressing need to accelerate the cultivation and development of new forms of productive forces, vigorously advance scientific and technological progress in petroleum engineering, reduce costs, improve quality, and enhance efficiency in oil and gas production, thereby supporting the industry’s high-quality development.

New-Generation Productivity: The Path to a High-Tech, High-Efficiency, High-Quality Future

The essence of new-quality productivity in the petroleum engineering field lies in leveraging technological breakthroughs—such as artificial intelligence and big data—and reorganizing production factors to drive improvements in construction efficiency, cost optimization, and a low-carbon transformation of the industry.

New-quality productive forces are driven primarily by innovation and are characterized by high technology, high efficiency, and high quality. They represent an advanced form of productive forces that align with the new development philosophy. These forces emerge from revolutionary breakthroughs in technology, innovative reallocation of production factors, and deep-seated transformation and upgrading of industries. At their core lies the leap forward in the optimized combination of workers, means of labor, and objects of labor.

In the field of petroleum engineering, high technology is reflected in the innovation and application of key petroleum engineering technologies. By strengthening research on these critical technologies and leveraging the empowerment and cross-disciplinary integration of digital and intelligent technologies—such as artificial intelligence, big data, and cloud computing—we can achieve a revolutionary transformation in production methods, enhance exploration and development efficiency and quality, and reduce oil and gas production costs. High efficiency is embodied in the improved construction efficiency and resource utilization levels of petroleum engineering projects. Through optimizing construction processes, enhancing the utilization rates of petroleum engineering equipment, tools, and instruments, and upgrading the skill levels of personnel, we can boost construction efficiency and cut down on construction costs. High quality is demonstrated in service delivery, where the application of advanced technological equipment, innovative management models, and optimized engineering design and construction processes continuously elevate the quality of services and engineering work—including seismic data acquisition, processing, and interpretation, well completion and drilling, and petroleum engineering construction—to meet the demands of oil and gas exploration and development.

Technological breakthroughs represent one of the key factors driving the development of new-quality productive forces. Breakthroughs in petroleum engineering technology—especially disruptive technological breakthroughs—can bring about revolutionary changes in the methods of petroleum engineering construction and service delivery, as well as in equipment, tools, and organizational approaches, thereby enhancing construction efficiency, optimizing resource allocation, and expanding growth opportunities. In terms of innovative allocation of production factors, the creative reconfiguration of labor, capital, land, knowledge, technology, data, and other production factors means that petroleum engineering production activities will be able to more efficiently integrate and utilize various resource elements, improve resource utilization efficiency, reduce construction and service costs, and achieve higher levels and improved quality in construction operations. Regarding the deep transformation and upgrading of the industry, as an important supporting service sector for the traditional oil and gas industry, the transformation and upgrading of petroleum engineering will continue to optimize alongside adjustments in the structure of the oil and gas industry. Exploration and development of oil, gas, and new energy sources provide application scenarios for the restructuring of petroleum engineering business. Moreover, the low-carbon and intelligent development of the entire energy industry will also bring about revolutionary impacts, leading to a comprehensive upgrade of petroleum engineering’s organizational approaches, product and service structures, and market positioning, thus realizing high-quality industrial development and enhanced new-quality productive forces.

Moving Toward a New Quality of Productivity: Practical Pathways for Innovation-Driven Development and Transformation & Upgrading

With technological breakthroughs (deep-level) - The development of ultra-deep oil and gas resources, green efficiency enhancement in mature oilfields, and digital and intelligent empowerment (integration of data platforms, intelligent drilling) are driving the upgrading of traditional industries. At the same time, we are exploring pathways for the integration of petroleum engineering and new energy engineering, achieving cost reduction, efficiency improvement, and low-carbon transformation through optimization across the entire industrial chain.

● Innovation drives the transformation and upgrading of traditional sectors.

