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Opportunitieshe and challenges of China shale gas development

2016-06-17

The large-scale development and utilization of shale gas in the United States has  promoted our country from government departments to scientific research institutions and prodection enterprises to start research and exploration and development test boom of shale gas. After just a few years, China has made important progress in the basic research, resource investigation, demonstration area construction of shale gas, etc,. There are aready four major opportunities to accelerate the development:

First, the external dependence of China's natural gas has risen sharply, it needs to accelerate the development and utilization of shale gas.

Since 2000, with the discovery of a number of large gas field such as Kela 2, Sulige and Puguang, natural gas production had grew rapidly at an average annual rate of 12.1%, and had reached 10.72 billion square in 2012. But the output growth is still not up to the demand growth, leading to the rapid development of natural gas industry has entered a short supply situation, the external dependence has reached 25% in 2012. In this situation, to accelerate the development and utilization of shale gas and other unconventional natural gas is very important to promote the rapid development of China's natural gas industry and the development of low-carbon greeen development of economy and society.

Second, China's shale gas resources are relatively rich, which means it has the resource base of development.

China's land develop three major kinds organic shale of marine facies, transiltional facies, continental facies, distribution range widely, have good material basis for formation of shale gas. Different evaluation from domestic and foreign institutions think that the recoverable resources of China's shale gas technology is 31.6 trillions, 25 trillions, 8.8 trillions (marine facies), 10 to 15 trillions, etc.. Overall, potential resource of China's shale gas is relatively large, so it has the resource base for the accelerated development.

Third, government have introduced a number of preferential support policies, which has created a good condition for the development of shale gas. At present, the National Energy Bureau has promulgated the <Notice about publishing subsidies pulicy of the development and utilization of shale gas>, <shale gas industry policy >and other preferential policies to support the development of shale gas. Ministry of Land and Resources has conducted two rounds of shale gas block tender to attract a large number of enterprises to invest in shale gas development. Some local governments have also allocated special funds for shale gas research and exploration and development experiments.

Fourthly, the development and utilization of shale gas in China has the late-moveradvantage, the rhythm can be speeded up if the organization is effective. After about 30 years of research, the United States has gradually formed the core technology of shale gas exploration and development, such as horizontal wells, multi section fracturing, micro seismic monitoring and so on. For China's shale gas development, we can learn from the development experience of the United States, through the introduction, digestion, absorption and re innovation of mature technology, to achieve the time of scale development is expected to greatly shorten than the United states.