Shale gas development progress is much lower than expected

Abstract The shale gas exploration and development in China has slowed down and many departments such as the National Energy Administration have to face up and urge. The "Economic Information Daily" reporter learned from the National Energy Administration on January 7 that in order to accelerate the exploration and development of shale gas, the implementation of "Shale Gas Development Plan (2011-2015)", the country...
The slow exploration and development of shale gas in China has forced the National Energy Administration and other departments to face up and urge. On January 7th, it was learned from the National Energy Administration that in order to accelerate the exploration and development of shale gas and implement the “Shale Gas Development Plan (2011-2015)”, the National Energy Administration recently held a meeting with the Ministry of Finance, Ministry of Land and Resources, and Environmental Protection. The Ministry and other relevant departments supervised the implementation of the work of the 12th Five-Year Plan, assessed the problems encountered in the development of shale gas, and deployed the next steps.

“With regard to shale gas support policies, scientific and technological research and standardization issues reflected by various enterprises, the National Energy Administration will continue to communicate and negotiate with relevant departments to study policy issues and create a favorable environment for shale gas development.” National Energy Administration Deputy Director Zhang Yuqing said at the meeting.

It is understood that since 2011, the Ministry of Land and Resources has twice issued bidding methods for shale gas exploration. Under the attraction of good policies and favorable prospects, China has quickly set off shale gas “heat”, especially in the second round. The tender attracted nearly three hundred state-owned oil companies as well as private enterprises, local state-owned enterprises and non-oil and gas central enterprises to participate in the competition.

The data shows that up to now, shale gas production has exceeded 2 million cubic meters / day, Sinopec and PetroChina's shale gas demonstration zone and foreign cooperation zone have achieved a total of 143 million cubic meters of commercial gas. Among them, Sinopec Chongqing Fuling Block in 2015 has a shale gas production plan of 3.2 billion cubic meters, almost double the previous Sinopec overall planning target, “to lay the foundation for achieving shale gas production of 6.5 billion cubic meters in China in 2015, Boosted confidence," the National Energy Administration said.

However, in the eyes of many insiders, the actual development and exploration process is far lower than expected. Li Wei, director of the Zhuo Chuang Information Natural Gas Industry Chain, said that after one year, the exploration progress of the second round of winning bidders is still very slow.

According to the “Twelfth Five-Year Plan” of shale gas, it is necessary to initially realize large-scale production by 2015, and the output of shale gas will reach 6.5 billion cubic meters. According to industry estimates, China's shale gas production will be close to 200 million cubic meters throughout 2013. “In 2013, the output is still below the 2015 target, and there will be more breakthroughs in the next two years. I find it difficult to remain optimistic,” said Lin Boqiang, director of the Energy Research Center of Xiamen University.

Behind the hindrance of development, China's key technologies for shale gas development rely on foreign countries, high development costs, small production, and serious backwardness of the pipeline network. At the meeting, the winning bidders of PetroChina, Sinopec, CNOOC, Yanchang Petroleum, Zhonglian Coal and Shale Gas Blocks generally agreed that the relevant preferential policies formulated by the state to encourage the development of shale gas industry have greatly improved the exploration and development of shale gas. Enthusiasm, and hope that the government will further refine the fiscal and taxation measures in the shale gas industry policy, clarify the subsidy standards during the 13th Five-Year Plan period, and strengthen scientific and technological research and technical standards.

Zhang Yuqing said that enterprises such as PetroChina, Sinopec, Yanchang Petroleum, and Zhonglian Coal, which are responsible for the shale gas “12th Five-Year Plan”, should make corresponding work arrangements according to the plan and strive to complete the shale gas production target.

In addition, the next step is to continue to do a good job in shale gas technology research, technology integration and factory operations, strive for breakthroughs in key technologies during the 12th Five-Year Plan period, lay the foundation for the leap-forward development of the 13th Five-Year Plan, and strive to achieve shale gas planning. The target identified in . At the same time, we must attach great importance to the environmental protection work of shale gas exploration and development.

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