Integrated development of exploration and development engineering. First, we need to establish an integrated collaborative platform to eliminate... “ Data silos ” Promote integrated data fusion. On the basis of integrated management mechanisms and technology convergence, establish an interactive, integrated collaborative decision-support platform that is systematic, integrated, standardized, and visualized across different specialized systems. Second, we must leverage petroleum engineering. “ Main force ” The role is to establish an operational mechanism that integrates exploration and development with petroleum engineering, enabling coordinated problem-solving and cross-sector promotion, and fostering deep integration and synergy among seismic exploration and geology, geology and drilling, and geology and well completion.

Deep and ultra-deep oil and gas exploration. Focus on tackling key technological challenges including optimization of ultra-deep wellbore structures, leak-proof drilling fluid technologies, and safe drilling techniques for fractured reservoirs. Develop high-temperature and high-pressure downhole instruments, new high-temperature-resistant oilfield chemical materials and working fluid systems, as well as low-density, high-strength metallic materials (such as titanium alloys). Continuously shorten engineering operation times, reduce construction costs, and enhance safety and environmental protection standards.

Deepwater oil and gas. We will focus on deploying key technologies including marine broadband seismic exploration, marine electromagnetic exploration, clustered well drilling and completion technologies, advanced overflow monitoring and identification technologies, offshore rapid rescue and response technologies, and intelligent completion technologies. We will also develop deepwater intelligent drilling platforms, new-generation smart floating production platforms, highly efficient and intelligent subsea production control systems, and underwater robots. Furthermore, we will research and develop new subsea products, actively promote the transformation toward intelligence, digitalization, and electrification, accelerate the localization of critical technologies and equipment, and support the high-quality development of deepwater oil and gas resources.

Unconventional oil and gas. Further promote integrated geological-engineering design and intensive development. “ Well Factory ” Research on operational modes, continuously improving the extension limits and safety control technology for large-displacement horizontal wells, and promoting... “ A drilling trip ” We will iteratively upgrade key technologies, accelerating the development of critical technologies for drilling ultra-long horizontal-section horizontal wells, shale formation anti-collapse drilling fluid technologies, and high-performance water-based drilling fluid systems. We will carefully select high-performance materials with excellent inhibition, lubrication, and sealing properties, enhance the performance of tough cement slurries, and establish an integrated geological fracturing technology system. This will help improve safety and environmental protection standards, boost operational efficiency, and enhance development benefits. We will also carry out differentiated fracturing optimization designs for shale oil, tackle challenges in intelligent and precision fracturing technologies as well as low-water fracturing technologies, and conduct research on downhole electric heating extraction technologies for unconventional oil resources such as heavy oil, oil sands, shale oil, and oil shale, thereby elevating the level of efficient and green development of these unconventional resources.

Mature oil and gas fields. Conduct research on technologies for significantly enhancing recovery rates, particularly technologies for improving recovery in high-water-content sandstone reservoirs, technologies for enhancing recovery in complex gas fields, and technologies for low-permeability reservoirs. - Technologies for enhanced oil recovery in tight oil reservoirs, heavy oil reservoirs, and complex carbonate rock reservoirs—among others—are designed to support the long-term stable production of mature, conventional oil and gas fields and address low-permeability formations. - Rapid production increase in tight oil reservoirs and heavy oil reservoirs, stable production increase in conventional and unconventional natural gas reservoirs, and deep-layer... - Enhance production and stabilize output in ultra-deep oil reservoirs. Strengthen pressure-driven recovery in low-permeability oil reservoirs. - Waterflooding synergistic development, gas in fractured-vuggy reservoirs - Water - Well-network synergy to enhance recovery rate and reservoir management in mature oilfields - Shaft well - The development of technologies such as integrated surface mining and combined drainage and gas production from shale gas wells is helping to sustain stable production in aging oil and gas fields.

● Innovation drives the development of new fields.

