Abstract: In 2018, the international oil price fluctuated at a middle low level, and the average spot price of Brent crude oil increased by 31.0%.The global oil market has a basic balance between supply and demand, and the upstream oil and gas exploration, development and investment have recovered.China's proven reserves of oil and natural gas rebounded, with crude oil output of 189 million tons, which remained basically stable; conventional natural gas production was 141.5 billion cubic meters, a slight increase of 6.4% year-on-year.Oil and gas imports continued to climb, and external dependence on crude oil and natural gas reached 70.8% and 43.2% respectively, both setting new historical records.In 2018, China's petroleum enterprises implemented the spirit of the central directive, continuously increased domestic oil and gas exploration and development efforts, and reformed the oil and gas exploration and mining management system in an orderly manner.The fluctuation of international oil prices and the trend of energy policies of major oil-producing countries have all had an important impact on China's oil and gas industry.It is expected that the international oil price will fluctuate at a low level in 2019, and the price of Brent crude oil will remain at 50-70 dollars per barrel.It is estimated that crude oil production will be about 190 million tons in 2019, conventional natural gas production will exceed 150 billion cubic meters, and shale gas production will exceed 15 billion cubic meters, which will continue to maintain rapid growth.