THE MINERAL INDUSTRY OF CHINA 
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lizer plants and petrochemical units. Technology is stressed, as witnessed
by the 450member Oil Extraction Research Institute attached to the oilfield.
Reportedly, reservoir pressures have been steady, most wells maintain natural
flows (95% of the original wells are still utilized), production levels have
not declined even for old wells, and the early water injection technique
is an unqualified success. 
 Shengli, comprised of more than 20 smaller oilfields in the Yellow River
Delta, covers 10,000 square kilometers. It was far more faulting than Taching,
although not as much as Takang. The many faults have cut up the reservoirs
and caused mixing of water, oil, and gas. Nonetheless, reserve and operational
problems have been overcome, and the hope is to double production from the
present roughly 25-million-ton-peryear level in 5 years. As of early 1979,
Shengli had about 100,000 workers, up to 200 operating rigs, and some 6,000
individual producing wells. Three medium to poorly consolidated sands, lying
mostly between 1,100 to 1,700 meters but reaching twice that depth near fault
blocks, provide most of the production.62 The deepest well was about 5,000
meters. Shengli has a refining capacity of about 6 million tons per year,
two fertilizer plants, downstream plants, a petroleum institute, and many
kinds of basic industries nearby. A new oil industry complex was being built
80 kilometers to the west. A major network of pipelines passing through Tzupo
coal mines and the port of Qingdao has now been extended all the way to Nanking
(Nanjing), 1,000 kilometers away. Shengli oil already goes to Japan, the
Philippines, the Maoming refinery north of Canton, and many other markets.

 The true potential of the Takang (Dagang) oilfield, located nearshore Pohai
Bay about 60 kilometers southeast of Tianjin, has not been further clarified.
It has been compared with Taching and Shengli, but production definitely
is much lower, and structures, much more faulted and folded. Takang's past
peak output may have been 10 million tons per year, and some believe it is
much lower. However, Takang apparently has good reserves of gas, which have
already been piped to Peking and Tianjin. Recent visitors say that Takang
has about 60 drilling rigs and 80 production stations working in the "salt
flat," and several offshore rigs in Pohai Bay. The Panshan field to
the northeast
and near the south of the Liao River was said to be not only rich in oil
but also in natural gas, sea salt, and 
boron and magnesium salts.63 The Liao River area has a large fertilizer plant
capable of producing 300,000 tons per year of ammonia and 480,000 tons of
urea. A new plastics plant is being built in nearby Yingkou. Panshan's crude
oil output may have been somewhat stabilized at the 6- to 8-million-ton-per-year
level. 
 In 3 years, since drilling began in 1975, the Huabei oilfield centered in
Jenchiu County south of Peking, has already been developed into an oilfield
capable of supporting the needs of the Peking Tungfanghung refinery, which
is rated at close to 7 million tons per year. The Huabei field has more than
10 high-yield wells producing in excess of 1,000 tons per day each, and this
is just the beginning. Specifically, the No. 11 well reportedly produced
2.6 million tons of crude during the 2 1/2 years of its existence.~ The No.
4 well, located in the Guchienshan area, was said to be of great geological
significanc, because oil occurs in carbonaceous formations of the Sinian
in the Paleozoic era, rather than in later rocks such as the Mesozoic and
Cenozoic. Such formations are found widely elsewhere, including Jiangsu and
Zhejiang Provinces and many other areas along the Yangtze River. Indeed,
the brand new Subei field in southern Shandong and northern Jiangsu may be
of this nature. Huabei employs early water injection and acidification of
oil-bearing formations. Two large pipelines, totaling 200 kilometers, and
two large pumping stations were quickly installed. Overall output has risen
sharply, with targets overfulfilled. Also, new reservoirs have been discovered
around the perimeters. The Luning Pipeline, connecting Shengli and Huapei
oilfields with Nanking and elsewhere and to the south, was recently completed.
Technically, the oil is more like that of Taching than that of Shengli but
with higher sulfur, water, and nitrogen contents, according to the Japanese.

 Xinjiang's Karamai oilfield in western Dzungarian Basin may be producing
about 7 million tons per year crude. Its downstream facilities have been
streamlined somewhat, and a new refinery has been built at Urumchi. A railroad
that would eventually link southwest Sinkiang via Urumchi to China's east
coast was started. Recent discovery of a large oilfield in the western edge
of the Tarim Basin (Takla Makan), between Kashgar and Aksu, led to the decision
to build this railroad through the desert. High-grade coals have also been
found in large quantities, along with a "sea