Promote the integrated innovation of petroleum engineering and new energy engineering. In the offshore wind power sector, deeply explore and apply the integration of advanced petroleum engineering technologies with offshore wind power construction; strengthen research on the adaptability of high-resolution geophysical seismic acquisition techniques to offshore wind power development; and enhance the integrated innovation of traditional marine engineering technologies with offshore wind power construction, floating platform operations and safety monitoring, anchoring systems, and dynamic cable laying and management. In the hydrogen energy sector, advance the integration of drilling and completion technologies with wellbore hydrogen storage, leveraging geophysical technologies to drive breakthroughs in long-term hydrogen storage and monitoring methods. In the geothermal and enhanced geothermal systems (EGS) sectors, fully integrate and apply petroleum engineering technologies to accelerate technological advancements in geological site selection, high-temperature geothermal drilling and completion, and EGS reservoir stimulation. In the associated resource sector, intensify innovation in process optimization to achieve low-cost extraction of associated resources such as lithium and helium from produced fluids in oil and gas fields.

Lead the low-carbon development of the oil and gas business. On one hand, we must strengthen synergy and integration with new energy sources, build a comprehensive energy supply system, and develop technologies for underground hydrogen storage and energy storage to reduce hydrogen storage costs and enhance storage safety. At the same time, we should intensify research into the exploration and utilization of deep dry hot rocks, continuously advance research on low-cost, high-efficiency technologies for exploiting shallow and mid-depth hydrothermal geothermal resources, and enhance the competitive edge of geothermal energy. On the other hand, we need to make full use of underground reservoir space—for instance, by establishing a low-cost, low-energy-consumption, safe, and reliable carbon capture and utilization technology system—step up innovation in underground energy storage engineering technologies, explore deep-water constant-pressure compressed-air energy storage technologies, and through carbon capture and energy storage, provide more pathway options for emission reduction.

● Strengthen the integration and innovation of empowering technologies.

Digital and intelligent empowerment. First, we will promote the deep integration of the digital economy with the petroleum engineering industry, strengthen top-level design for the digital transformation of petroleum engineering, establish a unified data management platform, refine mechanisms for internal and external data circulation and sharing, actively participate in the formulation of standards for digital technologies in the oil and gas industry, intensify research on digital twin technologies for petroleum engineering, and advance the development of smart supply chains, intelligent workshops, and smart factories, thereby accelerating the pace of intelligent manufacturing. Second, we will enhance the integrated innovation of digital and intelligent technologies in the field of petroleum engineering science and technology, accelerate breakthroughs in areas such as digital twins for petroleum engineering, intelligent drilling rigs, intelligent well construction, smart oil and gas reservoirs, intelligent monitoring and maintenance of production processes, and fully leverage big data from drilling, completion, and production in oil and gas exploration and development to improve data governance capabilities, strengthen collaboration on algorithms and computing power, and promote the building of digital service capabilities. With regard to application scenarios for artificial intelligence technologies in petroleum engineering, we will build a systematic, procedural, and platform-based AI technology development ecosystem, establish an AI application software platform specifically tailored for the petroleum engineering sector, and apply AI technologies to scenarios including seismic data processing and interpretation, wellbore trajectory optimization, risk early warning, drilling rate optimization, completion optimization, numerical simulation of oil and gas reservoirs, and production capacity forecasting.

Low-carbon transition: Before the energy system and its structure undergo a comprehensive transformation and before deep-zero-carbon and negative-carbon technologies are fully developed and widely adopted, we should continue to strengthen the research, development, and application of traditional petroleum engineering carbon-reduction technologies, fully leveraging their foundational role in carbon reduction. We must continuously enhance the technological sophistication of existing petroleum engineering practices, prioritizing the deployment of technologies that accelerate and improve drilling efficiency, optimize well-completion processes, and advance fluid research and development—thereby boosting operational efficiency and achieving energy savings and emission reductions. We should actively promote and apply energy-saving and low-carbon technologies and equipment, rapidly accelerate the electrification of equipment and machinery, and widely adopt technologies for the recycling of drilling fluids and fracturing fluids, thus reducing carbon emissions. At the same time, we should optimize petroleum engineering management models, guided by the principle of... “ Adapt to local conditions and pilot first. ” the principle of accelerating the exploration and implementation of integrated geological engineering, “ Well Factory ” Advanced management systems, such as drilling mode optimization, ensure efficient resource utilization, streamlined construction processes, high-performance equipment operation, and effective information management, thereby enhancing operational efficiency and reducing carbon emissions.

