U.S. Department of the Interior

U.S. Geological Survey

Fact Sheet 2012–3018

February 2012

World Petroleum Resources Project

Assessment of Potential Unconventional Carboniferous-Permian 

Gas Resources of the Liaohe Basin Eastern Uplift, Liaoning 

Province, China, 2011

Introduction

The U.S. Geological Survey (USGS), in cooperation with 

the U.S. Department of State, is assessing the potential for 

unconventional oil and gas resources (shale gas, shale oil, tight 

gas, and coalbed gas) in priority geologic provinces worldwide. 

In 2010, the USGS, in cooperation with the Chinese National 

Energy Agency, PetroChina, and PetroChina’s Liaohe Oil Field 

Company, was requested to evaluate and assess the unconventional resource potential of Carboniferous and Permian 

coal-bearing strata within the eastern uplift area of the Liaohe 

Basin, Liaoning Province of the People’s Republic of China 

(figs. 1, 2). The basin is considered the third most important 

hydrocarbon-producing basin in China and contains reserves 

estimated at about 15 billion barrels of oil (Gu and others, 

2002; Hu and others, 2005). Much of the geological information used in this study was obtained through a proprietary data 

agreement with PetroChina.

The Liaohe Basin, which is located adjacent to the northeast 

end of the Bohai Sea, is a wedge-shaped Tertiary rift developed 

on a paleohigh and can be subdivided into several southwestto-northeast-trending structural units consisting of a series of 

uplifts and depressions 

(inset map, fig. 2; Chen 

and others, 1999). The 

depressions developed on 

a basement comprised of 

Precambrian, Paleozoic, 

and Mesozoic rocks. 

Sagging of the eastern 

depression adjacent to and 

west of the eastern uplift 

commenced at about 

65 million years ago 

(Sun, 1999). The eastern 

uplift is the easternmost 

structural element of the 

basin complex and is 

located within the USGS 

Luxi Jiaoliao Uplift 

Province (fig.1). Exploration of oil and gas in the 

adjacent eastern depression to the west has been 

ongoing since 1970; the 

first oil-field discovery 

occurred in 1975. However, little exploration has 

occurred in the adjacent 

eastern uplift to the east 

(inset map, fig. 2).

The U.S. Geological Survey estimated a mean of 448 billion cubic feet of potential technically recoverable unconventional natural 

gas in Carboniferous and Permian coal-bearing strata in the eastern uplift of the Liaohe Basin, Liaoning Province, China.

LUXI JIAOLIAO

UPLIFT PROVINCE 

BOHAIWAN BASIN

PROVINCE 

BOHAI SEA

Chin a

CHINA

NORTH

KOREA

122° 123° 124°

42°

41°

40°

Map

area CHINA

0 40 80 KILOMETERS

0 40 80 MILES

EXPLANATION

International boundary

Eastern Liaohe Uplift PermianCarboniferous Total Petroleum System 

Shanxi-Taiyuan Continuous Gas AU

USGS Province boundary

Figure 1. Location of U.S. Geological Survey geologic provinces, the boundaries of the Eastern Liaohe Uplift 

Permian-Carboniferous Total Petroleum System, and Shanxi-Taiyuan Continuous Gas Assessment Unit (AU) 

assessed in this study. Liaohe Basin corresponds to the onshore part of the Bohaiwan Basin Province.
Carboniferous-Permian Continuous Gas System in the 

Eastern Uplift

The Carboniferous Taiyuan and Permian Shanxi Formations compose a paralic succession of sandstone, siltstone, 

carbonaceous mudstone, and coal deposited in a range of 

environments at or near sea level. These include fluvial-alluvial 

coastal-plain systems, delta-plain and delta-front systems, 

marginal marine settings (lagoons, bays, and tidal flats), 

and shoreface-shelf systems with barrier bars and islands. A 

generalized stratigraphic section, shown in figure 2, contains 

numerous coals interbedded with sandstone, siltstone, and shale 

throughout the Carboniferous Taiyuan Formation and within the 

lower part of the Permian Shanxi Formation. Coal beds in these 

formations formed in lower coastal plain marshes and mires. 

Vitrinite reflectance analyses of samples from wells of the 

northern area of the uplift indicate that the coals are low-volatile 

bituminous to semi-anthracite in rank. Geophysical well logs 

indicate a zone of strong gas shows that correlate to this coalbearing section, with distinct gas kicks adjacent to coal beds; 

some gas shows are also indicated in associated clastic beds.

