Before 1955, the area now called Karamay was an uninhabited expanse of Gobi Desert, known only to passing camel caravans and a few nomadic herders. The natural oil seeps at Black Oil Mountain had been observed for centuries — locals used the thick crude for medicinal purposes and as a lubricant for cart axles.
The discovery of the Karamay Oilfield in 1955 was a turning point for China's energy industry. Thousands of workers — soldiers, engineers, and young volunteers — poured into the desert to build the oilfield from scratch. Living in tents and underground dugouts, they endured extreme temperatures and harsh conditions. The "Karamay Spirit" of hard work and sacrifice became a national symbol of China's industrialization drive.
By the 1960s, Karamay had grown into a company town dominated by the petroleum industry. The city was formally established in 1958 and gradually developed from a crude oilfield camp into a proper city with housing, schools, hospitals, and cultural facilities. The city's population boomed as oil workers brought their families and second generations joined the industry.
In recent decades, Karamay has worked to reduce its reliance on oil. Tourism, petrochemical processing, and technology industries have grown. The city has also invested in environmental restoration, greening the Gobi around the urban area and developing parks and recreational spaces.