Oil Shale in China - History

History

The extraction of oil shale in China began in 1926 under the Japanese rule. The commercial-scale production of shale oil began in 1930 in Fushun, Manchuria, with the construction of the "Refinery No. 1" operating Fushun-type retorts. After World War II, the shale oil production was ceased, but 100 Fushun-type oil shale retorts and the related shale oil processing units were restored in 1949 after the founding of the People’s Republic of China. In 1950, total 266 retorts were in operation, each with the capacity of 100–200 tonnes shale oil per day.

In 1954, the "Refinery No. 2" began its production and in 1959, the maximum annual shale oil production increased to 780,000 tonnes. The produced shale oil was acid and alkaline washed and hydrotreated for producing light liquid fuels. In 1961, China was producing one third of its total oil production from oil shale. In Maoming, Guangdong Province, a new oil shale retorting plant with 64 retorts was put into operation in 1963.

Since 1965, oil shale usage in Fushun started to decline. With the discovery of Daqing oilfield in 1960s, the shale oil production declined and Sinopec, an operator of shale oil production these times, shut down its oil shale operations in the beginning of 1990s. At the same time, the Fushun Oil Shale Retorting Plant was established as a part of the Fushun Mining Group. It started production in 1992. In 2005, China became the largest shale oil producer in the world. At the same year, China National Oil Shale Association was established in Fushun.