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From February 23 to 25, the National Geological Survey Working Conference took place in Beijing. Wang Min, deputy director of the Ministry of Land and Resources, highlighted key achievements in national geological surveys since 1999. Among these, the exploration of groundwater resources in the Ordos region has identified numerous large-scale projects that support the development of the country’s energy and chemical industry base. These efforts have ensured a stable water supply for both industrial and domestic use in the near to medium term, especially with the rapid expansion 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 plants—continue to be built in Ordos, concerns have arisen regarding the sustainability of the region's water resources. For example, 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 (PVC) production, also demand significant water inputs. According to Li Xiang, director of the Xi’an Geological Survey Center, which was directly involved in the water resource investigation in the Ordos region, while the state has conducted continuous water resource surveys for decades, the process has not been fully systematic. This lack of clarity has led to cases where multiple projects compete for the same water source, creating inefficiencies and potential conflicts.
Currently, the causes, distribution, and recoverable reserves of water resources in the Ordos region have been largely mapped out, providing a solid foundation for informed decision-making by local governments. The area, which spans 280,000 square kilometers and borders Shaanxi, Gansu, Ningxia, Inner Mongolia, and Shanxi, is rich in energy resources. It holds 38.8% of the nation’s coal reserves, 50% of its natural gas, and 4.4% of its petroleum, along with 70% of China’s mine reserves. However, despite its wealth in fossil fuels, the region is classified as arid or semi-arid, with limited surface water, making water scarcity a critical challenge for long-term development.
According to the latest national geological survey, the total annual recharge of groundwater in the area is about 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 mining potential of 47 million cubic meters annually. The survey has identified 161 groundwater sources that are sufficient to meet the water needs of energy and chemical projects from the near-term (up to 2010) through the mid-term (up to 2020). However, Li Xiang emphasized that the region remains fundamentally water-scarce and that sustainable and scientifically managed water development is essential for future growth.
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