Equivalent Carboniferous and Permian formations in China’s Ordos Basin (1,200 to 1,400 kilometers to the southwest of 

Liaohe Basin’s eastern uplift) produce gas in giant fields from 

tight sandstone reservoirs that are sourced from interbedded 

coal and carbonaceous shale (Yang and others, 2005; Dai and 

others, 2008). Depositional environments of the Taiyuan and 

Shanxi Formations in the Ordos Basin include fluvial-deltaic, 

flood plain, swamp, tidal flat, and restricted platform (Yang and 

others, 2008).

Taiyuan

Shanxi

Age Formation Lithology Depth

in

meters 

2,300

2,400

2,500

2,600

2,700

Benxi

EXPLANATION

Sandstone

Siltstone

Shale

Coal

Limestone

Evaporite

Xinmin

Shenyang

Haicheng

Anshan

Gobangzi

Panjin

BOHAI SEA

western uplift

YAN SHAN

MOUNTAINS

western depression

eastern uplift

eastern depression

central rise

Damintun

depression

JIAO

LIAO MOUNTAINS

Generalized

stratigraphy

Carboniferous Permian

N

0 15 30 KILOMETERS

0 15 30 MILES

Figure 2. Generalized subsurface stratigraphic section (left) of coalbearing strata of the Carboniferous Taiyuan Formation and Permian 

Shanxi Formation and the underlying Carboniferous Benxi Formation, 

in the northern part of the eastern uplift. The inset map illustrates 

structural subdivisions of depressions and uplifts of the Liaohe Basin 

(area between the Yan Shan and Jiao Liao Mountains) and location of 

stratigraphic section.
Total Petroleum System and Assessment Unit

For this assessment, one total petroleum system (TPS) 

(the Eastern Liaohe Uplift Permian-Carboniferous TPS), and 

one assessment unit (AU) (the Shanxi-Taiyuan Continuous 

Gas AU), were defined on the basis of geology and then were 

mapped (fig. 1) using geographic information system methods. 

The Shanxi-Taiyuan Continuous Gas AU covers an area of about 

1,380 square kilometers. A geologic model was formulated for 

the AU and geologic analogs of similar unconventional gas 

resource plays were used to aid in the final assessment.

Methodology and Resource Summary

Definitions of the TPS and AU and construction of the 

geologic model were based on proprietary information provided 

by PetroChina’s Liaohe Oil Field Company and published literature. The Shanxi-Taiyuan Continuous Gas AU was assessed 

for undiscovered, technically recoverable, nonassociated 

unconventional gas; coproduct ratios were used to calculate the 

volumes of natural gas liquids.

To assist in the input for the Shanxi-Taiyuan Continuous 

Gas AU, two proven unconventional gas resource plays were 

used as analogs: (1) the upper Paleozoic Hartshorne coal, 

Arkoma Basin, Okla., U.S.A. (Houseknecht and others, 2010); 

and (2) published geology and production data from the giant 

tight-gas sandstone Sulige field in the Ordos Basin, China. In 

the Arkoma Basin, commingled coalbed and tight sandstone 

gas production is from a coal-bearing, fluvial-deltaic section 

of Pennsylvanian (late Carboniferous) age. In the Ordos Basin, 

Sulige field and other adjacent fields produce gas from a 

Carboniferous-Permian coal-bearing section of tight sandstones 

that is stratigraphically equivalent to that of the Shanxi-Taiyuan 

Continuous Gas AU. Analog data from U.S. accumulations 

included estimated ultimate recoveries (EUR) from gas wells, 

mean drainage areas of wells (cell sizes), and ranges of well 

success ratios. Key assessment input data are listed in table 1.

The USGS assessed undiscovered unconventional gas 

resources in the Shanxi-Taiyuan Continuous Gas AU of the 

Eastern Liaohe Uplift Permian-Carboniferous TPS at mean 

totals of 448 billion cubic feet (BCFG), with a range from 179 

BCFG to 848 BCFG, and 2 million barrels of natural gas liquids 

(MMBNGL), with a range from 1 to 5 MMBNGL (table 2).

Potential production area of AU (acres) 42,000 202,000 342,000 195,333

Average drainage area of wells (acres) 120 160 200 160

Average EUR (BCFG) 0.2 0.4 1.2 0.44

Success ratios (%) 70 85 95 83.3

Assessment input data Shanxi-Taiyuan Continuous Gas AU

Minimum Mode Maximum Calculated mean

Eastern Liaohe Uplift Permian-Carboniferous TPS

Shanxi-Taiyuan Continuous

Gas AU 1 Gas 179 410 848 448 1 2 5 2

Total petroleum systems

(TPS)

and Assessment Units (AU) 

AU

probability

Field

type Oil (MMBO)

Total undiscovered resources

Gas (BCFG) NGL (MMBNGL)

F95 F50 F5 Mean F95 F50 F5 Mean F95 F50 F5 Mean

Table 1. Key assessment input data for continuous gas assessment unit in the 

Liaohe Basin.

