Shandong Longkou Coal Mine Uses New Technology to Produce 200 tons of “Crude Oil” per day

On April 18th, a reporter learned from Shandong Longkou Mining Group that after over 100 days of trial mining, the company has successfully extracted 1,340 tons of oil shale daily from depths of 300 meters underground, equivalent to producing approximately 200 tons of crude oil per day. Experts highlight that this breakthrough not only opens new avenues for China's energy diversification but also holds significant strategic value for ensuring national energy security. The project in the Longkou Mining Area has a total investment of 1.76 billion yuan, with trial mining beginning on December 4 of last year. The current mining technology and safety measures are highly advanced. Daily production now reaches 1,340 tons of oil shale, and annual sales revenue is projected to reach 985.6 million yuan. According to Li Xiujie, deputy chief engineer at Beisou Coal Mine, after 38 years of coal mining, reserves are nearly depleted. However, proven economic reserves of oil shale associated with coal are estimated at around 300 million tons, with thickness ranging from 2.59 to 4.74 meters, averaging 3.72 meters. The oil content is significantly higher than that of oil shale mines in Fushun and Maoming, ranking first nationally in quality and offering great mining potential. Based on a conservative extraction rate, this translates to about 201 tons of crude oil per day. At comparable market prices, this is equivalent to discovering an oil field with reserves exceeding 50 million tons. In addition to oil production, oil shale can also be used directly for power generation and the creation of eco-friendly building materials, helping to reduce environmental pollution. Li Xiujie noted that the cost of converting oil shale to oil at Longkou Group is at least half that of the most advanced coal-to-oil technologies in mainland China. By introducing international refining techniques, the group has already begun extracting oil from oil shale, using refinery coke and selected shale for fuel. They have also built two 200,000-kilowatt oil shale circulating fluidized bed units. After full-scale operations, the project is expected to increase raw coal production by over 650,000 tons, oil shale by 2 million tons, and generate 2.2 billion kWh of electricity annually. Under the national "Eleventh Five-Year Plan," the focus will be on exploring unconventional oil and gas resources like coalbed methane, oil shale, and oil sands, promoting diversification in exploration and development. China is rich in oil shale, with reserves estimated at about 2 trillion tons—equivalent to 80 billion tons of shale oil. This places China fourth globally, behind the United States, Brazil, and Russia.

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