By the large scale production oil drag, in 2016 the total output of domestic crude oil will decline significantly. According to preliminary statistics information, 2016 domestic crude oil production fell to 2 tonnes or.

In the industry view, a major cause of China crude oil production decline is high cost. According to the agency released data show that China crude oil production cost roughly 45-50 dollars / barrel, higher than the global average production cost. In this case, crude oil imports relatively more economic benefits.

From this perspective, even if OPEC policy support, the international oil firm above $50 to meet the cost of domestic crude oil production, but still not enough to stimulate domestic oil production again.” Information Analyst Gao Jian Zhengbao told reporters, on the one hand, the conventional wells shut down after the restart there is technical difficulty; on the other hand, the four major domestic oil enterprises to cope with the price of winter, has been drastically reduced upstream investment, even from the organizational structure and personnel changes to make adjustments, such as employee diversion or early retirement, oil unit independent contract operation.