Oil and gas exploration and development in Qaidam begun in 1954. Qinghai oilfeild was discovered as a result of commercial oil flow found in well Dizhong-4 in Lenghu area, Qinghai province on Sept.13,1958. As of 1997, 16 oilfields and 7 gas fields had been discovered totally with a proven OOIP of 20845 ×104t and OGIP of 1343 ×108m3. A yearly oil production capacity of more than 160 ×104t and gas production capacity of about 3 ×108m3 have been established, further consolidating the basin’s position as the “fourth major gas area”.

Through arduous efforts over 50 years, the development of oil business in Qinghai oilfield has been flourishing. Its oil production had jumped at the level of 100X104t and stabilized over 100X104t consecutively for nine years since 1991. An oil production of 200X104t/a was broken through in 2000, an annual oil production of 260X 104t was realized in 2001 and an equivalent oil of 308X104t/a in 2002. In 2003, a yearly production of 350X104t is expected to be broken-through. In half century, Qinghai oilfield has been developing and became as an important energy resource base in Gansu, Qinghai and Tiebet thanks to the hard working by several generations of oil workers.　

At present, Gasi is the major oilfield for oil production in Qinghai, which has a proven OOIP of 72.4 ×106t and produces 1.08 ×106t/a. It is an oilfield under development with high efficiency in PetroChina, CNPC.

Sebei is the major gas field with a gas bearing area of 117.5km2 , including Sebei-#1 , Saibei-#2 and Tainan. The sum of its proven and probable OGIP is 2592X108m3 . Sebei has become a large Quaternary biogenic gas field globally.