High-Quality Development of Petroleum Engineering: Technological Shortcomings Coexist with Transformation Challenges

High-quality development of the petroleum engineering sector faces challenges such as reliance on imported high-end technologies, slow progress in intelligentization, and insufficient reserves of future technologies. To address these challenges, it is necessary to strengthen research on core technologies, deepen collaborative innovation among industry, academia, and research institutions, break through bottlenecks in deepwater and deep-layer development, accelerate the deployment of low-carbon and intelligent technologies, and reshape industrial competitiveness.

● There is a gap in high-end technology, and the supply of high-quality technology is insufficient.

Currently, in China, the scientific and technological innovation capabilities of certain specialties within the petroleum engineering field remain weak, and the capacity to provide high-quality technologies is constrained. In some critical areas—such as advanced, precision, and cutting-edge equipment, tools, and instruments, as well as deep-sea technology equipment—China’s independent innovation capacity is relatively weak, and its ability to generate original innovations in new technologies and equipment is insufficient. Technical bottlenecks—including challenges in high-build-rate rotary steerable drilling, control of severe well leaks, and the development of ultra-high-temperature and ultra-high-pressure downhole tools, instruments, and working fluids—are hindering the high-quality development of China’s oil and gas exploration and production. Moreover, domestically produced drill bits and speed-up tools perform poorly when applied in deep, difficult-to-drill formations, leaving a significant gap compared to high-level imported drill bits and tools. Additionally, there is a lack of mature, independently developed technologies for real-time remote detection and forward-looking imaging during drilling, as well as for ultra-high-temperature and ultra-high-pressure applications. 260 Celsius, 200 High-end logging technologies and equipment capable of handling pressures exceeding megapascals; critical equipment, key materials, and components for deepwater operations largely rely on imports, and the R&D capability for deepwater floating production platforms remains weak.

● There are gaps in the level of intelligence, and progress in low-carbon technology innovation is slow.

China’s digital and intelligent transformation in the petroleum engineering sector is still in its early stages. In terms of digitalization, there are a number of fundamental challenges, including fragmented data, lack of unified standards, and difficulties in processing and labeling multi-source heterogeneous and unstructured data. Moreover, innovation through digital integration remains relatively slow. As for intelligent drilling, there is still a significant gap compared to the world’s advanced levels; the degree of intelligence in surface operation systems, downhole control tools, and decision-making systems is low, and the integration among various equipment, tools, and systems is insufficient. Core technologies still require breakthroughs through integrated development. Regarding intelligent fracturing, a complete intelligent fracturing technology system has yet to be established, leaving considerable room for improvement before achieving truly intelligent and precise fracturing.

The low-carbon transformation of the petroleum engineering sector is underway, poised to help the oil and gas industry achieve... “ Dual Carbon ” There is still a certain gap to reach our goals, and we currently lack sufficient accumulation of technologies to support oil and gas emission reductions. We need to expand our business scope and step up innovation investments in areas such as new energy, energy storage, and carbon capture and storage, thereby providing more technological solutions for the low-carbon transformation of the oil and gas industry.

● We lack sufficient technological reserves for the future and are inadequately equipped to meet the challenges of future oil and gas exploration and development.

