Located in the delta of the Yellow River, it was discovered in 1961, and oil production began in earnest in 1964.
The development of the oil fields was an important contributor to the economy of the local area, playing a role in the establishment of the city of Dongying in 1983.
The Shengli Oil Field lies within the delta where the Yellow River flows out into the Bohai Sea.
The oil has a water cut that reaches above 95%, is highly viscous, as thin as 6 metres (20 ft), and 92% lies deeper than 1.2 kilometres (0.75 mi).
[2] It is estimated that the field originally had 5.21 billion tons of oil,[3] mostly onshore, but including some offshore reservoirs.
[6][8]: 8, 11 Most of the work carried out by the Shengli Oil Field Company takes place in the city of Dongying, although it also has operations in seven other prefecture level cities in Shandong Province, Binzhou, Dezhou, Jinan, Weifang, Zibo, Liaocheng, and Yantai, and a presence in 28 other counties in Shandong, and five other province-level divisions.
The growth of the oil industry around the Yellow River delta led to the creation of the city of Dongying on 1 October 1983.
[12]: 739 The Shengli Oil Field is an important component of the wider CNOOC Bohai Oilfield.
[8]: 5 Oil wells and associated infrastructure, such as roads, disturb the wetland habitat of local wildlife.
Many bird habitats were kept outside of core wildlife protection areas in order to facilitate continued oil production.
[4]: 89 The Yellow River Delta National Nature Reserve that were created in Dongying in the 1990s had its management borders defined to minimize overlap with facilities used to exploit the Shengli Oil Field.
Nonetheless, 515 oil wells producing 4.5% of output at the time were located in the area designated as a reserve, leading to coordination between the Shengli Oil Field Company and the Yellow River Delta National Nature Reserve Administrative Bureau for the management of these areas.
[6] Exploitation of offshore reservoirs on the continental shelf of the Bohai Sea increased in the 1990s, from 10,000 barrels per day in 1993 to 50,000 in 1996.
[15]: 10 Output of oil was 27.34 million tons in 2011 and 2012, and the field also produced 500 cubic metres (18,000 cu ft) of natural gas.
The most depleted oil reservoirs were the ones near Dongying, and thus near power plants producing carbon dioxide emissions.
A post-combustion capture plant was built in September 2010, with the capacity to process 110 tons per day (3,500 per year).