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From February 23 to 25, the National Geological Survey Working Conference took place in Beijing. Wang Min, the deputy director of the Ministry of Land and Resources, highlighted several significant achievements in national geological surveys since 1999. One key accomplishment is the exploration of groundwater resources in the Ordos region, which has identified numerous large-scale projects supporting the national energy and chemical industry base. These efforts have ensured a stable water supply for both industrial and domestic use, especially with the rapid growth of energy and chemical projects like the Shenhua Group’s coal-to-liquids initiative.
As major energy and chemical projects—such as large-scale coal and natural gas chemical industries—continue to develop in Ordos, concerns have arisen about whether sufficient water resources can support these operations. For instance, producing one ton of refined oil from coal requires approximately 12 tons of industrial water. Similarly, other large-scale chemical projects, including fertilizer and polyvinyl chloride production, also depend heavily on a reliable water source. According to Li Xiang, director of the Xi'an Geological Survey Center, while the state has conducted long-term investigations into the region’s water resources, the process has lacked systematic organization. This has led to confusion among authorities regarding available water resources and even cases where multiple projects have applied for the same water source.
Currently, the causes, distribution, and recoverable reserves of groundwater in the Ordos region have been largely mapped out, offering a solid foundation for informed policy decisions. The area, spanning 280,000 square kilometers and bordering Shaanxi, Gansu, Ningxia, Inner Mongolia, and Shanxi, holds vast energy reserves: 38.8% of China's coal, 50% of its natural gas, and 4.4% of its oil. However, despite its rich resources, the region is arid or semi-arid, making surface water scarce and a major constraint for energy development.
According to the national geological survey, the total annual recharge of groundwater in the area is 10.5 billion cubic meters, with 5.8 billion cubic meters being recoverable. Current extraction levels stand at 1.1 billion cubic meters per year, leaving a potential mining capacity of 47 million cubic meters annually. The 161 identified groundwater sources are expected to meet the water needs of energy and chemical projects from the near-term (up to 2010) to the mid-term (up to 2020). However, Li Xiang emphasized that the region remains fundamentally water-scarce and that sustainable and scientific water management must be prioritized to support future development.
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