Petroleum and petrochemical industry boosts economic development in Xinjiang
Since the reform and opening-up policy, Xinjiang's petroleum and chemical industry has developed three major oil and gas production bases in Junggar, Tarim, and Tuha, leveraging abundant resources to establish large-scale refining centers such as Karamay and Dushanzi. This has attracted numerous well-known domestic enterprises to set up deep-processing facilities, propelling the industry into a new era of growth.
Initially, the processing capacity of the Karamay Oilfield in the Junggar Basin was only 100,000 tons. Over the past 30 years, the field has experienced remarkable development. By 2002, crude oil production surpassed 10 million tons, becoming the first million-ton oil field in western China. The processing capacity now reaches 5 million tons annually.
Tang Jian, Secretary of the Karamay Municipal Party Committee and Party Secretary of Xinjiang Oilfield Company, remarked, “In the early days, crude oil production was low. For example, in 1981, it was only 3.84 million tons. However, by this year, Karamay’s crude oil output reached 12.32 million tons—showing 28 years of steady growth.â€
Compared to 1978, Xinjiang Oilfield Company's crude oil output increased by 2.45 times, while natural gas output surged by 10.57 times. Last year, processed crude oil reached 8.84 million tons, a 5.28-fold increase.
Today, Xinjiang Oilfield produces over 300 types of petroleum and petrochemical products. Karamay Petrochemical Company, as the largest domestic naphthenic lubricant base, supplies key products like EHV transformer oil, DC converter oil, bright oil, and refrigeration oil, filling market gaps. Its lubricants, rubber oil, and refrigeration oil rank among the best in the country.
Liu Xinjun, deputy director of the third joint workshop at Karamay Petrochemical Company, said, “In December 2000, we launched a high-pressure hydrogenation unit with a design capacity of 300,000 tons. In September 2007, two more units were added. Now, our company is the largest domestic lubricant production base, with an annual processing capacity of 600,000 tons.â€
Karamay has now built a complete oil industry system covering exploration, development, engineering services, refining, and downstream petrochemicals. Cumulative crude oil production stands at 253 million tons, nearly 40 billion cubic meters of natural gas, and 143 million tons of refined crude oil, with 2.355 million tons of ethylene produced.
The later-developed Tarim Oilfield, benefiting from rich resources, has seen rapid growth. By the end of last year, its gas supply to the West-East Gas Pipeline reached 15.5 billion cubic meters, with plans to reach 18 billion cubic meters this year.
Tian Tianxiang, assistant general manager of Tarim Oilfield Company, noted: “From 1989 to next year, the first stage involved discovering the Lunnan and Tazhong oilfields. The second stage, starting in 1998, saw the discovery of the Karat-2 gas field, marking the start of the West-East Gas Transmission Project. By 2004, gas supply to the pipeline was achieved.â€
Currently, the Tarim Oilfield is entering a phase of heavy oil and large-scale development. It has cumulatively produced over 62.69 million tons of crude oil and 38.6 billion cubic meters of natural gas. Crude oil output rose from 39,900 tons in 1989 to 6.43 million tons in 2007, while natural gas output increased from 5.7 billion cubic meters in 2005 to 15.5 billion cubic meters in 2007.
As the main battlefield for oil exploration and the source of the West-East Gas Transmission, Bazhou has become one of the top five industries in the region. With the support of companies like PetroChina, Sinopec, and Meike Chemicals, the oil and gas industry has developed a full industrial chain, making Bazhou a vital part of South Xinjiang's energy base.
Dong Bin, Director of the State Development and Reform Commission of Brazil, stated, “Currently, 50% of our state's total production value and 30% of local tax revenue come from the petroleum and chemical industry. The strong development of oil has also driven progress in agriculture, forestry, fisheries, animal husbandry, machinery manufacturing, agricultural product processing, construction materials, and transportation.â€
In 2007, the proportion of the three sectors in Bayern shifted from 39.6:30.7:29.7 in 1989 to 14.5:68:17.5, showing how oil and gas exploration has boosted the overall economic and social development.
In 2007, Xinjiang's crude oil output reached 26.04 million tons, 6.4 times that of 1978; natural gas output was 21 billion cubic meters, 82.7 times higher than in 1978. The volume of gas transported via the West-East Gas Transmission Project increased from 600 million cubic meters in 2004 to 13.7 billion cubic meters in 2007. That same year, the petrochemical industry contributed nearly 70% of the above-scale industry's added value, with an industrial output value of 204.54 billion yuan—nearly 1,000 times that of 1978.
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