China’s leading energy enterprises are accelerating the integration of artificial intelligence into every stage of their operations, effectively turning technological innovation into a cornerstone of the country’s energy resilience.
From exploration and development to refining and maintenance, domestic oil and gas companies are making a significant leap in the industry’s digital transformation, enhancing operational efficiency and bolstering national energy security.
At Changqing Oilfield, China’s largest oil-and-gas field, an AI “digital brain” is revolutionizing the traditional landscape of exploration.
By shortening the exploration cycle by approximately 30 percent and boosting per-well output by more than 10 percent, AI now functions like a high-precision navigation system, guiding drill bits to the most productive oil pockets with unprecedented accuracy.
This breakthrough at Changqing Oilfield, operated by China National Petroleum Corp (CNPC), is not an isolated success but a centerpiece of a broader digital transformation sweeping through China’s energy sector.
The company is also building a top-tier AI large model with various application scenarios for the energy and chemical industry. Together with China Mobile, Chinese tech titan Huawei, and intelligent speech giant iFlytek, it released the results of its 70 billion parameter Kunlun Large Model project last year, a significant step for the company in the field of AI.
The companies will continue to give full play to their respective advantages, complementing each other’s prowess and focusing on the characteristics of China’s petroleum industry to find the entry and breakthrough points for the development of AI, it said.
As geopolitical volatility in the Middle East roils international markets, China’s “Big Three” energy giants are rapidly embedding AI into their core operations to build “internal certainty” against external shocks.
Expanding this digital frontier into the deep sea, China National Offshore Oil Corp (CNOOC) has successfully integrated AI to manage the extreme complexities of offshore production.
By deploying predictive maintenance systems across its maritime platforms, including Bohai Oilfield, CNOOC has reduced the failure rate of critical equipment by approximately 20 percent.
These AI algorithms analyze real-time sensor data from underwater pumps and platform turbines to preemptively identify mechanical fatigue before it leads to costly downtime or environmental risks.
According to research by market analysis firm Mordor Intelligence, the global AI market in the oil and gas industry is expected to reach $5.7 billion by 2029, from $3.14 billion in 2024, a compound annual growth rate (CAGR) of 12.61 percent during the forecast period.
On the other hand, a recent survey by global consultancy EY revealed that 92 percent of oil and gas companies worldwide have identified the integration of AI as a top investment priority for the next two years.
The deployment of AI across key operational scenarios — ranging from reservoir simulation and automated drilling to predictive maintenance, geological mapping and safety monitoring — is driving significant gains in efficiency while mitigating safety risks and optimizing decision-making frameworks, it said.
As China enters the first year of the 15th Five-Year Plan (2026-30) period, the synergy between traditional energy and cutting-edge technology is expected to deepen.
Industry experts have pledged to continue supporting the deployment of “industrial brains” and digital twins in the energy sector, ensuring that the country’s “smart energy” transition remains a global benchmark for efficiency.
Zhang He, chairman of Daqing Drilling Engineering Co Ltd, said that the engineering technology industry is steadily evolving toward advanced intelligence.
“AI algorithms will optimize production parameters in real-time, while digital technologies will decode complex underground conditions,” Zhang said.
He emphasized that Daqing Drilling will anchor itself in high-level scientific and technological self-reliance.
By prioritizing tech-led growth and building a “digital-intelligent Daqing drilling,” the company aims to leverage “hard-core” technology to fulfill its patriotic mission of “dedicating oil to the motherland”, he said.
China Daily