Currently, although China has established a series of key technological systems for deep formations, deepwater exploration, and unconventional resources, there is still a noticeable gap compared to the world’s advanced levels. These systems fall short of adequately meeting China’s needs for efficient exploration and development of complex oil and gas reservoirs—such as deepwater, deep formations, unconventional resources, and low-permeability reservoirs. In particular, there is a significant lack of critical core technologies that are suitable for challenging operating conditions and geological environments, including extremely high temperature and pressure, extremely low temperatures, and harsh terrains. Regarding in-situ conversion of shale oil, super... “ Well Factory ” We still need to continue increasing investment in areas such as intelligent and precision fracturing, polar marine oil-and-gas equipment, subsea intelligent robots, digital twin wellbores, intelligent drilling and completion technologies, smart reservoir management, and green, low-carbon drilling, so as to build up a larger pool of high-level engineering and technical expertise to support high-quality exploration and development of oil and gas resources.

● The institutional mechanisms for scientific and technological innovation still need to be improved, and the building of a strong team of science and technology talent needs to be strengthened.

China's petroleum enterprises have established a relatively well-developed science and technology system and have formed a fairly comprehensive management framework for scientific and technological innovation. However, the overall effectiveness of this system has yet to be fully realized. Research institutes at all levels within these enterprises lack effective collaboration, and redundant research efforts continue to persist. The mechanisms for coordinating the commercialization and application of scientific and technological achievements between research institutes and enterprises remain inadequate, leaving considerable room for improvement in the integrated mechanism linking research, education, industry, and application. Moreover, the organizational models for scientific research are still confined to traditional approaches and fail to meet the demands of rapid R&D. The incentive and constraint mechanisms are also incomplete, making it difficult to effectively stimulate the initiative and creativity of scientific researchers. Structural contradictions between supply and demand in the science and technology talent pool remain prominent. The innovative capabilities of scientific researchers need further enhancement, and there is a notable shortage of high-level leading talents, insufficient succession of backup talent, and significant loss of technical personnel.

Building New-Generation Productive Forces: “ Four chains ” Strategic Support for a Fusion and Innovation Ecosystem

In the field of petroleum engineering, by deeply integrating the innovation chain, industrial chain, capital chain, and talent chain, we can build a collaborative innovation ecosystem that breaks down technological barriers, optimizes resource allocation, and drives technological breakthroughs and industrial upgrades in the oil and gas sector.

● Accelerate the integration of the innovation chain, industrial chain, capital chain, and talent chain in the petroleum engineering sector.

Deploy the innovation chain around the industrial chain. Focusing on the technological challenges in oil and gas exploration and development as well as new energy development, we will strengthen innovation across the entire chain—including basic research, technological breakthroughs, product development, and the commercialization of research results—in the fields of oil and gas and energy engineering technologies. This will help extend, supplement, and reinforce the oil engineering industrial chain, thereby promoting high-quality development of the oil engineering industry.

Arrange industrial chains around technology chains. Explore new models for deep integration among industry, academia, and research, and establish a comprehensive, integrated collaborative mechanism based on value sharing among industry, academia, research, and application. Build a specialized incubator platform in the field of petroleum engineering, enhance the platform’s professional service capabilities, and leverage incubators to accelerate the successful commercialization of scientific and technological achievements.

The funding chain is “ Four chains ” An important guarantee for successful integration is to strengthen technology acquisitions and mergers, thereby enriching the toolbox for technology acquisition. We must continuously expand sources of R&D funding, optimize the structure of R&D funding supply, develop diversified equity financing, and establish a stable financial support system that integrates the innovation chain and the industrial chain.

Focusing on building an innovation chain, we will attract and cultivate strategic scientists, high-level scientific and technological leaders, and innovative teams in the field of petroleum engineering. Focusing on developing industrial chains, we will attract and cultivate outstanding entrepreneurs, exceptional engineers, and high-caliber technical workers. Focusing on perfecting the financial chain, we will attract and cultivate high-level financial professionals.

● Build a high-level innovation consortium for petroleum engineering and promote cross-disciplinary, integrated, and innovative collaboration.