[EUR (estimated ultimate recovery per well), cell size, and success ratios are from U.S. continuous 

gas analogs. BCFG, billion cubic feet of gas. The average EUR input is the minimum, median, 

maximum, and calculated mean]

Table 2. Assessment results for potential unconventional gas in the Shanxi and Taiyuan Formations, Liaohe Basin Eastern Uplift, China.

[MMBO, million barrels of oil; BCFG, billion cubic feet of gas; NGL, natural gas liquids; MMBNGL, million barrels of natural gas liquids. Results shown are 

fully risked estimates. For gas accumulations, all liquids are included as NGL. F95 represents a 95 percent chance of at least the amount tabulated; other fractiles 

are defined similarly. AU probability is the chance of at least one well within the AU having a production capacity of the minimum estimated ultimate recovery. 

Gray shading indicates not applicable]
References

Chen, Z.Y., Yan, H., Li, J.S., Zhang, G., Zhang, Z.W., and Liu, 

B.Z., 1999, Relationship between Tertiary volcanic rocks 

and hydrocarbons in the Liaohe basin, People’s Republic of 

China: American Association of Petroleum Geologists Bulletin, v. 83, p. 1003–1014.

Dai, J., Zou, C., Qin, S., Tao, S., Ding, W., Liu, Q., and Hu, A., 

2008, Geology of giant gas fields of China: Marine and Petroleum Geology, v. 25, p. 320–334.

Gu, L., Ren, Z., Wu, C., Zhao, M., and Qiu, J., 2002, Hydrocarbon reservoirs in a trachyte porphyry intrusion in the Eastern 

depression of the Liaohe basin, northeast China: American 

Association of Petroleum Geologists Bulletin, v. 86, 

p. 1821–1832.

Houseknecht, D.W., Coleman, J.L., Milici, R.C., Garrity, C.P., 

Rouse, W.A., Fulk, B.R., Paxton, S.T., Abbott, M.M., Mars, 

J.C., Cook, T.A., Schenk, C.J., Charpentier, R.R., Klett, T.R., 

Pollastro, R.M., and Ellis, G.S., 2010, Assessment of undiscovered natural gas resources of the Arkoma Basin Province 

and geologically related areas: U.S. Geological Survey Fact 

Sheet 2010–3042, 4 p.

Hu, L., Fuhrman, A., Poelchau, H.S., Horsfield, B., Zhang, Z., 

Wu, T., Chen, Y., and Li, J., 2005, Numerical simulation of 

petroleum generation and migration in the Qingshui sag, 

western depression of the Liaohe basin, China: American 

Association of Petroleum Geologists Bulletin, v. 89, 

p. 1629–1649.

Sun, H.J., 1999, Petroleum system and exploration prospect 

evaluation of Eastern depression, Liaohe basin: Nanjing, 

China, Nanjing University, Ph.D. dissertation, 284 p. 

[in Chinese with English abstract] 

Yang, Y., Li, W., and Ma, L., 2005, Tectonic and stratigraphic 

controls on hydrocarbon systems in the Ordos basin—A multicyclic cratonic basin in central China: American Association 

of Petroleum Geologists Bulletin, v. 89, p. 255–269.

Yang, H., Fu, J., Wei, X., and Liu, X., 2008, Sulige field in the 

Ordos basin—Geological setting, field discovery and tight 

gas reservoirs: Marine and Petroleum Geology, v. 25, 

p. 387–400.

For Further Information

Supporting studies of the geologic models and the methodology used in the assessment of the eastern uplift, Liaohe 

Basin, China, are in progress. Assessment results are available 

at the USGS Energy Program website, 

http://energy.usgs.gov/OilGas.aspx.

Liaohe Basin Eastern Uplift Assessment Team

Richard M. Pollastro (Task Leader), Christopher Potter (Task 

Chief; cpotter@usgs.gov), Christopher J. Schenk (Task Chief, 

World Petroleum Resources Project; schenk@usgs.gov), 

Ronald R. Charpentier, Troy A. Cook, Timothy R. Klett, and 

Mark A. Kirschbaum.