On July 1st, the share prices of the "Three Barrels of Oil" collectively rose. By the midday closing, China National Offshore Oil Corporation (CNOOC, 600938.SH) led the increase with a 3.7% rise, trading at 34.22 yuan per share; PetroChina (601857.SH) and Sinopec (600028.SH) saw increases of 1.74% and 1.42% respectively, trading at 10.5 yuan per share and 6.41 yuan per share.

In terms of news, the "Three Barrels of Oil" have recently accelerated their efforts to increase reserves and production, which has driven the continuous increase in domestic oil and gas production.

First Financial Daily reporters learned from CNOOC that the company announced the successful production start-up of its Wushi 23-5 oilfield cluster development project (hereinafter referred to as "Wushi 23-5 oilfield cluster"). For the first time, it has brought oil and gas from two kilometers beneath the seabed to the Leizhou Peninsula in Guangdong. The Wushi 23-5 oilfield cluster is located in the Beibu Gulf area with an average water depth of about 28 meters. The plan is to develop 43 production wells, including 28 oil production wells and 15 water injection wells. CNOOC estimates that the oilfield will achieve a peak production of about 18,100 barrels of oil equivalent per day in 2026, with the oil being light crude.

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In addition, in the field of natural gas, CNOOC also announced the day before that the six 270,000 cubic meter liquefied natural gas (LNG) storage tanks of the company's Yancheng "Green Energy Port" project in Jiangsu Yancheng have been fully constructed, marking the completion of the largest LNG reserve base in China. The storage tanks are the core equipment of the LNG receiving station. Li Feng, Deputy General Manager of CNOOC Gas & Power Group, introduced that the six 270,000 cubic meter storage tanks are the first of their kind to be constructed globally, capable of storing 169 million cubic meters of natural gas. On the same day, the "Green Energy Ying" ship, carrying nearly 60,000 tons of imported LNG, made its first unloading at the Yancheng "Green Energy Port". It is said that the gas volume of the ship can meet the monthly gas needs of 7 million households.

First Financial Daily reporters also noted that on July 1st, Sinopec's Zhongyuan Oilfield also released news that the company's Ma 3001 inclined well, deployed in the Dongpu Depression, achieved a high-yield industrial oil and gas flow after fracturing, with a daily oil production of 62.8 cubic meters and a daily gas production of 43,200 cubic meters, with an oil and gas equivalent of 106 cubic meters. This marks a significant breakthrough in the exploration of oil and gas in the old Dongpu area of the oilfield, which is expected to form a ten-million-tonne oil and gas reserve position and also has reference and guiding significance for the exploration of oil and gas resources in the same type of depression zones in subsequent areas.

On the PetroChina side, its Southwest Oil and Gas Field Company (referred to as "Southwest Oil and Gas Field") also disclosed on June 28 that as of that date, PetroChina's Chuannan shale gas field had produced a cumulative 80.19 billion cubic meters of gas, becoming the first shale gas field in China to exceed 80 billion cubic meters in cumulative production. The person in charge of the Southwest Oil and Gas Field introduced that 80 billion cubic meters of natural gas can supply 2.1 billion households and 650 million people with a daily gas usage of 1 cubic meter for a year. It is predicted that by the end of 2025, the annual production of the Chuannan shale gas field will exceed 18 billion cubic meters, accounting for about 8% of the national natural gas production.

"Our country's energy resource endowment is 'rich in coal, poor in oil, and scarce in gas', and the dependence on foreign oil and natural gas remains at a high level of more than 70% and 40% respectively. The security of oil and gas supply is still an urgent task to ensure the country's energy security." On July 1st, Wang Dongjin, Secretary of the Party Group and Chairman of CNOOC Group, pointed out the above issues in his signed article published that day, and stated that as a state-owned energy company whose main business is marine oil and gas exploration and development, CNOOC should vigorously implement the reserve and production increase project and be the "main force" to ensure the country's energy security.

In response to the structural prominent issues of China's energy security, the National Development and Reform Commission and other departments proposed in the "14th Five-Year Plan for Modern Energy System" that by 2025, the domestic energy annual comprehensive production capacity will reach more than 4.6 billion tons of standard coal, the annual oil production will return and stabilize at the level of 200 million tons, and the annual natural gas production will reach more than 230 billion cubic meters. Under this background, the National Energy Administration proposed in May 2019 that "oil companies should implement the main responsibility of increasing reserves and production, and complete the seven-year action plan from 2019 to 2025", which is known in the industry as the "seven-year action plan for oil and gas reserve and production increase".