Jointly build national strategic scientific and technological forces and co-create common technology platforms. Promote the establishment of original technology innovation hubs in the field of petroleum engineering, improve the management system for the construction and operation of these hubs, refine policy support measures, and strengthen assessment and evaluation mechanisms. Intensify efforts to tackle key national scientific and technological tasks, jointly organize and lead national-level research projects, continuously increase joint construction efforts on national-level R&D platforms such as key national laboratories and engineering research centers, and further enhance the laboratory director responsibility system and explore substantive operational models. Adhere to both goal-oriented and demand-driven approaches, focus on common technologies in the field of petroleum engineering, leverage key laboratories to coordinate innovative resources within the industry, and establish joint innovation platforms. Strengthen cross-disciplinary and integrated innovation, coordinate internal and external industry resources, and jointly develop new common technology platforms in areas such as intelligent petroleum engineering, big data service support, low-carbon emission reduction, and safety and environmental protection. Establish new common technology research institutes specializing in intelligent technologies, systematically lay out shared foundational technologies for industrial development, build a common technology resource database, implement substantive operations, and establish multi-stakeholder governance mechanisms and market-oriented operational models.

Strengthen cross-disciplinary integration and innovation, and jointly build an open and shared innovation platform. Relying on the Joint Innovation Consortium for Petroleum Engineering Technology, we will establish a cross-disciplinary innovation platform in the form of a virtual network organization, promoting strategic collaborations with relevant domestic and international enterprises, universities, and research institutions, and carrying out extensive cross-disciplinary, cross-specialty, and cross-sectoral innovation activities.

● Deepen the reform of the science and technology system in the petroleum engineering field and accelerate the establishment of new production relations that are suited to the new quality of productive forces.

Establish a system of chief responsibility for major science and technology tasks, improve the science and technology evaluation mechanism, and fully leverage the role of science and technology evaluation in the incentive and constraint mechanisms; refine... “ Announce the list and assign the leader. “” Large-scale army “” Horse racing ” Establish mechanisms to promote integrated innovation—from basic research all the way through to industrial application, fully leveraging... “ The market leads research, research guides production, and production meets demand. ” The roles of the integrated collaborative innovation mechanism, competitive mechanism, and market mechanism for industry-academia-research-application integration.

Define different types of research outcomes based on elements such as basic research, applied research, technological development, and industrialization, thereby establishing a diversified evaluation mechanism that aligns with scientific principles. Strengthen both material and spiritual rewards for individuals and teams that have made significant contributions, and improve the mechanisms that provide long-term, stable support for scientific and technological personnel to focus on their research. Expand medium- and long-term incentive channels and explore introducing stock option plans to further refine the incentive and constraint mechanisms.

● Build a high-level, innovative team in the field of petroleum engineering and lay a solid talent foundation for the development of new-quality productivity.

Focusing on areas such as basic research, critical core technologies, and disruptive technologies, we will attract top-notch talent from all sectors, integrate scientific and technological resources, establish innovation platforms, and build a group of high-level innovation teams. We will conduct team evaluations on an irregular basis, select and promote outstanding demonstration teams, and provide them with priority support in terms of talent recruitment, funding allocation, and project applications, thereby accelerating their growth, generating high-level, high-impact results, and enhancing their influence within the industry.

Implement high-level science and technology talent programs, innovate mechanisms for independent cultivation of high-caliber talents, and establish interdisciplinary and diversified talent development models. Intensify efforts to attract and utilize top-tier scientific and technological talent, and set up talent incentive measures linked to innovation outcomes, as well as dynamic adjustment and exit mechanisms. Improve mechanisms for the selection, development, utilization, and retention of internationally-minded talent, establish diversified talent recruitment models, launch projects to attract leading talents and their teams, and implement flexible recruitment initiatives for core personnel. Develop an internationalized talent evaluation and compensation system, build a one-stop service platform, and provide comprehensive support services. Pay close attention to creating a flexible and open talent environment, fostering a positive atmosphere that recognizes, cherishes, respects, and effectively utilizes talent.